Nov.04.2015, YoungSik Kim (SSEN), Seoul Social Economy Special Zone 2015년 11월 4일, 김영식 (서울사회적경제네트워크), 사회적경제특구사업

1. Seoul’s Social Economy
- Localization Strategy

2. The Transformation of Seoul SE Policy: Overview
█ Change of Course:
both the central government and the SMG
Direct
Support
(wage
support)
Indirect
Support
(ecosystem
creation)

3. Social Economy Localization
3
2010 2011
Revision of the Social Enterprise
Promotion Act
-> Political responsibility delegated
from the central government to local
governments
Establishment of Seoul Social
Economy Planning Group
(Now Committee)
-> Policy basis changed due to the
establishment of social economic
ecosystems
Debate over the localization of the
social economy
Establishment of foundation for cooperation
between social economy groups;
Reinforcement of civil-government governance;
Stress on promoting shared community
resources
After 2012
Chosen as a key policy concept due
to the development of local social
economic ecosystems
-> Discovery of local issues,
Capacity building of local SE,
Promotion of policies that support
the vitalization of the local social
economy sector

4. Establishment of Supporting Policies for Seoul’s Individual
Autonomous Districts
4
▣ Seoul City is divided into 25
autonomous districts
- Each gu(district) is a local
government
- Social economy localization
policies are designed and
executed within these
autonomous districts
Eunpyeong-gu
Gangseo-gu
Yangcheon-gu
Guro-gu
Yeongdeungpo-
gu
Geumche
on-gu Gwanak-gu
Dongjak-gu
Seocho-gu
Gangnam-gu
Songpa-gu
Gangdong-gu
Gwangjin-gu
Jungnang-gu
Nowon-gu
Dobong-gu
Gangbuk-gu
Seongbuk-gu
Dongdaemun-gu
Seongdong-gu
Mapo-gu
Seodaemun-gu
Yongsan-gu
Jung-gu
Jongno-gu

5. Concept Map of Social Economy Localization Policies
5
Vision
Establishing sustainable social economic ecosystems within
autonomous districts
Mission
Establishingelementsofthe
ecosystems
Establishingsocialeconomy
partieswithinthearea
Procuringcapacityforchange
Programs
Supportingstart-up
management
Establishingprivatepartnerships Operatingcivilnetworks
Establishingspace
Supportingpromotionand
marketing
Stabilizingintermediate
supportingorganizations
A policy that creates local social economic ecosystems
Facilitatingrelatedprograms
Promotingsocialeconomy
special „social economy zones‟ initiative
Goals
Establishing
Infrastructures
Creating asocial
economy market
Vitalizing
cooperation
Conductingstrategicprograms

6. Local Social Economic Ecosystems Foundation Project - Outline
6
Background
 Seoul’s social economy acceleration, promotion policies have shifted from direct support methods to methods that
establish ecosystems in individual districts
 Developing social economic ecosystem models commensurate with autonomous districts’ characteristics and reinforcing
local capacities, based on civil-civil, civil-government cooperation
Support
 Subsidy of approximately 200 million won (roughly USD180,000) every year after Seoul City’s evaluation
 One-year contract for each project: can be extended up to two times through evaluation, maximum three years of
support
Establishment of
experimental programs that
address local issues and a
shared business foundation
Civil-civil/civil-government
governance
Investigation of local resources
Establishment of local strategies
Promotion of specialized local
businesses
Expansion of community
resources to share
1st Year 2nd Year 3rd Year
Integrated support center in
autonomous districts &
special social economy zones
2 Years after
conclusion
Development of
local human
resources
Development of
local resources
Investigation of
local issues
Creation of local
market
• Retraining SE entrepreneurs
• Cooperation with Wiki Seoul
• Assistance for small civil
groups
• Cultivation and integration of
human/material resources
within the districts
• Supporting foundation of
‘clusters’
• Promoting foundation of
solidarity funds
• Development of issues in
individual districts
• Organization of solidarity
facilitating communities
for the settlement of local
issues
• Organization of ‘apartment
living coops’
• Mediation of public
purchases
• Exploration of civil markets,
etc
Establishment of
local governance
• Systemization of SE
consultative groups in
autonomous districts
• Organization of civil-
government cooperations
• Supporting civil societies

