Builds on South Korea’s Social Enterprise Promotion Act (SEPA): The 2024 Enforcement Decree reinforces South Korea’s Social Enterprise Promotion Act (SEPA), first adopted in 2007, which laid the foundation for fostering social enterprises as a means to improve community well-being and generate employment for vulnerable groups. A cornerstone of SEPA is its definition of what constitutes a social enterprise and the establishment of a certification system managed by the Ministry of Employment and Labour. This certification grants access to various forms of government support -including tax reductions- ensuring that mission-driven organisations can thrive within a clear and supportive legal framework.

Empowers Local Governments: While the Ministry of Employment and Labor, through the Korea Social Enterprise Promotion Agency (KoSEA), serves as the central authority overseeing the Social Enterprise Promotion Act, the 2024 Enforcement Decree empowers local governments to develop and execute five-year support plans tailored to their own provinces and municipalities. This decentralised model enables local governments to address context-specific challenges while operating within a unified national policy framework and remaining accountable to central institutions.