Cooperatives Increase Jobs and Improve Working Conditions... Employment of Vulnerable Groups Up 47%

Ministry of Economy and Finance, Results of the 4th Cooperative Survey

[Sejong=Asia Economy Reporter Jusangdon] Recently, the increase in the number of cooperatives has led to a corresponding rise in jobs. Additionally, improvements in working conditions such as the proportion of regular workers and employment insurance enrollment rates have been observed, along with a growing scale of employment for vulnerable groups.

On the 31st, the Ministry of Economy and Finance held the 18th Cooperative Policy Deliberation Committee meeting in writing and reported the results of the 4th Cooperative Survey, which included these findings.

According to the report, as of the end of 2018, the number of registered and authorized cooperatives was 14,526, a 36.8% increase compared to 10,615 in 2016.

Operational and management performance also showed an improving trend. The average number of members increased from 61.6 to 67.0, capital contributions rose from 47 million KRW to 57 million KRW, and sales revenue grew from 270 million KRW to 370 million KRW.

The total number of employees (wage workers + paid executives) in cooperatives reached 31,335 in 2018, marking a 53.5% increase from 20,409 in 2016. Working conditions improved, with the regular worker ratio rising from 66.0% to 70.8% and employment insurance enrollment rate increasing from 78.8% to 82.9%. Notably, employment of vulnerable groups such as persons with disabilities, women with career interruptions, and the elderly increased by 46.7% (from 7,662 to 11,243), demonstrating a significant employment effect for these groups.

An official from the Ministry of Economy and Finance stated, "Since the enactment of the Cooperative Basic Act in December 2012, seven years have passed, confirming the growth potential of cooperatives. However, while cooperatives with longer histories and larger membership have grown, many newly established cooperatives remain small-scale, highlighting the need for scaling up cooperatives."

On the same day, the Ministry approved the 3rd Basic Plan for Cooperatives (2020?2022). The goal of the 3rd Basic Plan is to establish a growth foundation so that cooperatives can transition and settle stably from the 'startup' stage to the 'scale-up' stage, while strengthening cooperative identity through solidarity among cooperatives and growth based on local communities.

First, the government plans to foster specialized cooperative models such as care cooperatives, freelancer cooperatives, and worker cooperative conversion models, while strengthening growth support to enable scaling through business alliances, mergers, and replication and dissemination of successful models.

Additionally, the cooperative support system, including education and consulting, will be reorganized around solidarity organizations. The government plans to promote solidarity by discovering and expanding joint projects among heterogeneous cooperatives and revitalizing mutual aid projects. Various measures will also be prepared to resolve financial procurement difficulties, such as activating the priority investment system, social finance, and strengthening internal procurement, to enable cooperatives to compete equally with general enterprises.

Kim Yongbeom, 1st Vice Minister of the Ministry of Economy and Finance, said, "The government will steadily implement tasks focused on strengthening solidarity and cooperation among cooperatives and the self-sustaining foundation of local communities in this 3rd Basic Plan. We will support many cooperatives to complement the limitations of both the government and the market and contribute to restoring communities."