Cooperative Surpasses 20,000 Units: Government Emphasizes Increasing Role of Social Economy Organizations and Supports Growth

Lee Eok-won, First Vice Minister of Strategy and Finance, is presiding over the "19th Cooperative Policy Deliberation Committee" at the Government Seoul Office in Gwanghwamun, Seoul, on the 20th. May 20, 2021.
Photo by Yonhap News

[Sejong=Asia Economy Reporter Son Seon-hee] Due to the impact of policies promoting the activation of the social economy, the number of domestic cooperatives surpassed 20,000 as of the end of March. The government has decided to strengthen support for the growth of promising cooperatives.

On the morning of the 20th, Lee Eok-won, First Vice Minister of the Ministry of Economy and Finance, held the "19th Cooperative Policy Deliberation Committee" at the Government Seoul Office and said, "In the current situation where social structural transformation due to COVID-19 is accelerating, the role of social economy organizations such as cooperatives is increasing," adding, "Compared to the European Union (EU) and others, the government must further strengthen policy efforts to enhance the quantitative growth and qualitative competitiveness of Korea's social economy organizations, which are in their infancy."

Since the enforcement of the Framework Act on Cooperatives in December 2012, the number of cooperatives has steadily increased every year, surpassing 10,000 in 2016 and reaching 20,166 as of the end of last March. The number of vulnerable people employed by cooperatives was 11,243 as of 2018. Vice Minister Lee evaluated, "Cooperatives contribute significantly by providing jobs to vulnerable groups and supplementing social service blind spots in the intermediate area between the government and the market."

At the meeting, measures to strengthen the competitiveness of cooperatives in response to structural changes after COVID-19 were reviewed and approved, and plans for a cooperative status survey were also discussed.

The government plans to expand cooperative entry into new markets related to care and medical services, freelancers and employees, and the Korean New Deal, and to support the scale-up transition of promising cooperatives. It will also support scaling and capacity building through cooperative federations.

The government stated, "We plan to focus policy capabilities to faithfully implement the 'Cooperative Competitiveness Enhancement Plan,' actively support the growth of cooperatives, and strengthen the ecosystem for cooperatives to grow independently in the era of 20,000 cooperatives."

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