🚨 Social Solidarity Economy Basic Law

Today Korean Social News for Beginners | 2026.01.31

0️⃣ 10 Years of Discussion Without Legislation, Field Calls for Institutional Stability

📌 "National Assembly Must Decide"... Social Solidarity Economy Basic Law Spinning Its Wheels Despite 10 Years of Discussion

💬 The Social Solidarity Economy Basic Law has been discussed for over 10 years but still hasn't passed the National Assembly. While the government, field workers, and policy experts have reached consensus on the need for legislation, bill review has not progressed due to National Assembly scheduling and priority issues. The social solidarity economy has expanded its role in areas with public value such as care services, food, housing, community services, and energy transition. However, ongoing criticism points to the lack of policy continuity and stability due to the absence of legal foundation. The bill remains stuck without being referred to subcommittee, with scheduling and priority setting delayed before even reaching dispute resolution. Social solidarity economy organizations are calling for the political sector's legislative decision through resolution adoption and citizen participation campaigns.

💡 Summary

• The Social Solidarity Economy Basic Law has been discussed for over 10 years but legislation is delayed due to National Assembly scheduling issues.
• The lack of legal foundation continues to cause problems with policy continuity and stability in the field.
• Social solidarity economy organizations are urging the political sector to make legislative decisions through resolutions and campaigns.

1️⃣ Definition

The Social Solidarity Economy Basic Law is basic legislation to define and support economic activities based on cooperation and solidarity within the national policy system. The goal is to institutionally support the realization of social value and local economy activation by encompassing various entities such as social enterprises, cooperatives, and village enterprises.

This law aims to consistently foster the social solidarity economy through national and local government responsibilities, basic plan establishment, and policy promotion system creation. As a higher law encompassing individual laws like the Social Enterprise Promotion Act and the Framework Act on Cooperatives, it intends to strengthen policy consistency and administrative integration.

💡 Why Is This Important?

• The social solidarity economy plays a role in areas where public value is important, such as care, food, and housing.
• Without legal foundation, support may be discontinued or reduced when administrations change or policies shift.
• Individual laws are fragmented, limiting policy integration and long-term strategy development.
• A basic law can establish a stable financial and funding support system.

2️⃣ Current Status and Issues of the Social Solidarity Economy Basic Law

📕 Concept and Role of Social Solidarity Economy

• Social solidarity economy is economic activity that prioritizes social value over profit. Key features include:

  • Goals include employing vulnerable populations, solving local problems, and supplementing public services.
  • Uses cooperation rather than competition as a core principle to pursue community interests.
  • Has been discussed as an alternative economic model complementing market and state limitations.
  • Encompasses various organizational forms including social enterprises, cooperatives, village enterprises, and self-support enterprises.

• It realizes public value in various areas. Main activity areas include:

  • Care: Provides social services such as elderly care, disability support, and childcare.
  • Food: Supplies healthy food through local food, organic agriculture distribution, and public meals.
  • Housing: Creates stable housing environments through cooperative housing and youth housing support.
  • Community Services: Activates local communities through village cafes, shared spaces, and cultural projects.
  • Energy Transition: Builds sustainable energy systems through solar power cooperatives and energy-independent villages.

📕 Limitations of Existing Individual Laws

• Individual laws are fragmented, making policy integration difficult. Main problems include:

  • The Social Enterprise Promotion Act, Framework Act on Cooperatives, and Urban Regeneration Act each govern separate areas.
  • Fragmented legal systems lack policy consistency and create duplicate support.
  • Support projects are divided by ministry, making integrated support difficult.
  • The structure makes it difficult to establish long-term development strategies.

• Support is centered on short-term projects. Main limitations include:

  • Operates on 1-3 year projects with low sustainability.
  • Risk of support discontinuation when administrations change or policy priorities shift.
  • Fields find it difficult to make stable plans and must focus on short-term results.
  • Unstable financial and funding support systems make organizational operation difficult.

📕 Background and Problems of Legislative Delay

• Despite over 10 years of discussion, legislation has not occurred. Main progress includes:

  • Bills have been proposed multiple times but repeatedly stalled due to administration changes and National Assembly schedule changes.
  • Discussion often stopped because it was pushed back in political priorities rather than major disagreements on bill content.
  • Currently stalled without being referred to standing committee subcommittee.
  • Scheduling and priority setting delayed before dispute resolution.

