GSEF Social Economy Policy Guidebook – Seoul Metropolitan Government Status of Social Economy Development in Seoul A Case Study of Seoul GSEF Social Economy Policy Guidebook –Seoul Metropolitan Government Status of Social Economy Development in Seoul A Case Study of Seoul Status of Social Economy Development in Seoul - A Case Study of Seoul GSEF Social Economy Policy Guidebook - Seoul Metropolitan Government Publisher: Global Social Economy Forum (GSEF) Social Economy of Seoul/Karl Polanyi Institute Asia Author: Yeon Ah KIM, Senior Researcher Author: Taein JUNG, Head of Research Executives Seoul’s Social Economy Policy(2011-2015): Achievements and Challenges/Seoul Social Economy Center Author: Eunae LEE, CEO, President Translator: Ju Hea JANG, Translation Cooperative Copyright ⓒ Global Social Economy Forum (GSEF) Design and Layout by desing Gem First published in Seoul, Republic of Korea 2016 Email: [email protected] Website: www.gsef-net.org Global Social Economy Forum Contents Infographics : Social Economy of Seoul 06 Social Economy of Seoul Introduction 13 Social Economy Policy in Korea 16 Local Social Economic Ecosystem Development Project (LSEEDP) 40 Infrastructure for the Social Economy in Seoul 51 List of Acronyms Current Policy Issues Relating to the Seoul Social Economy 61 Outro: the Possibility of a “Seoul Model” 76 CDR: Quebec’s Regional Development Cooperative CBPP: Community Business Promotion Project Bibliography 78 FAC: Framework Act on Cooperatives GSEF: Global Social Economy Forum KoSEA: Korea Social Economy Promotion Agency Seoul’s Social Economy Policy(2011-2015): KPIA: Karl Polanyi Institute Asia Achievements and Challenges MOEL: The Ministry of Employment and Labor MOI: The Ministry of the Interior Background 80 MOSF: The Ministry of Strategy and Finance Seoul’s social economy policy: achievements over the past five years 81 SSEPC: Seoul Social Economy Policy Council LSEEDP: Local Social Economic Ecosystem Development Project Fostering an ecosystem for greater self-sufficiency 84 SEPA: Social Enterprise Promotion Act Enhancing the autonomy and capabilities of the social economy 89 SEZ: Social Economy Zone SCCC: Seoul Cooperative Consulting Centers Developing platforms for solving local problems 92 SCBA: Seoul Community Business Association Leading the creation of the Global Social Economy Forum (GSEF) 94 SRCA: Seoul Regional Cooperative Association SCSC: Seoul Cooperative Support Center Improving the efficiency of fiscal support 95 SCSE: Seoul Council of Social Enterprises Challenges 97 SMG: Seoul Metropolitan Government SSEC: Seoul Social Economy Center SSEN: Seoul Social Economy Network Social Economy of Seoul Social Enterprises Social enterprises Area These are business organizations that produce and distribute goods and services for social reasons, such as delivering social services 605.21Km2 and creating jobs for the vulnerable, and improving the standard of living and the quality of life for local communities. Population 10,297,138 •Social service enterprises: provide social services for the welfare of the marginalized. •Employment-creating enterprises: provide jobs for the marginalized. •Community-contributing enterprises: contribute to local communities by increasing income and creating jobs for locals, and helping to solve local problems. •Mixed-type enterprises: create jobs and provide social services for the marginalized. •Other enterprises: enterprises whose activities have social impact, even though their contributions to employment and social services cannot be easily quantified. Administration: 25 self-governing gu (boroughs), 424 dong (neighborhood units) Cooperatives • Average gu-size: Area 24.2Km2 , Population 413,980 • Average dong-size: Area 1,43Km2 , Population 24,285 These are business organizations that promote the interests of members and contribute to local society by organizing cooperation over the production, sales, distribution, and purchase of goods and services. •General cooperatives: for-profit organizations that are created by 433 2,267 119 five or more incorporators and promote the interests of members. Social enterprises Cooperatives Community •Social cooperatives: cooperatives that are created to carry out business projects for enterprises social causes. Community enterprises 3,000 Social enterprises 2,819 Coperatives These business organizations bring together locals on mobilizing Community enterprises 2,500 various locally available resources so as to generate revenue, Total 2,271 2,267 income, and jobs for locals, solve local issues, and promote the interests of local communities. 