Basic Report

Community Business Model in KoreaAs the interest for job creation and social economy increased, the central andlocal governments are actively promoting community business for market-oriented jobcreation and recovery of community. However, similar policies from differentdepartments are being promoted without accurately defined concept of communitybusiness, decreasing the efficiency of the policies.Therefore, in order to promote community business as a new strategy forregional vitalization, analysis of promotions and problems of early stages and settingdesirable CB model that coincides with conditions in Korea are needed. This studysuggests CB model and its promoting/supporting measures that enable communitybusinesses to meet conditions in Korea based on the analysis and case studies oncommunity business policies.This research seeks for the course of policy through discussions about thedesirable conditions of the model that Korean community business promotion policiesshould fulfill in six different perspectives; policy goal, main agent of the project, theareas of project, government support method, promotion system, and governance. Also,to realize Korean community business model, it suggests measures of discovery ofadditional CB project area and re-classification, improvement of supporting method forCB assistance, unified promotion of similar and overlapped government's job policies,financial assistance for CB, establishment intermediary for CB assistance, CBconversion of local development projects and legal enactment for CB assistance. An Analysis of Job Creation Effects and Strategic Suggestionsof Local/Regional Social Enterprises in KoreaThis research paper at the outset provides a theoretical review of themeasurement of social and economic values created by social enterprises (hereinafterSEs) in the third sector, as one of the strong alternatives against market andgovernment failure in this capitalistic economy. Based on the theories, the author triesto evaluate economic returns and social contributions of SEs in Korea by province.Furthermore, with the results of the performance estimation of individual provinces forSEs, this research discusses the appropriateness of the provincial 5-year projects,recently planned by legal obligation, to promote and support local SEs and providesmeaningful suggestions on the future direction of the strategies toward maximizingsocial and economic performances of SEs for each province. This paper is the firstempirical approach to evaluate EROI and SROI of local SEs in Korea and is of greatsignificance in this regard.Throughout the discussions, the author adopts the concept of EROI (EconmicReturn on Investment) and SROI (Social Return on Invest) as widely-accepted SEevaluation methodology, reviews its applications in domestic and oversea areas, andelaborates an evaluation model with items of economic performance and socialcontribution focusing mainly on job creation effects. Besides, the paper summarizes thecurrent status of and the national/local promotion strategies and policy instruments forSEs and PSEs (Preliminary SEs). The analysis is performed the real data collected byKSEPA (Korea Social Enterprise Promotion Agency), and the result implies that theEROI and SROI estimates differ by localities. Remarkable findings are: 1) theperformances of SEs in the Seoul Metropolitan Regions are generally better than theother areas, and 2) the job creation effects in the low-dense areas such as agriculturaland peripheral regions are relatively smaller than the other metropolitan areas. Thusthe author suggest there need strategies more to expand the number and the outcomesof SEs in most metropolitan areas rather than ones to enhance the quality of each SE,whereas there need to promote social contributions rather than economic sustainabilityin most peripheral areas.Job creation plan with regional characteristicsGovernment offered financial support to targeted applicants to create regional jobopportunity. However, the provision of jobs lacks of supply standards in terms ofregional demand and supply match with considering regional labor and capitalcharacteristics.Therefore, this study extends from the existed job provision plan whichconsidering regional labor resources and region-specific characteristics of industry intothe plan which considering regional import and export, labor force, and regionaleconomic competitive’s move. To this end, this study suggests central and localgovernments’ political plan with taking an empirical analysis of local labor and capitalresources. Empirical analysis applies Hecksher-Ohlin model which acts as a standardwhether government created job possibility with comparing regional labor force andbudget with regional industrial characteristics in region's own. In addition, this studyalso suggests economic impact of government supported job creation.As a result of job creation from different departments, general satisfaction andpractical job creation appeared to have taken place in Gwangju and Jeolla region. Onthe other hand, the major problems include that uniform distribution withoutconsidering regional characteristics is the biggest problem in the public sectorperspective. In the private sector perspective, the extension of working time, salaryincreases for personnel expansion, providing a variety of jobs, sustainable jobs linkedto the expansion showed that the most urgent problem.As a result of the production, consumption, intermediate goods, and taking intoaccount of productivity, the effect of the extended model presented that Leontiefparadox is applied to the case of government supported job creation plan in the 16cities. This empirical study shows that government supported job creation also hasother impacts such as production effect, income effect, value added effect, forewardand backward effect. Therefore, when central and local government provide optimalplan for creating new job opportunity, securing the fairness and achieving economiesof scale with consideration of matching the region's workforce, job creation budgetand regional characteristics in the industry are necessary. Research on Local Green Job IncubationsGreen growth is increasingly becoming important for it's role of creating new jobopportunities, so called as green jobs. This study aims to develope the concept andtypology of Green Jobs. Green Jobs have characteristics of publicness, universality andlocal connectivity, which are all related to green industries, local jobs and socialenterprises. Green social enterprises, especially strongly relates with green jobs forforeseeable results in fulfilling the social object of job creation, and transition ofexisting industries to green growth industries.There are a number of existing typology of Green Jobs, however in this study, Icategorize green jobs in 4 types: "environmental management", "green service","energy", and "local community". The 4 types are evaluated with the degree of capitaland technology intensiveness, and labor intensiveness in order to develope incubatingstrategies. "Environmental management" and "local community" showed relativelyhigher labor intensiveness, where "energy" showed capital and technologyintensiveness. "Green service" was not specifically defined into categories in theevaluation. It is important to provide different levels of support to social enterprisesby types defined with the nature of its intensiveness.Incubating Green Jobs requires close cooperation between local governments andcentral government departments which are in charge of each types, based on thecustomized support for each types and central government policies. In order tomaximize policy outcomes, it is also important to incubate pilot social enterprises asthe National Employment Strategy Council has discussed "Pilot social enterprisenominations by Ministries" on June 2011. In addition, to incubate and expand greenjobs, policies should interface with local community job creation projects, with institutional support, such as local industry development according to localcharacteristics; town enterprises which central and local governments are initiating;rural community enterprises; and pilot social enterprises.