7. Local Social Economic Ecosystems Foundation Project
-Infrastructure for Local Capacity Building
7
Social economic networks in autonomous districts (19)
Local social economic ecosystem founding businesses (11)
Local clusters (9)
(Eunpyeong, Seongbuk, Yeongdeungpo, Nowon, Gwanak, Dongjak,
Yangcheon, Dobong, Seongdong)
Social economy centers in autonomous districts (3)
Coop councils in autonomous districts (9)
Social economic incubating (18)
Community self-sufficiency centers (30)
Integrated social economy support centers in autonomous districts (4)
Preliminary special social economy zones (6)
Oct. 2015
Gangseo-gu
Yangcheon-gu
Guro-gu
Geumche
on-gu
Yeongdeungpo-
gu
Dongjak-gu
Gwanak-gu
Seocho-gu
Gangnam-gu
Songpa-gu
Gangdong-gu
Mapo-gu
Seodaemun-gu
Yongsan-gu
Jung-gu
Seongdong-
gu
Gwangjin-gu
Jungnang-gu
Dongdaemun-gu
Seongbuk-gu
Nowon-gu
Dobong-gu
Gangbuk-gu
Eunpyeong-gu
Jongno-gu

8. Local Social Economic Ecosystems Foundation Project
–Reformation of Urban Industries and Adopting Innovative Models
Re-systemization of urban
manufacturing
Establishment of Geumcheon‟s
sewing fashion platform
Establishment of Seongdong Sewing Coop
• Cooperation with Hanyang Women’s University, fashion technology center
• Establishment of social coop for the vitalization of sewing industries
Promotion of local innovative
businesses
Eunpyeong : Empty House (Gong-ga) Project
Guro, Geumcheon School Coops
• Social housing business
• Turned an Empty House to
the 1st Share House
(‘Gong-Ga Project)(Sept. 2014)
• Management of the Eunpyeong-gu
Empty House Bank
• A few schools opened school coops.
• Guro Younglim Middle School
• Geumcheon Doksan High School
• Gangbuk Samgaksan High School
• Gwanak Samsung High School
7

9. Using unused sites in
municipal districts for
Establishing „social economy
clusters‟
▣ 9 districts selected through
three round of selection process
• First: Eunpyeong, Seongbuk,
Yeongdeungpo, Gwanak
• Second: Nowon, Dongjak, Yangcheon
• Third: Seongdong, Dobong
Local Social Economic Ecosystems Foundation Project
– Expansion of Community Resources
Eunpyeong-
gu
Seongbuk-gu Extended
Space
5th Floor
4th Floor
3rd Floor
2nd Floor
1st Floor
6th Floor
Prepartation
room/storage
Office-1
Guest room-1
Seongbuk Social Economy
Support Center
Seminar room-2
Childcare room Recreation room Childcare room
Community hall
Lecture room
Multi-purpose space
Office-4
T3 deco-tiles (wood)
Panel heating
Noise proof sheet
Corridor
T24 color
double layered
T3 deco-tiles (wood)
Panel heating
Noise proof sheet
Multi-purpose hall
Corridor
Corridor
Light weight steel ceiling frame
T19 noise absorbing texture
Multi-purpose hall for residents‟ self-governing
program
Occupation space, guest rooms
Office space for firms
Integrated support office, education space
District daycare center
Resting space and café, community hall, meeting room
8

10. Searching for Local Strategic Businesses – Special Social Economy Zones
The shift from providing services to providing solutions to local issues!! Establishment of region-based special economy zones
Effects
Main local issues
resolved
Living ecosystem
established
Capacity of SE
strengthened
Special zone
model proliferated
Strategies
Finance/facilities
System
improvement
Governance
Administrative
support
Targets
(Types)
Zone-based type (Large living sphere)
Neighborhood living type
(small living sphere)
Industry-based type
Tasks Process
Areas of
Support
Specialized regional
solution strategy
Regional innovation
and smart
specialization
strategy
Promotion of local social
problem-solving, strategic
businesses
Expand impact of social economy
on civic life
Establishment of operation bases
and networks
Procuring self-sufficiency and
sustainability through asset
management methods
Introduction of strategies
connecting, changing region-based
businesses and ready markets
Special zone TF
(Oct. 2014~Feb.
2015)
Workshop
(Feb. 2015)
Special zone
foundation
strategy
(Mar. 2015)
Individual
regions‟
policy
meetings
(Finding
agendas)
(Apr.~Jul.2015)
Confirmation
of
experimental
business areas
(Sept. 2015)
Commenced
experimental
businesses
(1~2 sites)
(Oct. 2015~)
Public
experimental
business
areas contest
(Aug. 2015)
1. Analysis of region’s
characteristics and
potential
2. Setting governance
3. Setting regions’
future visions
6. Monitoring and
assessment
4. Setting order of
priority
5. Policy Mix
9

