South Korea Enacts Framework Act to Unify Social Solidarity Economy Policy

The Republic of Korea has enacted the Social Solidarity Economy Framework Act (법률 제21921호), a new basic law that for the first time gives a single legal definition and support architecture to the country’s social solidarity economy. The law was promulgated by President Lee Jae-myung on 15 September 2026 and published in the Gwanbo (Republic of Korea Official Gazette), issue No. 21322, countersigned by Prime Minister Han Seong-suk and Minister of the Interior and Safety Yoon Ho-jung.

The Act aims to lay a common legal foundation for the definition and scope of the social solidarity economy so that development policies are pursued in an integrated and efficient way, fostering a sustainable ecosystem and contributing to social cohesion and quality of life. It takes effect six months after promulgation, with the disclosure and platform provisions (Articles 26 and 27) entering into force three years after promulgation.

Scope and definitions

The law defines the social solidarity economy as all economic activity carried out on the basis of mutual cooperation and solidarity to realise the common interest of community members and social value. It then enumerates the organisations covered, bringing together entities previously regulated under separate statutes.

• Social solidarity economy enterprises, including social enterprises under the Social Enterprise Promotion Act, cooperatives and social cooperatives under the Framework Act on Cooperatives, village enterprises, self-sufficiency enterprises, social venture enterprises, and agricultural, fishery, forestry and credit cooperatives.
• Intermediate support organisations that link public bodies with solidarity-economy organisations.
• Federation organisations formed voluntarily by solidarity-economy organisations.
• Social solidarity finance intermediary institutions and other bodies designated by presidential decree.

The Act sets out basic principles requiring these organisations to pursue common interest and social value, operate autonomously and independently from the State, maintain democratic, transparent and open governance, and contribute to local community recovery and circular economy.

Governance and planning

The law creates a layered planning and governance system. The Minister of the Interior and Safety must draw up a five-year national basic plan, after consulting central administrative agencies and gathering local government opinions, and report it to the National Assembly. Provincial and metropolitan governments must prepare their own five-year plans and annual implementation plans.

• A Social Solidarity Economy Development Committee is established under the President to deliberate and coordinate major policies, composed of up to 40 members and lasting five years from the law’s entry into force.
• Regional development committees are set up at provincial and municipal levels.
• A Social Solidarity Economy Policy Center may be designated to carry out research and policy development, and each province must operate a regional support center.
• The Minister must conduct a survey of the sector every five years and publish the results.

Financing and market support

A dedicated chapter on social solidarity finance empowers the Minister to designate intermediary institutions that channel investment, loans and guarantees to solidarity-economy organisations, and to designate a dedicated agency to foster them. The law also introduces regional funds established by local ordinance and private funds run by the organisations themselves.

On the market side, the Act obliges public institutions to promote priority purchase of products and services produced by social solidarity economy enterprises, requiring a purchase target ratio set by presidential decree within their procurement plans. Public bodies must also give priority consideration to these enterprises when consigning public services, and the State and local governments may support land and facility costs, including reduced fees for the use of state and public property.

Transparency and impact

To strengthen accountability, organisations above a certain size must disclose their articles, financial statements, business results and executive information at least once a year. The Minister may build and operate an integrated electronic platform to standardise and publish this information. The law also allows the designation of a Social Solidarity Economy Day and a surrounding week, and provides for awards to individuals with outstanding merit.

For readers, the Act matters because it consolidates a fragmented policy landscape into one coherent regime, giving social enterprises, cooperatives and village enterprises a clearer legal identity, stable financing channels and guaranteed access to public procurement — a significant step for the organisations and communities that make up Korea’s social economy.

Source: Gwanbo (Republic of Korea Official Gazette), No. 21322, 15 September 2026, Section I (official reference: 법률 제21921호).