South Korea Launches 19.6 Billion Won Program to Build Local Social Economy Ecosystems

The government is launching a large-scale support program with local governments to foster social enterprises as key players in solving regional problems, including youth employment and gaps in care services. A total of 19.6 billion won will be invested this year.

The Ministry of Employment and Labor announced the plan at a launch ceremony for the “Social Solidarity Economy Local Ecosystem Revitalization Project” held Thursday morning at COEX Magok in Seoul.
 
The project shifts away from simple, stand-alone support for individual social enterprises. Instead, it aims to build a social solidarity economy ecosystem in which social enterprises, local governments and other regional partners work together to address local challenges. The ministry said the goal is to help communities define their own problems and create a foundation to solve them with social enterprises and other actors.
 
This year’s program will focus on two areas: labor integration and integrated care. Local governments will identify core tasks suited to local conditions, and social solidarity economy companies will participate in building tailored solutions.

The ministry said it expects the effort to help social enterprises take root more stably in their communities while advancing both problem-solving and sustainable growth.

In January, the ministry opened a call for proposals for non-capital regions. It selected 11 local governments as suitable models: North Gyeongsang Province, Daegu, Gwangju, North Chungcheong Province, Ulsan, Jeju, North Jeolla Province, South Gyeongsang Province, Busan, South Chungcheong Province and South Jeolla Province.

A total of 19.6 billion won will be投入 to address community problems, including 13.7 billion won in national funding and 5.9 billion won from local governments.
 
At the ceremony, Daegu, North Gyeongsang Province and Gwangju presented representative project models.

Daegu plans a model to support re-entry into the labor market for at-risk youth and young people vulnerable to unemployment, along with building a transitional home and community-based care system for patients after hospital discharge.

North Gyeongsang Province will run a model offering industry-specific job adaptation and employment linkage support for young people who graduated from vocational high schools but remain unemployed, and it will operate an integrated neighborhood care program based at senior centers. Gwangju plans to support young people’s entry into society through digital job-based programs and provide tailored care services for people in care blind spots, including unregistered children.
 
Kwon Jin-ho, director general for Integrated Employment Policy at the ministry, said social solidarity economy companies are “key players” in solving community problems based on expertise and innovation built up in the field. He said the ministry will actively support efforts to create an ecosystem in which such companies work with relevant local institutions to solve problems locally and grow together.