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ENFORCEMENT DECREE OF THE SOCIAL ENTERPRISE PROMOTION ACT

[Enforcement Date 01. Jan, 2019.] [Presidential Decree No.29293, 20. Nov, 2018.,
Partial Amendment]

고용노동부 (사회적기업과)044-202-7420

법제처 국가법령정보센터
www.law.go.kr
2024.04.14
 「ENFORCEMENT DECREE OF THE SOCIAL ENTERPRISE PROMOTION ACT」

ENFORCEMENT DECREE OF THE SOCIAL ENTERPRISE PROMOTION ACT

[Enforcement Date 01. Jan, 2019.] [Presidential Decree No.29293, 20. Nov, 2018., Partial Amendment]
고용노동부 (사회적기업과) 044-202-7420

Article 1 (Purpose) The purpose of this Decree is to prescribe matters delegated by the Social
Enterprise Promotion Act and matters necessary for the enforcement of said Act.

Article 2 (Detailed Standards for Vulnerable Groups) “Vulnerable social group” (hereinafter
referred to as "vulnerable group") in subparagraph 2 of Article 2 of the Social Enterprise
Promotion Act (hereinafter referred to as the "Act") means any of the following:
1. A person whose monthly average household income does not exceed 60/100 of the
national average household income;
2. An aged person referred to in subparagraph 1 of Article 2 of the Act on Prohibition of
Age Discrimination in Employment and Elderly Employment Promotion;
3. A disabled person referred to in subparagraph 1 of Article 2 of the Act on the
Employment Promotion and Vocational Rehabilitation of Persons with Disabilities;
4. A victim of sexual trafficking referred to in Article 2 (1) 4 of the Act on the Punishment
of Arrangement of Commercial Sex Acts, Etc.;
5. A person who is eligible for an incentive to promote employment under Article 26 (1)
and attached Table 1 of the Enforcement Decree of the Employment Insurance Act,
among youths referred to in subparagraph 1 of Article 2 of the Special Act on the
Promotion of Youth Employment or among career-interrupted women referred to in
subparagraph 1 of Article 2 of the Act on Promotion of Economic Activities of Career-
Interrupted Women, Etc.;
6. A North Korean refugee referred to in subparagraph 1 of Article 2 of the North Korean
Refugees Protection and Settlement Support Act;
7. A victim referred to in subparagraph 3 of Article 2 of the Act on the Act on the
Prevention of Domestic Violence and Protection, etc. of Victims;
8. A person eligible for protection referred to in Articles 5 and 5-2 of the Single-Parent
Family Support Act;
9. A marriage-based immigrant referred to in subparagraph 3 of Article 2 of the
Framework Act on Treatment of Foreigners Residing in the Republic of Korea;

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10. A person eligible for rehabilitation referred to in Article 3 (3) of the Act on Probation,
Etc.;
11. Any of the following persons:
(a) Where a victim eligible for relief referred to in Article 16 of the Crime Victim
Protection Act suffers from a disability, such victim eligible for relief, his/her spouse,
lineal blood-relatives, and brothers and sisters who reside with such victim eligible for
relief;
(b) Where a victim eligible for relief referred to in Article 16 of the Crime Victim
Protection Act dies, his/her spouse, lineal blood-relatives, and brothers and sisters who
have resided with such victim eligible for relief;
12. Any other person recognized by the Minister of Employment and Labor as belonging
to a vulnerable group after deliberation by the employment policy deliberative council
under Article 10 of the Framework Act on Employment Policy (hereinafter referred to as
"policy deliberative council") in consideration of the situation of employment, etc., such
as a person who has been unemployed for at least one year.
[This Article Wholly Amended by Presidential Decree No. 22520, Dec. 9, 2010]

Article 3 (Kinds of Social Services) “Services in the fields prescribed by Presidential Decree” in
subparagraph 3 of Article 2 of the Act means any of the following:
1. A child care service;
2. An art, tourism, and sports service;
3. A forest conservation and management service;
4. A nursing and housekeeping support service;
5. A service relating to the preservation and utilization of cultural heritage;
6. A business facility management service, including cleaning;
7. An employment service referred to in subparagraph 9 of Article 2-2 of the Employment
Security Act;
8. Other services recognized by the Minister of Employment and Labor after deliberation
by the policy deliberative council.
[This Article Wholly Amended by Presidential Decree No. 22520, Dec. 9, 2010]

