Social cooperatives helping needy families

Posted on : 2013-01-16 16:11 KST Modified on : 2019-10-19 20:29 KST
With enactment of new law, more non-profit groups are popping up to provide services
 formed by twenty member social enterprises sponsored by SK Happiness Sharing Foundation
formed by twenty member social enterprises sponsored by SK Happiness Sharing Foundation

By Kim So-youn and Kwon Eun-jung, staff reporters

After the enactment last month of the Cooperatives Basic Law, a number of non-profit social cooperatives are being established with the goal of providing jobs and social services for the most needy groups in society.

The Ministry of Strategy and Finance announced on Jan. 15 the approval of the Happy Lunchbox, a free meals service for low-income families. Meanwhile the Ministry of Labor and Employment has approved Cafe Oasia, a coffee making operation run by foreign women who are married to Korean men. Social cooperatives require approval from a government ministry.

Happy Lunchbox is a newly founded social cooperative, formed by twenty member social enterprises sponsored by SK Happiness Sharing Foundation, which provide a free lunch delivery service. It plans to operate 45% of the enterprise as a free service to the public and seek profits on the remaining 55% as an outside catering business. Any profits will then be reinvested into the free food service. A Ministry of Strategy and Finance spokesperson said, “This is a concrete example of big business demonstrating social responsibility.”

Cafe Oasia is a social cooperative operated by wives in multicultural families to help them adapt to a new culture and become fully functional in their new home. A model branch is currently operating in Posco Center in the Samsung neighborhood of Seoul‘s Gangnam district. Social enterprises such as Dokjinny and Cafe With Us have joined the cooperative. Cafe Oasia has received start up assistance for the past two years from Posco and the Social Enterprise Support Network. Kukmin University Graduate School of Techno Design students donated the name to the cafe.

Cafe Oasia invests all of its profits in the cooperative to expand the number of stores and provide employment for immigrant wives. Cafe Oasia will assist the social enterprises with running the cafes by joint purchasing of goods and marketing, while providing operational support and business consultation. “The expansion and invigoration of social collectives will have a positive impact on fostering social enterprise,” said a Labor Ministry spokesperson.

160 groups nationwide have applied to found general cooperatives, and an additional 21 to become social cooperatives. 93 groups have been approved as general cooperatives, and two have been approved as social enterprises.

 

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