Does State-Driven Social Economy Work? The Case of Community Business in South Korea

Choi, Hyunsun, Park, Jungyoon and Lee, Eungi (2021) Does State-Driven Social Economy Work? The Case of Community Business in South Korea.

Abstract

What is the role of the government in enhancing social economy? South Korea has implemented projects and programs to enhance social economy. This paper discusses the positive role of government intervention by looking at the case of community business in South Korea. In addition, some limitations are discussed. Qualitative data based on in-depth interviews with diverse stakeholders and participants were included. In addition, a comprehensive analysis of government documents and literature was conducted.

In spite of some bureaucratic and institutional limitations, the village company program of Korea has played an important role in enhancing the social economy for ten years. In particular, the early stages of government intervention in Korea have been successful. However, when the government intends to get involved in enhancing the social economy, it is necessary to carefully prepare formal and informal institutions.

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