2,000 1,772 1,548 •New-type community enterprises: contribute to local communities 1,500 by making use of local human resources (young adults, retirees, 1,007 stay-at-home mothers who used to work in the past), public resources (cultural 1,000 properties such as Confucian schools, abandoned schools, and other tangible and 624 542 intangible assets), and/or technological resources (IT, design, and other unique 341 500 532 technologies). 475 433 433 332 108 374 125 119 •Community enterprises-in-the-making: enterprises capable of evolving into 9 67 16 76 0 community enterprises, and designated by the heads of central government 2010 2011 2012 2013 2014 2015 ministries or of local governments. •Distribution community enterprises: enterprises that specialize in the sale and | Annual Growth of the Social Economy in Seoul | distribution of products of other community enterprises (one per metropolitan city or province). Social Economy Networks in Seoul today Seoul, a City with a Burgeoning Social Economy Social economy networks in Seoul today (As of December 2015) Social service Dobong ▲ ▣ Social economy ecosystem groups center for ◆★ 6 boroughs urban renewal ◆ Social economy councils 20 boroughs ● Social economy integrated support centers Nowon Resource recycling, 8 boroughs Gangbuk ●◆▲■ teenager, and ★ Borough social economy support centers ●◆▲ senior care services 3 boroughs ▲ Local self-rehabilitation centers 24 boroughs ■ Social Economy Zones (preliminary) 6 boroughs Eunpyeong ●◆▲ International cooperation on social economy GSEF established in November 2014. Culture-and art-t hemed Seongbuk tourism business model ■●◆▲ 18 participating cities Jungnang 43 participating nongovernmental organizations ◆▲ 3 participating international organizations Over 4,000 attendees Jongno Comprehensive care service Seoul as the first chair city. ◆▲ Dongdaemun business model Seodaemun ▲ ◆▲ ◆ Gangseo Mapo Jung ▲ ▣◆▲ ▲ ■ Seongdong Gwangjin ●▲■ Gangdong ▣◆▲■ ▣◆★▲ Yongsan ◆▲ Yangcheon Yeongdeungpo ▣◆▲ ▣◆▲ Social fashion ecosystem Songpa Dongjak ◆★▲ ▣▲ Gangnam Guro ▲ ●◆▲ Seocho ◆ Gwanak ▲ Geumcheon ■●◆ ●◆▲ Neighborhood-wide childcare Social Economy of Seoul Introduction he Korean social economy has grown at a remarkable pace over T the last few years, attracting attention from around the world. The number of social economy enterprises, of which there were a mere 501 as of the end of 2010, has multiplied exponentially since the enactment of the Framework Act on Cooperatives (FAC) in 2012, reaching 11,421 (including 1,506 certified social enterprises, 8,551 cooperatives, and 1,364 community enterprises) as of the end of 2015. In other words, the social economy in Korea, measured in terms of the number of actors and enterprises involved, has multiplied by over 22 times in less than five years since the Korean government began to provide policy support. If we counted nonprofit corporations and organizations that strive to realize social values through economic activities, such as rehabilitation enterprises, rural community companies, and other enterprises catering to the employment of severely disabled persons, the scope of the social economy would grow even wider. Seoul alone is home to 23.2 percent of all Korean social economy enterprises (260 certified social enterprises, 2,267 cooperatives, and 119 community enterprises, total 2,646 enterprises), leading the development and progress of the social economy nationwide. There may still be those who question the sustainability of this Introduction 013 rapidly growing economy. Nevertheless, the Korean social economy, social economy policy practices of the SMG and the 25 self-governing particularly in Seoul, is attracting increasing attention from the boroughs making up the city, and to assess the environment and issues international community. This is because the explosive growth of the surrounding the social economy in each borough. The goal was to Seoul social economy is one of the rare examples in which a long research and analyze how the social economy model conceived by the tradition of civil solidarity has combined successfully with governmental SMG has been implemented in each borough and to what extent the policy support in a productive synergy. The social economy of Seoul social economy of Seoul has progressed. provides an exemplary case of multi-sectoral partnership, with the This report also summarizes some of the major social economy municipal government and local civil society working closely together policy initiatives in Seoul as well as a section of the results of an throughout the entire process of social economy policy making and opinion poll. It would be a daunting task to provide a comprehensive implementation from policy review to budget preparations. Since and detailed evaluation and analysis of the entire social economy of the early days of adopting its social economy policy, the Seoul Seoul. This study nonetheless provides a helpful overview