Ministry designates 33 village enterprises; statutory promotion and support committee launched for first time

[Financial News]  The government will designate 33 village enterprises in the second half of this year and provide new enterprises with up to 50 million won in operating funds. A statutory review body was also launched following the implementation of the Village Enterprise Act in August. The move is intended to shift village enterprise policy, previously run under administrative guidelines, to a support system grounded in law and to set a direction for fostering these enterprises over the next five years.
The Ministry of the Interior and Safety said on the 1st that it held the first Central Village Enterprise Promotion and Support Committee meeting at Government Complex Sejong on October 30, where members discussed designations for the second half of the year and a draft basic plan for promotion and support for 2027–2031.
A total of 33 village enterprises were designated: 20 new enterprises, nine redesignated enterprises and four upgraded enterprises. In line with their stage of growth, they will receive operating funds of 50 million won for new enterprises, 30 million won for redesignated enterprises and 20 million won for upgraded enterprises, respectively.
Village enterprises are businesses in which local residents use local resources to generate income and jobs and address local problems.
The Central Committee launched this time is a statutory review body established under the Village Enterprise Act. It consists of 16 members, including government officials, private-sector experts and people involved in village enterprises, and Professor Jang Jong-ik of Hanshin University was appointed its inaugural chair. The committee will review key matters, including the basic direction of village enterprise policy, the formulation of basic plans and the designation of village enterprises.
The committee also reviewed a draft of the first Basic Plan for the Promotion and Support of Village Enterprises, which will cover 2027 through 2031.
The research team proposed three strategies: strengthening the policy support system, providing tailored support at each growth stage, and bolstering the capacity to address local problems. Committee members discussed securing specialized personnel, expanding sales channels, providing support that takes regional characteristics into account, and encouraging greater youth participation.
The Ministry of the Interior and Safety plans to introduce a program tentatively named “Star Village Enterprise” and provide focused support to outstanding enterprises that have demonstrated their capabilities, with the aim of developing them into leading businesses in their regions.
Hwang Sun-jo, director general of the Social Solidarity Economy Bureau at the Ministry of the Interior and Safety, said, “We will faithfully reflect the views of people in the field and experts in our policies and provide support so that village enterprises can establish themselves as leading players in revitalizing local economies and restoring communities.”

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