Chungnam Province to Expand Its Social and Solidarity Economy Ecosystem ... 16 Stakeholders Sign the Nation’s First “Grand Pact for Solidarity and Cooperation”

[Financial News, Hongseong = Reporter Kim Won-jun] Chungnam Province has joined hands with local social and solidarity economy stakeholders to build the nation’s first large-scale framework for solidarity and cooperation, aiming to address local community challenges and promote sustainable development. The plan is to overcome crises facing local areas, including population decline and polarization, by moving beyond the limitations of a large-business-centered “trickle-down economy” and embracing a “fountain economy” centered on residents and local communities.
 Chungnam Province said on the 5th that it had signed an agreement at the Chungnam Social Economy Innovation Town in Cheongyang-gun with 13 local social and solidarity economy stakeholders and three national movement organizations. The agreement is titled “Solidarity and Cooperation for Promoting Chungnam’s Social and Solidarity Economy and the Sustainable Development of the Region.”
 The social and solidarity economy stakeholders participating in the agreement include the Chungnam Social Enterprise Council, the Chungnam Village Enterprise Council, the Chungnam-Sejong Self-Support Enterprise Association, and the Chungnam Dasum Social Cooperative Federation. Also participating were the regional offices of the central organizations of the National Agricultural Cooperative Federation (NACF), the National Federation of Fisheries Cooperatives, Shinhyup, forestry cooperatives, and the Korean Federation of Community Credit Cooperatives; the Chungnam Regional Office of the Korea Federation of SMEs; the Chungnam Venture Association; Pulmu Consumer Cooperative; and the Chungnam Leaf Tobacco Growers Cooperative, bringing the total to 13 organizations. Three national movement organizations—the Saemaul Association of Chungnam Province, the Chungnam Provincial Council of the Movement for a Better Living, and the Chungnam Chapter of the Korea Freedom Federation—also joined the effort.
 The social and solidarity economy is a model that puts the value of people and communities first, conducts economic activity through cooperation and solidarity, and shares the resulting benefits with members of society. It is emerging as an alternative that can address the limitations of market competition.
 Under the agreement, Chungnam Province and the participating institutions will work together to develop policies and joint projects to promote the social and solidarity economy; share related information, materials, and policy outcomes; expand organizations’ market access and support their sustainable growth; improve access to finance and connect organizations with financial support; and strengthen capabilities through initiatives such as education, publicity, and consulting. They plan to turn the agreement into concrete projects by designating contacts at each institution and operating a working-level consultative body.
 Chungnam Governor Park Soo-hyun emphasized, “Chungnam aims to move beyond a large-business-centered ‘trickle-down economy’ and toward a ‘fountain economy’ in which the capabilities of residents and local communities rise from the ground up.” He added, “When the wisdom and capabilities of stakeholders who have sustained their communities for a long time are brought together, we will create a distinctive, sustainable model of cooperation unique to Chungnam.”
 A forum held after the signing ceremony presented the policy directions of the government and Chungnam Province for the social and solidarity economy. Participants explored ways to address pressing challenges, including population decline, the disappearance of local communities, gaps in care, and declining vitality in rural and fishing communities. The accompanying gathering also featured three forum sessions on topics including impact forums, local business strategies, and the potential of arts and culture communities.
 Chungnam Province became the first in the nation to establish a Social and Solidarity Economy Bureau, laying the groundwork for the integrated implementation of policies and projects that had previously been dispersed. The province plans to expand public-private cooperation into key policy areas such as care, housing, energy, and rural and fishing communities after enacting a basic ordinance on the social and solidarity economy and drawing up a mid- to long-term plan.
 Meanwhile, the Social and Solidarity Economy Framework Act, which brings social and solidarity economy policies under a single framework, passed a plenary session of the National Assembly on August 20. This came 13 years after the first bill was introduced in 2014. The act is scheduled to take effect next March, following State Council approval and promulgation. It provides for the establishment of a committee directly under the President, the formulation of a five-year basic plan, a legal basis for “social solidarity finance” encompassing investment, loans, and guarantees, and preferential purchasing by public institutions. In effect, it lays the institutional foundation for integrating a support system that had been divided among government ministries and separate laws. Chungnam Province’s agreement and its push to enact an ordinance are aligned with these institutional reforms at the national level.
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