@article{ART003207195},
author={Jungyeun Kim and YoonJoo Jang},
title={Legal Issues in the Establishment and Restructuring of Non-Profit Corporations: An Analysis of Case Studies},
journal={Civil Society and NGO},
issn={1599-8568},
year={2025},
volume={23},
number={1},
pages={247-290}
TY - JOUR
AU - Jungyeun Kim
AU - YoonJoo Jang
TI - Legal Issues in the Establishment and Restructuring of Non-Profit Corporations: An Analysis of Case Studies
JO - Civil Society and NGO
PY - 2025
VL - 23
IS - 1
PB - The Third Sector Institute
SP - 247
EP - 290
SN - 1599-8568
AB - This study examines the limitations of current legal frameworks governing non-profit corporations in South Korea through in-depth interviews with six experts who have directly participated in or provided consultation during establishment and organizational restructuring processes. The research identifies several significant challenges in the existing system. First, the requirements for establishing non-profit corporations remain unclear, creating practical difficulties regarding legal forms and procedural steps. Second, the current legal framework lacks foundational provisions to accommodate organizational division needs, despite growing demands for such restructuring as non-profit organizations evolve. The study analyzes two historic cases of non-profit division ('A'-'B' and 'B'-'C') that have managed to operate successfully despite the absence of clear legal foundations, highlighting the instability of relying solely on contracts between parties and supervisory authority approval.
The findings suggest that an urgent transition to a normative principle for establishing non-profit corporations under civil law is necessary, along with institutional improvements to overcome procedural delays caused by arbitrary judgments of supervisory authorities. Additionally, successful non-profit restructuring requires effective communication during the decision-making process, proper valuation of division target sectors, comprehensive post-division planning, and the establishment of governance structures appropriate to the size and characteristics of the post-division organization. The study concludes that in the non-profit sector, organizational characteristics such as members' motivation to participate and active communication are often more critical to achieving goals than the formal systems themselves, emphasizing the need for legal reforms that accommodate these distinctive features.
KW - Non-profit corporation establishment;Non-profit corporation division;Civil law amendment;Non-profit corporation operation;Supervisory authority
DO -
UR -
ER -
Jungyeun Kim and YoonJoo Jang. (2025). Legal Issues in the Establishment and Restructuring of Non-Profit Corporations: An Analysis of Case Studies. Civil Society and NGO, 23(1), 247-290.
Jungyeun Kim and YoonJoo Jang. 2025, "Legal Issues in the Establishment and Restructuring of Non-Profit Corporations: An Analysis of Case Studies", Civil Society and NGO, vol.23, no.1 pp.247-290.
Jungyeun Kim, YoonJoo Jang "Legal Issues in the Establishment and Restructuring of Non-Profit Corporations: An Analysis of Case Studies" Civil Society and NGO 23.1 pp.247-290 (2025) : 247.
Jungyeun Kim, YoonJoo Jang. Legal Issues in the Establishment and Restructuring of Non-Profit Corporations: An Analysis of Case Studies. 2025; 23(1), 247-290.
Jungyeun Kim and YoonJoo Jang. "Legal Issues in the Establishment and Restructuring of Non-Profit Corporations: An Analysis of Case Studies" Civil Society and NGO 23, no.1 (2025) : 247-290.
Jungyeun Kim; YoonJoo Jang. Legal Issues in the Establishment and Restructuring of Non-Profit Corporations: An Analysis of Case Studies. Civil Society and NGO, 23(1), 247-290.
Jungyeun Kim; YoonJoo Jang. Legal Issues in the Establishment and Restructuring of Non-Profit Corporations: An Analysis of Case Studies. Civil Society and NGO. 2025; 23(1) 247-290.
Jungyeun Kim, YoonJoo Jang. Legal Issues in the Establishment and Restructuring of Non-Profit Corporations: An Analysis of Case Studies. 2025; 23(1), 247-290.
Jungyeun Kim and YoonJoo Jang. "Legal Issues in the Establishment and Restructuring of Non-Profit Corporations: An Analysis of Case Studies" Civil Society and NGO 23, no.1 (2025) : 247-290.
