The government aims to increase the number of social enterprises to 3,000 from the current 774 by 2017, the Ministry of Employment and Labor said Monday.
Under the ministry’s five-year plan starting next year, the government will expand support of social enterprises throughout their entire business cycle, from start-ups, marketing and sales strategies to financial consulting.
Social enterprises are for-profit yet social mission-driven companies such as a bakery hiring disabled persons as bakers and staff.
This is the country’s second five-year plan to foster such companies, viewed as a solution to deliver social services in a fast-aging society and create jobs for the elderly, disabled and needy.
Among the envisioned measures is a plan to force public agencies to purchase services and products of social enterprises on a quota basis, although the exact amount is yet to be determined.
Another measure calls for expansion of a government-run fund, set up last year with 8.2 billion won ($7.6 million) in initial capital, to invest in more social enterprises.
The cap on policy loans offered to social enterprises will be raised to 7,000 from the current 5,000.
“For social enterprises to be able to provide social services that our society needs and create more jobs, we need to build an entire ecosystem where such good firms can thrive,” said Labor Minister Lee Chae-pil.
“We will strive to make the next five years a stepping stone for a new leap of social enterprises in Korea.”
As of December, there are 774 such firms in Korea, hiring a total of 18,689 workers.
By Lee Sun-young (
milaya@heraldcorp.com)
