Transfer from Ministry of Employment and Labor to Ministry of SMEs and Startups
Expanding Support for Fostering Social Enterprises
Independent Assemblyman Choi Hyukjin and Democratic Party of Korea Assemblyman Song Jaebong announced on September 3 that they have jointly sponsored a partial amendment to the Social Enterprise Promotion Act to establish a foundation for the growth of social enterprises.
Social enterprises are companies that simultaneously realize social value and economic performance, such as creating jobs for vulnerable groups and addressing local issues.
The current law designates the Ministry of Employment and Labor as the main supervising agency, which has led to criticism that there are limitations in supporting areas beyond employment, such as startup support, investment, marketing, research and development (R&D), and global expansion.
The amendment proposes transferring the supervisory authority for social enterprises from the Ministry of Employment and Labor to the Ministry of SMEs and Startups, aiming to foster social enterprises and enhance policy efficiency.
Assemblyman Choi stated, "Social enterprises can go beyond being 'welfare-oriented companies' and even enhance national competitiveness. If combined with the business support infrastructure of the Ministry of SMEs and Startups, a solid foundation will be laid for social enterprises to advance into the global market alongside social ventures."
Assemblyman Song said, "Social enterprises are key players in promoting balanced development and inclusive growth in our society. Transferring the supervisory authority will be a turning point in transforming social enterprises into sustainable and innovative companies."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
