Ministry of Land, Infrastructure and Transport Publishes Best Practice Guidebook for Preliminary Social Enterprises

[Asia Economy Reporter Chunhee Lee] The Ministry of Land, Infrastructure and Transport has selected outstanding cases among 'preliminary social enterprises' that are achieving results in the urban regeneration sector to support the growth of companies fostering social enterprises.

The Ministry of Land announced on the 31st that it had selected 11 exemplary cases of preliminary social enterprises in the land and transportation sector.

Preliminary social enterprises are companies that have not yet been certified as social enterprises but pursue social objectives. Various ministries and local governments designate these companies as preliminary social enterprises to support their growth into social enterprises. Since 2018, the Ministry of Land has introduced a designation system for companies active in the urban regeneration field and has designated a total of 158 companies to date.

When selected as a preliminary social enterprise by a central ministry, companies become eligible to participate in financial support projects promoted by the Ministry of Employment and Labor and local governments. When participating in job creation projects, labor costs for participating workers at minimum wage levels are supported, and labor costs are also supported when hiring professional personnel necessary for business operations such as strategic planning, accounting, and marketing. Additionally, up to 50 million KRW per year is provided as business development funds. Furthermore, the Ministry of Land itself grants additional points when local governments establish project plans linking land and transportation-type preliminary social enterprises as support institutions. When supporting urban regeneration seed loans from the urban account of the fund, Housing and Urban Guarantee Corporation (HUG) provides preferential guarantee screening points, and the loan limit is increased from 70% to 80% of the project cost. Through this support, 17 companies have successfully grown into social enterprises so far.

The Ministry of Land’s recent selection of exemplary land and transportation-type preliminary social enterprises was conducted to discover and disseminate cases of excellent companies that are achieving business results in the urban regeneration sector while realizing social objectives. Among 25 companies that applied last October, a total of 11 companies were selected after evaluating efforts to realize social objectives, utilization of support systems, contribution to urban regeneration, and business sustainability.

Among the exemplary land and transportation-type preliminary social enterprises selected, Infirute and Orot Company received high evaluations for their active urban regeneration startup education and having a clear main customer base with high capabilities, respectively. Socio Living was recognized for providing integrated residential services in apartment complexes, and Seoul Social Standard was noted for offering diverse housing types tailored to single-person households.

In addition, a book titled '2020 Land and Transportation-type Preliminary Social Enterprises Exemplary Cases Collection,' containing the companies’ beliefs, major business achievements, social contribution details, and CEO interviews, will be distributed to urban regeneration support centers nationwide. It will also be available through the Urban Regeneration Comprehensive Information System website.

Cho Sung-gyun, Director of Urban Regeneration Capability at the Ministry of Land, said, "Social economy entities can contribute to revitalizing the local economy while realizing social objectives, making them one of the important actors in urban regeneration projects. I congratulate the preliminary social enterprises selected as exemplary cases and hope they continue to grow together with local communities."

This content was produced with the assistance of AI translation services.