Interior ministry says social solidarity economy bill clears National Assembly

The interior ministry said Thursday that a bill to establish a national framework for the social solidarity economy cleared the National Assembly's plenary session, after support policies had remained fragmented across programs.

Social solidarity economy covers economic activity that pursues community benefit and social value through cooperation and solidarity.

Separate policies for social enterprises, cooperatives and village enterprises had lacked an overarching system, limiting coordination between policies and their growth, the ministry said.

Under the bill, a presidential Social Solidarity Economy Development Committee would draw up five-year plans and coordinate programs divided among ministries. The government plans to use the framework to address regional decline, inequality and gaps in care services.

"Thirteen years after the first proposal in 2014, the enactment of the Social Solidarity Economy Framework Act has finally brought the long efforts and aspirations of the sector to fruition," Interior Minister Yoon Ho-jung said. He said the ministry would support organizations in building self-reliance and work to establish the social solidarity economy as a new growth engine.

The bill calls for social solidarity finance, including investment, lending and guarantees, through a dedicated institution and intermediaries. It would expand preferential purchasing by public institutions and provide training and market-development support.

The ministry cited local projects already operating under the model. In Gyeongju, North Gyeongsang Province, residents formed a cooperative to convert vacant homes into lodging and create jobs, while a Yeoju solar project reinvests revenue in resident welfare and village-bus operations. Other examples include Daegu's Ansim Village, where the community addressed care for people with developmental disabilities and food issues, and Namyangju's WeStay Byeollae, where residents became cooperative members to reduce rent burdens.

The bill is to be transferred to the government for Cabinet approval and formal publication, then take effect six months after publication.