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The Problems and Policy Recommendation on The Support Policy for Social Enterprises in Korea

Kim Hyewon 1

1한국교원대학교

Accredited

ABSTRACT

The support policy for social enterprise in Korea has focused on job creation measures. The main problems of social enterprise support policy are as below. Firstly, the share of direct subsidy for job creation is too big and the pressure of over-employment is high. Secondly, indirect supports such as financial supports and sales promotion are under-developed. Thirdly, the support for various types of work integration social enterprise(WISE) is rare. Due to job creation - centred policy, large reduction of employment occured in some social enterprises which had depended heavily on government's employment support and could not have got sound business models. Government had better reduce the share of direct job creation and expand the indirect subsidy like reducing social insurance contribution. Moreover the fund for third-sector organizations which supply public service and social enterprises need to be created. In order to develop WISEs which help hard-to-place jobseekers get into regular labor market, active labor market policy should be redesigned.

Citation status

* References for papers published after 2022 are currently being built.