Article 4 Deleted. <by Presidential Decree No. 22520, Dec. 9, 2010>

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Article 5 Deleted. <by Presidential Decree No. 22520, Dec. 9, 2010>

Article 6 (Matters to Be Included in Master Plan for Promotion of Social Enterprises) “Matters
prescribed by Presidential Decree” in Article 5 (2) 4 of the Act means the following matters:
1. Incorporating a foundation to support social enterprises;
2. Training social enterprise managers, and educating and training social enterprise
workers;
3. Financing needed to push forward a master plan for the promotion of social enterprises
under Article 5 of the Act (hereinafter referred to as "master plan");
4. Other important measures relating to social enterprises.
[This Article Wholly Amended by Presidential Decree No. 22520, Dec. 9, 2010]

Article 7 (Formulation and Implementation of Master Plan, etc.) (1) Where necessary to
formulate and implement a master plan pursuant to Article 5 (4) of the Act and annual
implementation plans subordinate to the master plan, the Minister of Employment and
Labor may request the heads of relevant central administrative agencies or the heads of
local governments for cooperation in the provision, etc., of relevant information or data.
(2) The heads of relevant central administrative agencies or the heads of local governments
in receipt of a request for cooperation referred to in paragraph (1), shall cooperate with
such request.
[This Article Wholly Amended by Presidential Decree No. 22520, Dec. 9, 2010]

Article 7-2 (Formulation, etc. of City/Do Plans to Support Social Enterprises) (1) The Special
Metropolitan City Mayor, Metropolitan City Mayors, Do Governors, and the Special Self-
Governing Province Governor (hereinafter referred to as "Mayor/Do Governor"), shall
formulate a City/Do plan to support social enterprises (hereinafter referred to as "support
plan") every five years under Article 5-2 (1) of the Act: Provided, That where matters
referred to in paragraph (2) are included in a master plan on local employment policies
referred to in Article 9 of the Framework Act on Employment Policy, no support plans shall
be formulated.
(2) A support plan shall include the following matters:
1. Basic directions and implementation strategy to support social enterprises;
2. Social services provided through social enterprises and target levels of employment to
be created through such social services;

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3. Discovering and promoting social enterprises;

4. Creating an environment to activate social enterprises, including subsidization of facility
costs, etc., referred to in Article 11 of the Act, preferential purchases referred to in Article
12 of the Act, and tax reduction and exemption and subsidization of social insurance
premiums referred to in Article 13 of the Act;
5. Plans to raise finances, including budgets;
6. Other necessary matters to promote and support social enterprises.
(3) Each year, Mayors and Do Governors shall compile implementation results for the
previous year and a support plan for the relevant year (hereinafter referred to as "annual
support plan").
(4) Mayors and Do Governors shall submit a support plan and an annual support plan to
the Minister of Employment and Labor after deliberation by a local employment
deliberative council referred to in Article 10 (1) of the Framework Act on Employment
Policy by the following dates:
1. A support plan: January 15 of each quinquennial year from 2011;
2. An annual support plan: January 15 of each year from 2012.
(5) Upon receipt of a support plan and an annual support plan submitted pursuant to
paragraph (4), the Minister of Employment and Labor shall report them to the policy
deliberative council.
[This Article Newly Inserted by Presidential Decree No. 22520, Dec. 9, 2010]

Article 8 (Forms of Organizations of Social Enterprises) “The form of an organization

prescribed by Presidential Decree, such as a corporation established under a Special Act, or
a non-profit, non-governmental organization” referred to in Article 8 (1) 1 of the Act,
means any of the following: <Amended by Presidential Decree No. 23838, Jun. 5, 2012; Presidential
Decree No. 24020, Aug. 3, 2012>

1. A public interest corporation referred to in Article 2 of the Act on the Establishment and
Operation of Public Interest Corporations;
2. A non-profit, non-governmental organization referred to in Article 2 of the Assistance
for Non-Profit, Non-Governmental Organizations Act;
3. A social welfare corporation referred to in subparagraph 3 of Article 2 of the Social
Welfare Services Act;

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4. A consumer cooperative referred to in Article 2 of the Consumer Cooperatives Act;

