Regional Vitality 'Village Enterprise Act' Passed by National Assembly After 15 Years... 1726 Operated Nationwide

[Financial News]  


The Ministry of the Interior and Safety announced on the 23rd that the 'Act on the Promotion and Support of Village Enterprises (hereinafter referred to as the Village Enterprise Act)', which includes the designation and fostering of village enterprises, administrative and financial support, etc., was passed in the plenary session of the National Assembly.
Village enterprises refer to village-level businesses that create income and jobs through profit-making projects utilizing various local resources and solve regional issues such as population extinction.
Since 2011, 1726 have been operated nationwide according to the guidelines of the Ministry of the Interior and Safety, but due to insufficient legal grounds, there have been many requests for the establishment of a legal basis for systematic growth and development, as there was uncertainty in the field regarding the maintenance of village enterprises.
The Village Enterprise Act includes ▲ establishment and implementation of basic and implementation plans ▲ conducting surveys on activities and business status ▲ establishment of a committee for the promotion and support of village enterprises ▲ designation and administrative and financial support for village enterprises ▲ establishment and designation of support institutions by province.
The Ministry of the Interior and Safety conveyed that preferential grounds for village enterprises established and operated in areas with decreasing populations and youth village enterprises are also included, which is expected to give momentum to effective support policies for balanced regional development and response to regional extinction.
According to the Ministry of the Interior and Safety's survey results, the number of village enterprises nationwide as of the end of 2024 is 1,726, a 4.1% decrease from 1,800 the previous year. During the same period, total sales decreased from 309 billion won to 307 billion won, a 0.6% decrease, indicating that village enterprise activities have been somewhat contracted over the past two years due to reduced financial support and insufficient legal grounds.
However, the Ministry of the Interior and Safety revealed that in areas with decreasing populations, the survival rate compared to the designation of village enterprises was higher, indicating that the village enterprise policy is effective in these areas.
The Ministry of the Interior and Safety plans to prepare data-based support measures with high effectiveness in the field by utilizing the survey results with the enactment of the law.
Additionally, the Ministry plans to specify customized support, such as preferential treatment for areas with decreasing populations and youth village enterprises under the Village Enterprise Act, so that village enterprises can effectively respond to the crisis of regional extinction.
The Village Enterprise Act will be implemented after preparations, including subordinate legislation, within one year.

ktitk@fnnews.com Kim Taekyung Reporter