• Fields are experiencing difficulties due to lack of legal foundation. Main problems include:

  • Policy continuity and stability are poor, making long-term planning difficult.
  • Unclear role division between central and local government causes confusion.
  • Unstable financial support creates organizational operation difficulties.
  • The public role of social solidarity economy is not institutionally recognized.

💡 Main Problems of Legislative Delay for Social Solidarity Economy Basic Law

1. Policy Instability: Risk of support discontinuation when administration changes due to lack of legal foundation
2. Short-term Project Focus: Low sustainability with 1-3 year projects
3. Fragmented Individual Laws: Difficulty in integrated policy promotion and long-term strategy establishment
4. Pushed Back in Priorities: Continuously pushed back in political priorities at National Assembly
5. Increased Field Burden: Difficulty in field operations due to lack of institutional stability

3️⃣ Expected Effects and Tasks of Basic Law Enactment

✅ Expected Effects of Basic Law Enactment

• Legal foundation for policies becomes clear. Main effects include:

  • Legal basis for social solidarity economy policies is established, increasing stability.
  • Mid to long-term basic plan establishment becomes possible, enabling consistent policy promotion.
  • Continuous support is guaranteed even with administration changes or policy shifts.
  • Responsibilities of national and local governments become clear, enabling responsible policy execution.

• Administrative integration and financial support are strengthened. Main directions include:

  • Role division between central and local government is organized, increasing policy execution predictability.
  • Smooth inter-ministerial policy coordination reduces duplicate support and increases efficiency.
  • Stable financial and funding support system is established, stabilizing field organization operations.
  • The public role of social solidarity economy can be institutionally recognized.

✅ Tasks for Legislation

• National Assembly's political decision is needed. Main directions include:

  • Should be processed quickly with high priority since there are no major disagreements on bill content.
  • Should be referred to standing committee subcommittee to start concrete discussion.
  • Should pursue prompt legislation through inter-party consultation.
  • Should listen to voices from the social solidarity economy field and reflect them in legislation.

• Continuous attention and pressure from field and citizens are needed. Main activities include:

  • Should continue resolution adoption and campaigns by social solidarity economy organizations.
  • Should expand citizen participation to pressure the political sector for legislation.
  • Should continuously raise legislative delay issues through media and public opinion.
  • Should publicize success stories and spread social awareness of the need for basic law enactment.

• Effective implementation after enactment is important. Main tasks include:

  • Should prepare enforcement decrees and detailed guidelines suited to field realities.
  • Should secure sufficient budget to ensure practical support.
  • Should establish cooperation system between central and local government.
  • Should increase policy effectiveness through regular evaluation and improvement.

4️⃣ Related Terms

🔎 Social Solidarity Economy

• Social solidarity economy is economic activity pursuing social value based on cooperation and solidarity.
  • Social solidarity economy means economic activity that prioritizes social value and community interests over profit maximization. It aims for vulnerable population employment, local problem solving, and public service supplementation, with cooperation rather than competition as a core principle.
  • Key features include: First, prioritizes social purpose. Even when profit occurs, it is reinvested to achieve social purposes. Second, pursues democratic operation. Has democratic structure where members or constituents participate in decision-making. Third, values local foundation. Contributes to solving local community problems and activating communities. Fourth, encompasses various forms. Includes various organizational forms such as social enterprises, cooperatives, village enterprises, and self-support enterprises.
  • Social solidarity economy is receiving attention as an alternative economic model complementing market and state limitations. Market economy has high efficiency but can deepen inequality and polarization, while the state pursues public value but has rigidity and inefficiency problems. Social solidarity economy is an attempt to combine advantages of both to pursue efficiency and public value simultaneously.

🔎 Social Enterprise

• Social enterprise is a company pursuing social purpose.
  • Social enterprise means a company that conducts business activities such as producing and selling goods and services while primarily pursuing social purposes such as employing vulnerable populations, providing social services, and activating local communities. It was institutionalized with the 2007 enactment of the Social Enterprise Promotion Act.
  • Types of social enterprises include: First, job provision type provides jobs to vulnerable populations. Second, social service provision type provides social services such as care, education, and culture. Third, local community contribution type conducts activities to improve quality of life for local residents. Fourth, mixed type combines multiple types. Fifth, other type solves social problems through creative and innovative methods.
  • Social enterprises operate with certification from the Ministry of Employment and Labor and can receive support such as personnel cost support, tax benefits, and priority purchasing. However, certification requirements are strict and support periods are limited, often causing difficulties in self-reliance. If the Social Solidarity Economy Basic Law is enacted, a more stable support system is expected to be established.

