Ministry of SMEs and Startups to Boost Social Solidarity Economy Enterprises... Expanding Funding and Market Support

"Social Solidarity Economy Growth Forum" Held in Yeouido on September 22

The government is strengthening support for scaling up and creating new market opportunities for social solidarity economy enterprises by establishing dedicated funding and utilizing the public institution preferential purchasing system.

The Ministry of SMEs and Startups announced on September 22, at the Glad Hotel in Yeouido, Seoul, that it had held the "Social Solidarity Economy Growth Forum" where the National Assembly, government, and private sector discussed strategies to vitalize the social solidarity economy sector.

Social solidarity economy enterprises are companies that engage in economic activities based on cooperation and solidarity, aiming to realize the common interests of community members and social values.

This forum is the first event focused on the growth of social solidarity economy enterprises since the announcement of the "Comprehensive Plan for Social Solidarity Economy Development" at the end of June and the enactment of the "Basic Act on Social Solidarity Economy" on September 15. The event was attended by more than 50 participants, including Noh Yongseok, First Vice Minister of the Ministry of SMEs and Startups, Kim Youngbae, Assemblyman from the Democratic Party of Korea, Choi Hyukjin, Independent Assemblyman, officials from the Ministry of the Interior and Safety, and experts in the field of social solidarity economy.

On this day, the Ministry of the Interior and Safety announced the "Policy Direction for Social Solidarity Economy Development," while the Ministry of SMEs and Startups presented the "Measures to Promote Growth-Oriented Social Solidarity Economy Enterprises."

First, leveraging the enactment of the Basic Act on Social Solidarity Economy, the Ministry of the Interior and Safety plans to establish a whole-of-government system, including a presidential committee, and will systematically integrate support infrastructure such as social solidarity finance, public sector market opportunities, and statistical data. The ministry will support the social solidarity economy by coordinating currently fragmented policies through five-year basic plans and annual implementation plans.

The Ministry of SMEs and Startups will provide a variety of policy tools to support the growth of social solidarity economy enterprises. Customized scaling-up support will be offered at each stage of growth, including through the Initial Startup Package and TIPS (Tech Incubator Program for Startup). The ministry also plans to create dedicated funding so that social solidarity economy enterprises can secure stable financing.

In addition, networking events connecting domestic and international social solidarity economy experts and enterprises will be organized in conjunction with the global startup festival "COMEUP." Collaboration between large corporations and social solidarity economy enterprises will also be enhanced through joint projects utilizing coexistence cooperation funds.

A foundation for growth through laws and institutions will be established as well. The ministry will operate the newly established public institution preferential purchasing system, based on the Basic Act on Social Solidarity Economy, to help expand sales channels. The ministry will also support the growth of consumer cooperatives, which will be newly overseen by the Ministry of SMEs and Startups starting in November. Furthermore, there are plans to revise the law so that village enterprises and self-sufficiency enterprises are included in the scope of small and medium enterprises, and to enact a Social Venture Act to clarify the definition and support framework for social ventures.

First Vice Minister Noh stated, "Social solidarity economy enterprises have been key drivers in our economy, achieving business growth while also tackling various social challenges," adding, "We will strive to support the growth of social solidarity economy enterprises and expand the spread of social values in tandem."

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