Background of Research
In rural areas, as people get older and fewer rapidly, the community functions, such as local resource control, care for the weak, and collaboration based on local or blood connections as they were in the past, are on the decline. Because of FTA and market opening under the WTO system, the rural areas are suffering income and job reduction. On top of this, the gap between urban and rural areas and even between farmers themselves is expanding. Especially the number of farmers whose income falls short of household expenditure is also increasing.
It is very hard for poor farmers or manufacturers to plan income expansion or local social participation apart from their daily economic activities. The alternative is to promote local revitalization by using existing resources through organization of local units. In the background where new types of businesses emerge on the basis of local community, there come diverse and complex rural problems such as sluggish local agriculture and commerce, aging and thus increasing demand for welfare, and yet they are hard for individual companies or government services to handle as in the past.
This study has the following purposes: 1) comprehend the current situation of community business (CB) and its roles, 2) analyze its ripple effects on the local society, and 3) suggest the expandability of CB that can create local jobs, enhance the value added, stimulate the stagnant rural economy, improve life quality, solve deepening rural economic and social problems, and finally realize the 'balanced society'.

Method of Research
The research methods used in this study are literature review, survey of the actual conditions to develop diverse models, classification and evaluation of cases, identification of exemplary cases, and verification of their expandability. For the overseas study, Japanese cases are studied as the country's structure and problems are similar to Korea's. Field debates are also held to identify the actual conditions and local cases, collect residents' opinions, and find local resources. The research society, in the meantime, is inviting related experts to share knowledge on specific themes.

Research Results and Implications
In the second year, the CB of 'rural village-type' is analyzed in rural and urban areas. Its purpose is to promote social welfare, to recover the community functions and to preserve the environmental resources. In Chapter 2, the agri-business(AB) that appeared lately in agricultural areas is introduced, and its types and conditions of sustainability are mentioned. Chapter 3 deals with the role of cooperatives for the revitalization of community or local society. In Chapter 4, the current situation of local resources for CB is summarized. In Chapter 5, the policy projects related with CB are evaluated through local case studies. Chapter 6 deals with the increasing demand for social welfare and development direction of CB. In Chapter 7, the current situation of urban agriculture that has been expanding lately is examined and its relation with the revitalization of local community is verified. Finally, in Chapter 8, the role and the task of rural-type CB are suggested.
For the activation of CB, the following should be provided: ① voluntary participation of local residents and leaders in creation, development and settlement of CB, ② active participation of NH among diverse local participants, ③ development of indigenous resources into products and services, ④ development of diverse business models such as agricultural production (primary industry), processing of special products (secondary industry), distribution of agricultural products, and tourism and exchanges (tertiary industry), and ⑤ restoration of CB achievements to the local society through welfare services.
Researchers: Tae-Gon Kim, Jeong-Seop Kim, Joo-Nyung Heo and
Ye-Sol Kim
Research Period: 2012. 1～2012. 12.
E-mail address: taegon@krei.re.kr