In its proposed budget for next year, the government has allocated 176 billion won, 9% higher than this year, for the promotion of social enterprises, including management support and market-pioneering, with a view to raising their competitiveness.

A social enterprise means an enterprise that employs vulnerable people, such as the elderly and disabled, to provide cleaning services, care services or other social services in such fields as culture and arts, or to produce or sell various goods including agricultural and industrial ones.

Social enterprises pursue the following social goals at the same time : making profits from business activities, creating jobs for vulnerable people and providing social services.

Social enterprises, whose number has steadily increased in recent years, tend to be less able to create profits than general enterprises because of their relatively weak business foundations.

   * No. of social enterprises : 501 in 2010 → 800 (2011's target) → 1,000 (2012's target)

In particular, those social enterprises for whom government support for labor costs has ended may see a deterioration in their financial situation, and thus be forced to cut their workforce, which in turn would lead to reduced social services. That is why building an ecosystem which enables social enterprises to become sustainable is important.

   * The government subsidizes the labor costs of prospective or certified social enterprises for up to five years so that they can create new jobs.

Therefore, the government came up with measures to promote social enterprises in various ways, and is currently implementing them. Next year's budget will focus on strengthening social enterprises' business foundations, such as pioneering markets for their products, to ensure their sustainability.

   * Budget for promotion of social enterprises : 161.5 billion won in 2011 → 176 billion won in 2012, up 14.5 billion won or 9% over this year

  A budget of 1.4 billion won will be spent on setting up an online product information site and launching a joint marketplace in order to advertise products made by social enterprises, to remove their difficulties in finding sales routes and to provide convenience for consumers.

   * 400 million won for setting up an online product information site; and 1 billion won for launching a joint marketplace

The budget for providing information and consulting to social enterprises with regard to business management, taxation, labor affairs and accounting will be increased by 33.5% in 2012 compared with this year.

   * No. of social enterprises to be supported : 2.9 billion won (467 enterprises) in 2011 → 4 billion won (623 enterprises) in 2012

Support for business development costs will be expanded to improve social enterprises' business skills in the areas of technological development, R&D, advertising, marketing and so on.

   * No. of social enterprises to be supported : 16.5 billion won (918 enterprises) in 2011 → 17.5 billion won (917 enterprises) in 2012

In addition, support for the labor costs of social enterprises will be expanded to help them create jobs.

   * No. of persons to be newly employed : 13,877 persons in 2011 → 15,000 persons in 2012, up 1,123 or 8.1% over this year

The government will continue to provide active support to ensure the qualitative improvement and sustainability of social enterprises.