5. A cooperative referred to in subparagraph 1 of Article 2 of the Framework Act on
Cooperatives; a federation of cooperatives referred to in subparagraph 2 of the same
Article; a social cooperative referred to in subparagraph 3 of the same Article; and a
federation of social cooperatives referred to in subparagraph 4 of the same Article;
6. A corporation or non-commercial organization referred to in other Acts.
[This Article Wholly Amended by Presidential Decree No. 22520, Dec. 9, 2010]

Article 9 (Standards for Determining whether Social Objectives Are Realized) (1) The
standards for determining whether the primary objective of an organization is to realize
social objectives under the latter part of Article 8 (1) 3 of the Act shall be as classified
hereunder: <Amended by Presidential Decree No. 25048, Dec. 30, 2013; Presidential Decree No. 27299, Jun.
30, 2016; Presidential Decree No. 29293, Nov. 20, 2018>

1. Where the primary objective of the organization is to provide social services to

vulnerable groups: The proportion of vulnerable groups among persons provided with
social services by such organization shall be at least 30/100;
2. Where the primary objective of the organization is to provide employment to vulnerable
groups: The proportion of vulnerable groups employed by such organization among the
total workers of such organization shall be at least 30/100;
3. Where the primary objective of the organization is to contribute to a community as
classified hereunder:
(a) Where the primary objective is to increase the income and employment of community
residents by utilizing human and material resources of the community (referring to a
community recognized by the Minister of Employment and Labor as needing
contribution from social enterprises after deliberation by the policy deliberative council;
hereafter the same shall apply in this subparagraph): The proportion of vulnerable
groups employed by such organization, who reside in the community in which such
organization is located (hereinafter referred to as "vulnerable groups of the
community") among the total workers of such organization or the proportion of
vulnerable groups of the community among persons provided with social services by
such organization, shall be at least 20/100;
(b) Where the primary objective is to solve social issues, such as poverty, alienation,
crime, etc., in the community: The proportion of revenue or expenditure of the part

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corresponding to the primary objective of such organization, shall be at least 40/100

of the total revenue or expenditure of such organization;
(c) Where the primary objective is to support a group seeking social objectives first, such
as providing the community with social services or employment, enhancing the quality
of life of community residents, etc., with consulting or marketing services, funds, etc.:
The proportion of revenue or expenditure of the part corresponding to the primary
objective of such organization shall be at least 40/100 of the total revenue or
expenditure of such organization;
4. Where the primary objective of such organization is to provide vulnerable groups with
social services and employment: The proportion of vulnerable groups employed by such
organization, among the total workers of such organization, and the proportion of
vulnerable groups provided with social services by such organization, among persons
provided with social services by such organization, shall be at least 20/100, respectively.
(2) Notwithstanding paragraph (1), where it is impractical to determine whether social
objectives are realized as prescribed by subparagraphs of paragraph (1), the Minister of
Employment and Labor shall determine whether social objectives are realized after
deliberation by the policy deliberative council.
[This Article Wholly Amended by Presidential Decree No. 22520, Dec. 9, 2010]

Article 10 (Standards for Revenue through Business Activities) “Revenue generated through
its business activities shall at least meet the standards prescribed by Presidential Decree”
referred to in Article 8 (1) 5 of the Act means where the proportion of total revenue
earned by the relevant organization through business activities for six months (referring to
the period of business activities of the relevant organization, where such period is less than
six months) immediately before the month in which the date of applying for certification of
a social enterprise pursuant to Article 8 (3) of the Act falls shall be at least 50/100 of the
total labor cost (referring to the cost of human resources input into services or production)
disbursed by that organization during the same period. <Amended by Presidential Decree No.
25048, Dec. 30, 2013; Presidential Decree No. 29293, Nov. 20, 2018>

[This Article Wholly Amended by Presidential Decree No. 22520, Dec. 9, 2010]

Article 11 (Matters to Be Stipulated in Articles of Incorporation, etc.) “Matters prescribed by

Presidential Decree” in subparagraph 10 of Article 9 of the Act means the following
matters:

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1. Branches of the relevant social enterprise;

2. Raising funds for the relevant social enterprise;
3. Accounting of the relevant social enterprise.
[This Article Wholly Amended by Presidential Decree No. 22520, Dec. 9, 2010]