🔎 Cooperative

• A cooperative is a business organization jointly owned and democratically operated by members.
  • A cooperative is a business organization that improves members' interests and contributes to local communities by cooperatively conducting purchase, production, sale, and provision of goods or services. The 2012 Framework Act on Cooperatives made it possible for anyone to establish a cooperative with 5 or more people.
  • Cooperative principles include: First, voluntary and open membership system. Anyone can freely join and withdraw. Second, democratic management by members. Democratic decision-making through one-member-one-vote principle. Third, member economic participation. Participate in investment and profit distribution. Fourth, autonomy and independence. Operates autonomously without government or external interference. Fifth, education, training, and information provision. Sixth, cooperation among cooperatives. Seventh, contribution to local community.
  • In Korea, cooperatives have rapidly increased since 2012, but criticism exists that many small-scale cooperatives have low sustainability. If the Social Solidarity Economy Basic Law is enacted, integrated support for all social solidarity economy organizations including cooperatives is expected.

🔎 Village Enterprise

• Village enterprise is a company where local residents lead to solve local problems.
  • Village enterprise means a village-level company established and operated by local residents to effectively realize local community interests by solving common local problems and creating income and jobs through profit business utilizing various local resources. It is supported under the supervision of the Ministry of the Interior and Safety.
  • Features of village enterprises include: First, led by local residents. Established and operated by 5 or more village residents' investment. Second, utilizes local resources. Uses local specialties, tourism resources, cultural resources, etc. Third, solves local problems. Solves local problems such as job creation, income increase, and community activation. Fourth, returns profits to the region. Reinvests part of profits in local community.
  • Village enterprises operate in various regions, both rural and urban. They are active in various fields such as local food cafes, shared workshops, experiential tourism, and care services. However, many face difficulties in self-reliance due to weak market competitiveness and limited support periods. If the Social Solidarity Economy Basic Law is enacted, more systematic and stable support is expected.

5️⃣ Frequently Asked Questions (FAQ)

Q: What changes will occur if the Social Solidarity Economy Basic Law is enacted?

A: Legal foundation for policies is established, enabling stable and consistent support.

• When the basic law is enacted, the legal basis for social solidarity economy policies becomes clear. National and local government responsibilities are stipulated, mid to long-term basic plan establishment becomes mandatory, and consistent policy promotion becomes possible. Even when administrations change or policy priorities shift, continuous support is guaranteed, significantly reducing instability in the field.
• Additionally, role division between central and local government is organized, inter-ministerial policy coordination becomes smooth, reducing duplicate support and increasing efficiency. A stable financial and funding support system is established, enabling social solidarity economy organizations to make long-term plans and operate sustainably. The public role of social solidarity economy is institutionally recognized, and social status is expected to rise.

Q: What is the relationship between existing individual laws and the Social Solidarity Economy Basic Law?

A: The basic law is a higher law encompassing individual laws, strengthening policy integration.

• Currently, individual laws such as the Social Enterprise Promotion Act and Framework Act on Cooperatives each govern separate areas. These laws have their own purposes and support systems, but fragmented legal systems lack policy consistency and have limitations in integrated support.
• The Social Solidarity Economy Basic Law functions as a higher law encompassing these individual laws. Rather than abolishing individual laws, it provides an overarching framework to strengthen policy consistency and administrative integration. For example, instead of individually supporting social enterprises, cooperatives, and village enterprises, they will be systematically supported under the integrated concept of social solidarity economy. This reduces policy duplication and enables long-term development strategy establishment.

Q: Can ordinary citizens also participate in the social solidarity economy?

A: Anyone can participate by joining as a member or participating as a consumer.

• Social solidarity economy is not for specific groups only but is open economic activity where anyone can participate. The most direct participation method is becoming a member of a cooperative or social enterprise or working as an employee. Anyone can establish a cooperative with 5 or more people, or join existing cooperatives as members.
• You can also participate as a consumer using products or services of social solidarity economy organizations. Using local food cafes, purchasing products produced by cooperatives, or using social enterprise services are also important participation. These consumption activities become the foundation for making social solidarity economy sustainable. Some cooperatives operate consumer member systems allowing consumers to participate in decision-making. It's good to find social solidarity economy organizations in your area and participate in fields of interest.

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