Interior ministry says village-enterprise law takes effect Aug. 15

The interior ministry said Thursday a law supporting village enterprises will take effect on Aug. 15, establishing a formal framework for community-run businesses that have operated under guidelines.

Village enterprises, introduced in 2011, are community-level businesses in which residents use local resources in revenue-generating activities to create income and jobs and solve shared local problems. The act was enacted and promulgated on Aug. 14, 2025, followed by a one-year preparation period.

The interior minister must create a basic promotion plan every five years, while provincial governors will draw up annual plans. A survey will be conducted every two years, and a central committee and provincial support institutions will operate.

The law gives administrative and financial support a legal basis, with preferential treatment for enterprises established in areas facing population decline and for those with youth participation.

“The implementation of the Village Enterprise Act is the fruit of the sweat of residents who have protected their communities over the past 15 years and a turning point for a new leap forward,” Interior Minister Yoon Ho-joong said. “We will not spare field-centered support so village enterprises can establish themselves as core actors in the social-solidarity economy beyond profit making and help overcome the crisis of local extinction.”

The ministry said it will support village enterprises as they address local issues including care and aging. The enforcement decree designates April 2 each year as Village Enterprise Day. The ministry plans to publicize examples of enterprises' activities and contributions to local communities during that week.