South Korea's agriculture ministry designates seven rural pre-social enterprises
In short
South Korea's Ministry of Agriculture, Food and Rural Affairs has newly designated seven "agriculture and rural-type pre-social enterprises". The ministry said they will expand care for vulnerable groups or create jobs through local produce. A total of 215 such firms have been designated since 2012, and 53 of them are certified social enterprises.
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South Korea's Ministry of Agriculture, Food and Rural Affairs has newly designated seven "agriculture and rural-type pre-social enterprises" (농업·농촌형 예비사회적기업). Newsis and Yonhap said the ministry announced it on the 22nd, while Asia Economy gave the 23rd. The ministry said the designations are meant to address care gaps, a shortage of jobs and stagnant farm household income in rural areas. [ 1 , 2 , 3 , 4 ]
Yonhap listed the seven as Ugok Bombom Social Cooperative (우곡봄봄사회적협동조합), the agricultural corporation Kkotdam (꽃담), and the agricultural companies Ageosae (악어새), Goseonwon (고선원), Ondo Farm (온도농장) and Cheongtaesan Farm (청태산농장), plus Aseongon (아성온). The other outlets named five of the seven. [ 3 ]
Ugok Bombom in Goryeong, North Gyeongsang, Kkotdam in Hamyang and Ondo Farm in Gimje, North Jeolla, are to secure resources from central and local governments, local welfare institutions and related groups. They plan to use these to expand care services for vulnerable groups and strengthen links between institutions and public-private governance, which the ministry said would address gaps in rural welfare. [ 1 , 2 , 4 ]
Ageosae in Yeongju and Goseonwon in Suncheon are to use local produce to create jobs for residents and raise farm incomes. They are building joint production and sales systems centred on producers with weak competitiveness. Asia Economy and CBS NoCut News described them as playing a core hub role in a mutually supportive local economy. [ 1 , 2 , 4 ]
Jeon Han-yeong, the ministry's director general for rural policy, said the designated firms "go beyond simple profit-seeking" and are "key players" putting the value of mutual benefit and solidarity into practice. He said he expects them to play a positive role in maximising the value of rural areas and making them places everyone wants to live. In Yonhap's account, a ministry official said he expects the firms to practise mutual benefit and solidarity. [ 1 , 2 , 3 , 4 ]
The ministry introduced the designation system in 2012 to foster firms that use rural resources such as farm produce production and distribution, rural tourism and care to create jobs and improve welfare. So far 215 pre-social enterprises have been designated and 53 of them are certified as social enterprises. Designated firms can join financial support, loan and investment, and sales support programmes run by bodies including the Ministry of Employment and Labor and the Korea Social Enterprise Promotion Agency. They can also use the "Promising Enterprise Step-Up" programme. Asia Economy said the eligibility covers three years. [ 1 , 2 , 3 , 4 ]
Why it matters
Designation makes the seven firms eligible for financial support, loan and investment programmes and sales support run by bodies such as the Ministry of Employment and Labor. The ministry says the aim is to address care gaps, a shortage of jobs and stagnant farm incomes in rural areas.
Key facts
- The Ministry of Agriculture, Food and Rural Affairs newly designated seven "agriculture and rural-type pre-social enterprises". [ 1 , 2 , 3 , 4 ]
- Three of them, in Goryeong, Hamyang and Gimje, are to expand care services for vulnerable groups. [ 1 , 2 , 4 ]
- Two others, in Yeongju and Suncheon, are to create local jobs and raise farm incomes by using local produce and building joint production and sales systems. [ 1 , 2 , 4 ]
- Since the system began in 2012, 215 pre-social enterprises have been designated, and 53 of them are certified as social enterprises. [ 1 , 2 , 3 , 4 ]
- Designated firms can take part in financial support, loan and investment, and sales support programmes and a growth programme called "Promising Enterprise Step-Up". [ 1 , 2 , 3 , 4 ]
Confirmed by several sources
- The ministry designated seven new agriculture and rural-type pre-social enterprises, according to Yonhap, Newsis, Asia Economy and CBS NoCut News. [ 1 , 2 , 3 , 4 ]
- The ministry introduced the designation system in 2012; 215 enterprises have been designated so far and 53 of them are certified social enterprises. [ 1 , 2 , 3 , 4 ]
- Jeon Han-yeong, the ministry's director general for rural policy, said the designated firms go beyond simple profit-seeking and put the value of mutual benefit and solidarity into practice. [ 1 , 2 , 4 ]
Still unclear
- The date of the ministry's announcement. Newsis and Yonhap say the ministry announced it on the 22nd, while Asia Economy says the 23rd.
- The names of all seven enterprises. Only Yonhap lists all seven; the other outlets name five of them.
- Whether designation lasts three years. Only Asia Economy says designated firms are eligible for support for three years.