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The Social Enterprise Promotion Act

Decent Essays

Introduction
The year of 2017 is the 10th anniversary of the government support enactment for social enterprises. Since Social Enterprise Promotion Act was enacted in 2007, social enterprises in Korea have grown rapidly. The number of social enterprises certified by government has soared from 55 in 2007 to 1,506 in 2015, and the number of preliminary social enterprises preparing for government certification process has reached 1,408 in 2015. Also, the number of employees working for social enterprises increased from 2,539 in 2007 to 33,527 in 2015.
It is generally admitted that Korean government has played an essential role in this rapid growth of social enterprises. Social Enterprise Promotion Act encompasses not only the direct support policy measures such as subsidies, tax exemptions, and the preferential purchase of social enterprise product in public procurement, but also establishing comprehensive support system such as long-term fostering plan at government level, social enterprise certification to secure the quality of social enterprises, and the establishment of the Korea Social Enterprise Promotion Agency as a specialised public institution operated by government budget. Based on this Act, more than £100 million public money has spent on social enterprise support programmes in every year, and about 50% of the social enterprises total sales are spent in public markets such as public procurement.
It is one of the most remarkable social outcomes that the vulnerable

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