11. Special Social Economy Zones – Finding Business Models
11
Localissues
Local
capacities
Processof
finding
agendas
Section
Specialzone
model
 Hasthelargestnumberof„NewTowndevelopmentdistricts‟
amongSeoul‟s25autonomousdistricts
 Conflictintensifiedamongresidentsduetodevelopmentplan
 Hassomeconstructioncapacitysuchaslocalcarpentersand
constructionsocialenterprises(e.g.NanumHousing)
 Youthsocialenterprisesactive
 Civil-governmentcooperativecapacityisrelativelyhigh
 OneofNewTownDistricts(Jangwi-dongdistrict13)isselected
asexperimentalurbanrestorationbusiness,not
„redevelopment‟
 Experiencedmultiplecasesofurbanrestorationincluding
JangsuVillage,AngelVillage,etc
Seongbuk-gu
 Establishinganewcorporationsthatwillleadrestorationprojects
 Anactivesemi-industrialdistrict,
 Ranksthe3rd inSeoulintermsofitsnumberofmanufacturers
 Declineofindustries;nowmainlysmallscalesewing,handmade
shoesindustries
 Advancedskillsoflocaltraders
 EstablishmentoftheKoreaFashionSewingSocialCoop
 Cooperativecapacityofcivil-governmentinstitutionsexist
 Sewingvitalizationprojectheadedbylocalsocialeconomic
ecosystemfoundinggroup
 Foundeda“fashiontechnologycenter”throughjoint
cooperationwithcivil-governmentinstitutionsincludingthe
Seongdong-guOfficeandHanyangWomen‟sUniversity
Seongdong-gu
 EstablishmentofsocialfashionecosysteminSeongdong

12. Special Social Economy Zones – Six examples
Seongbuk-gu
Nowon-gu
Seongdong-gu
Gwangjin-gu
Gwanak-gu
Mapo-gu
Established and
managed social service
centers that integrate
care+food
service+culture &
art+urban regeneration
Promoted social economic
zones focusing on local
issues (circulation of
resources, adolescents,
care)
Established a “social
fashion ecosystem”
based on local industrial
sites
Developed total care
service businesses by
creating social economic
resource clusters within
the area
Developed a social
economic care model
within the area with the
motto — “Gwanak where
children are happy,
Gwanak where dreams are
made together”
Developed culture &
arts tourism, experience
business models based
in areas surrounding
Hongik University
11

13. Flow of Social Economy Localization Policies
13
Local Ecosystem
Building
Program
Finding
local issues
•
Reinforcing
local
capacities
Community
Business
Incubator
Vitalization of
Coops
Vitalization
of local
sectors
Reinforcement of civil-civil
networks and civil-government
cooperation
•
Building ecosystems
(talent, market, capital)
•
Formation of civil sympathy
Integration with local community
•
Monitoring consultation for
establishment
Monitoring consultation for
establishment
Specialization
of Autonomous
Districts
Vitalization
of
businesses
Businesses that promote market
development
Integrated support
centers in
autonomous districts
(Preliminary) Special
Social Economy
Zone
Finding local strategic
projects
Foundation of
Clusters
Asset
developing
strategy
Building social economy spaces
within autonomous districts
Foundation of
Clusters
ProgramnameAim Program content
2012~2015 2015~
Program name
Social Economy
Incubator
Operation of
Clusters
AutonomousDistricts
SpecializationProject
▣ Integrated support centers in autonomous districts
- Supporting integrated planning for the
vitalization of social economy in autonomous
districts
- Providing support by uniting assistance policies
from different sectors
▣ Special social economy zones
- Finding and settling local issues with social
economic methods based on experience acquired
in the localization process
- Promoting innovative local social economy
businesses

14. Principles of Localization Policies
14
Reflecting local needs and preparations
(The principle of need-base approach)
 Necessary to focus on reinforcing independent capacity, the core element among ecosystem
components (people, capital, markets, knowledge/technology, common platforms, etc)
 Exercising caution against impatience due to other political interests
Cooperative governance based on autonomous governance
(The principle of subsidiarity)
 Policy assistance creates a pump effect and promotes principles of self-support and self-governance
 Decentralization of power and resources to primarily establish cooperative foundations for autonomous
districts
Based on an agreement about horizontal partnerships and social duty fulfillment
(The principle of reciprocity)
 Necessary to fulfill social duties of the entire social economy based on civil reciprocity
 Partnerships between various local social groups must be based on horizontal cooperation and
mediation
Must be accompanied by administrative innovation
 A flexible and effective management capacity, accompanied by administrative innovation in
administrative departments or budget execution systems, is required during growth periods, when
public policies and finance are crucial