In South Korea, social enterprises (사회적기업) can obtain a formal certification that recognizes their measurable social contribution alongside sustainable business operations. Below is a concise overview of what it is and who qualifies.
What is a Social Enterprise?
A social enterprise is a business that pursues clearly defined social goals while conducting commercial activities such as producing or selling goods and services.
Who can receive this certification?
Certification, granted by the Minister of Employment and Labor, is available to organizations that meet one of the following types:
- Employment-Focused: Provides jobs to vulnerable groups.
- Social Services-Focused: Delivers social services to those in need.
- Community Contribution: Supports and improves local communities.
- Hybrid: Combines employment provision with social service delivery.
- Other: For initiatives whose social impact is hard to quantify but demonstrably present.
Key benefits of the certification
Certified social enterprises may receive support for labor costs and social insurance contributions, tax incentives (e.g., partial corporate/income tax reductions), funding for facilities, and professional management assistance (operations, accounting, labor management).
What does the certification indicate about the business?
Social Enterprise certification signals that the organization meets government criteria for public-interest purpose, governance, transparency, and sustainable operations, and that its social outcomes are verified through a formal review process. It is an official, third-party validation that the enterprise delivers measurable social value—not just a mission statement.
Coverage in KOBDi: The KOBDi database includes businesses certified as Social Enterprises (사회적기업). This information appears on each Business Profile page, and companies with this certification can be found via the KOBDi Korea Industry Search.