Article 12 (Entrustment of Duties of Support for Management) (1) “Government-funded

institution or non-governmental organization prescribed by Presidential Decree” in Article
10 (2) of the Act means any of the following institutions or non-governmental
organizations: <Amended by Presidential Decree No. 23838, Jun. 5, 2012>
1. An institution (limited to an institution to which the government contributed) designated
as a public institution pursuant to Article 4 of the Act on the Management of Public
Institutions;
2. Any of the following non-governmental organizations:
(a) A management consulting company with at least three full-time consultants;
(b) A corporation with capabilities to provide specialized consultation services, etc., on
technologies, taxation, labor, and accounting;
(c) Deleted;<by Presidential Decree No. 23838, Jun. 5, 2012>
(d) A social enterprise or a non-governmental organization having a track record of
assisting corporations or organizations participating in the projects of creating jobs in
the social service sector for at least one year pursuant to Article 28 (1) of the
Framework Act on Employment Policy;
3. A research institution affiliated with a university referred to in subparagraph 1 of Article
2 of the Higher Education Act.
(2) Where the Minister of Employment and Labor entrusts an institution or organization
referred to in paragraph (1) with the duties of providing support pursuant to Article 10 (2)
of the Act, he/she may fully or partially subsidize the entrusted institution or organization
expenses incurred in the implementation of entrusted duties, within budgetary limits.
[This Article Wholly Amended by Presidential Decree No. 22520, Dec. 9, 2010]

Article 12-2 (Notification of Purchase Plans and Purchase Records) (1) By the end of February
each year, pursuant to Article 12 (2) of the Act, the head of a public institution referred to
in subparagraph 2 of Article 2 of the Act on Facilitation of Purchase of Small and Medium
Enterprise-Manufactured Products and Support for Development of their Markets shall
notify the Minister of Employment and Labor of the relevant year's plan to purchase goods

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and services manufactured by social enterprises (hereinafter referred to as "social

enterprise product"), purchase records for the previous year, the proportion of the amount
of social enterprise products purchased by the relevant institution among the total
purchase amount of the relevant institution, etc.
(2) The Minister of Employment and Labor shall compile purchase plans and purchase
records for the previous year by public institution under paragraph (1) and post notice
thereof on the Internet homepage by April 30 every year.
[This Article Newly Inserted by Presidential Decree No. 23838, Jun. 5, 2012]

Article 12-3 (Standards for Practical Identicalness) “Enterprise deemed practically identical” in
the former part of Article 18 (2) of the Act means any of the following enterprises:
1. An enterprise, the representative or manager of which is the same as that of an
enterprise of which certification is revoked;
2. An enterprise that acquires main business rights or assets of an enterprise, certification
of which is revoked;
3. Where an enterprise of which certification is revoked merges with another enterprise or
is spun off, an enterprise established following the merger or spin off;
4. An enterprise deemed by the Minister of Employment and Labor practically identical to
an enterprise, certification of which is revoked, in comprehensive consideration of the
objectives of business, details of business, members such as executive officers and
workers, decision-making structure, etc.
[This Article Newly Inserted by Presidential Decree No. 23838, Jun. 5, 2012]

Article 12-4 (Articles of Incorporation) (1) The articles of incorporation of the Korea Social
Enterprise Promotion Agency referred to in Article 20 (1) of the Act (hereinafter referred to
as the "Promotion Agency") shall include the following matters:
1. Name and purpose;
2. Main office and branch offices;
3. Executive officers;
4. Board of directors;
5. Business;
6. Budget and settlement of accounts;
7. Property and accounting;

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8. Amendment of articles of incorporation;

9. Establishment, amendment, and repeal of by-laws;
10. Dissolution;
11. Matters concerning public announcement.
(2) Unless the Minister of Employment and Labor permits amendment of the articles of
incorporation of the Promotion Agency, any amendment thereto shall be invalid.
[This Article Newly Inserted by Presidential Decree No. 22520, Dec. 9, 2010]

