Background and Purpose
○Because of the overall market and government failures in rural Korea, many people have been socially excluded. In the fight against social exclusion, social economy practices have drawn much attention. This study aims to suggest social economy strategies for inclusive growth and social innovation in rural Korea. This study is a two-year project. In its first year, we research the operation status of social economy organizations and their innovative practices.

Research Method
○We surveyed 504 social economy organizations. We interviewed people working in social economy organizations to explain the conditions of those organizations and their innovative features.

Key Findings
○In many rural communities, the practices of social economy organizations were, by themselves, collective actions to fight against the reality of social exclusion. In some rural communities, for the disabled, the elderly, and children, who have not been cared for by public care services, residents established ‘care cooperatives.’ In other cases, farmers began to participate in social farming networks. In other communities, residents began to engage in public education by organizing the ‘education cooperative in community.’ For the construction of nested markets where small farm households can sell agricultural products, ‘the local food cooperative movement’ has been actively developed in many rural communities.

○Based on the above findings, we find the following. First, people living in rural communities tend to start social economy to satisfy their own needs, especially in areas where market and government failures are overlapped. Second, in doing so, the reality of social exclusion is recognized as individuals’ problems as well as the community’s problem. Third, the social economy organizations’ actions are related to public agenda. However, public sectors such as local governments generally do not understand the significance of social economy.

Policy Suggestions
○The Government should encourage the innovative and the experimental practices of social economy organizations that emerge autonomously in rural communities, based on the needs of people. And, the government should facilitate networking between various social economy organizations at the local levels. The rural policy should be linked to the logic of social economy, such as autonomy, cooperation, and solidarity. The governance at the local level and partnership between local governments and social economy organizations can not be overemphasized.


Researchers: Kim Jeongseop, Kim Meebok, Kim SueLynn, Kim Jeongseung
Research period: 2021. 1. ~ 2021. 10.
E-mail address: jskkjs@krei.re.kr