Article 12-5 (Executive Officers) (1) The Promotion Agency shall have not exceeding 15
directors, including a president of the Promotion Agency (hereinafter referred to as the
"president"), and an auditor to serve as executive officers.
(2) The president shall represent the Promotion Agency and manage the duties of the
Promotion Agency.
(3) The president shall be appointed and dismissed by the Minister of Employment and
Labor according to the procedures specified by the articles of incorporation.
(4) The following persons from among the executive officers referred to in paragraph (1),
shall become ex officio executive officers:
1. One person designated by the Minister of Employment and Labor from among public
officials with Senior Executive Service status who are in charge of promoting social
enterprises in the Ministry of Employment and Labor;
2. One person designated by the Minister of Strategy and Finance from among public
officials with Senior Executive Service status who are in charge of the budget of the
Promotion Agency in the Ministry of Strategy and Finance.
(5) Directors, excluding ex officio directors, and an auditor shall be appointed and
dismissed by the Minister of Employment and Labor according to the procedures specified
by the articles of incorporation.
(6) No non-executive directors shall be paid any remuneration: Provided, That actual
expenses incurred in the performance of duties may be paid to non-executive directors,
excluding ex officio directors.
(7) The terms of office of the president and directors shall be three years, and the term of
office of an auditor shall be two years: Provided, That the term of office of an ex officio
director, shall coincide with the period during which he/she serves in his/her original office.

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[This Article Newly Inserted by Presidential Decree No. 22520, Dec. 9, 2010]

Article 12-6 (Board of Directors) (1) The Promotion Agency shall establish a board of
directors to deliberate on and determine the following matters:
1. Amendment of articles of incorporation;
2. Organization of the Promotion Agency;
3. Appointment and dismissal of the president;
4. Establishment, amendment, and repeal of important by-laws;
5. Business plans, budget, and settlement of accounts;
6. Acquisition and disposal of major property;
7. Other important matters concerning the operation of the Promotion Agency.
(2) The board of directors shall consist of the president and directors.
(3) The president shall convene and preside over meetings of the board of directors.
(4) The auditor may present himself/herself at the meetings of the board of directors and
state his/her opinions.
(5) Matters necessary for the operation, etc., of the board of directors shall be specified by
the articles of incorporation.
[This Article Newly Inserted by Presidential Decree No. 22520, Dec. 9, 2010]

Article 12-7 (Accounting) The fiscal year of the Promotion Agency shall coincide with the
fiscal year of the Government.
[This Article Newly Inserted by Presidential Decree No. 22520, Dec. 9, 2010]

Article 12-8 (Cooperation in Duties) Where necessary for the performance of duties to
develop and promote social enterprises, the president may request relevant agencies to
submit data.
[This Article Newly Inserted by Presidential Decree No. 22520, Dec. 9, 2010]

Article 12-9 (Registration of Establishment) (1) The Promotion Agency shall come into
existence by having its incorporation registered at the seat of its main office.
(2) Matters to be registered for the Promotion Agency referred to in paragraph (1) shall be
as follows:
1. Name and purpose;

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2. Locations of main office and branch offices;

3. Names and addresses of executive officers.
[This Article Newly Inserted by Presidential Decree No. 22520, Dec. 9, 2010]

Article 13 (Delegation of Authority) The Minister of Employment and Labor shall delegate to
the heads of local employment and labor offices, authority over the following matters
pursuant to Article 21 of the Act:
1. Providing financial support to social enterprises providing social services under Article 14
of the Act;
2. Receiving business reports and issuing orders to submit reports or relevant documents
necessary for duties, and corrective orders under Article 17 of the Act;
3. Holding hearing and revoking certification under Article 18 of the Act;
4. Imposing and collecting administrative fines under Article 23 of the Act.
[This Article Wholly Amended by Presidential Decree No. 22520, Dec. 9, 2010]

Article 13-2 (Processing Personally Identifiable Information) The Minister of Employment and
Labor (including persons to whom the Minister of Employment and Labor entrust or
delegates his/her authority or duties pursuant to Article 21 of the Act) or the heads of
local governments (including persons to whom the relevant authority is delegated or
entrusted) may process data, including resident registration numbers or alien registration
numbers under subparagraph 1 or 4 of Article 19 of the Enforcement Decree of the
Personal Information Protection Act, where essential performing the following duties:
1. Certifying social enterprises under Article 7 (1) of the Act;
2. Funding the purchase of sites and for facility expenses, etc., under Article 11 of the Act;
3. Subsidizing labor costs under Article 14 (1) of the Act.
[This Article Wholly Amended by Presidential Decree No. 25532, Aug. 6, 2014]

Article 14 (Imposition of Administrative Fines) Criteria for imposing administrative fines under
Article 23 (3) of the Act shall be as listed in the attached Table.
[This Article Wholly Amended by Presidential Decree No. 22520, Dec. 9, 2010]

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