Seoul’s Social Economy - Localization Strategy

The Transformation of Seoul SE Policy: Overview

█ Change of Course: both the central government and the SMG

Direct Support

(wage support)

Indirect Support

(ecosystem creation)

Social Economy Localization

3

2010 2011

Revision of the Social Enterprise

Promotion Act

-> Political responsibility delegated

from the central government to local

governments

Establishment of Seoul Social

Economy Planning Group

(Now Committee)

-> Policy basis changed due to the

establishment of social economic

ecosystems

Debate over the localization of the

social economy

Establishment of foundation for cooperation

between social economy groups;

Reinforcement of civil-government governance;

Stress on promoting shared community

resources

After 2012

Chosen as a key policy concept due

to the development of local social

economic ecosystems

-> Discovery of local issues,

Capacity building of local SE,

Promotion of policies that support

the vitalization of the local social

economy sector

Establishment of Supporting Policies for Seoul’s Individual Autonomous Districts

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▣ Seoul City is divided into 25

autonomous districts

- Each gu(district) is a local

government

- Social economy localization

policies are designed and

executed within these

autonomous districts

Eunpyeong-gu

Gangseo-gu

Yangcheon-gu

Guro-gu

Yeongdeungpo-gu

Geumcheon-gu Gwanak-gu

Dongjak-gu

Seocho-gu

Gangnam-gu Songpa-gu

Gangdong-gu Gwangjin-gu

Jungnang-gu

Nowon-gu

Dobong-gu

Gangbuk-gu

Seongbuk-gu

Dongdaemun-gu

Seongdong-gu

Mapo-gu

Seodaemun-gu

Yongsan-gu

Jung-gu

Jongno-gu

Concept Map of Social Economy Localization Policies

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Vision Establishing sustainable social economic ecosystems within

autonomous districts

Mission Establishing elements of the

ecosystems Establishing social economy

parties within the area Procuring capacity for change

Programs

Supporting start-up management

Establishing private partnerships Operating civil networks

Establishing space

Supporting promotion and marketing

Stabilizing intermediate supporting organizations

A policy that creates local social economic ecosystems

Facilitating related programs

Promoting social economy

special „social economy zones‟ initiative

Goals Establishing

Infrastructures Creating a social economy market

Vitalizing cooperation

Conducting strategic programs

Local Social Economic Ecosystems Foundation Project - Outline

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Background

Seoul’s social economy acceleration, promotion policies have shifted from direct support methods to methods that establish ecosystems in individual districts

Developing social economic ecosystem models commensurate with autonomous districts’ characteristics and reinforcing local capacities, based on civil-civil, civil-government cooperation

Support Subsidy of approximately 200 million won (roughly USD180,000) every year after Seoul City’s evaluation One-year contract for each project: can be extended up to two times through evaluation, maximum three years of

support

Establishment of experimental programs that address local issues and a

shared business foundation

Civil-civil/civil-government governance Investigation of local resources Establishment of local strategies

Promotion of specialized local businesses

Expansion of community resources to share

1st Year 2nd Year 3rd Year

Integrated support center in autonomous districts & special social economy zones

2 Years after conclusion

Development of local human resources

Development of local resources

Investigation of local issues

Creation of local market

• Retraining SE entrepreneurs • Cooperation with Wiki Seoul • Assistance for small civil

groups

• Cultivation and integration of human/material resources within the districts

• Supporting foundation of ‘clusters’

• Promoting foundation of solidarity funds

• Development of issues in individual districts

• Organization of solidarity facilitating communities for the settlement of local issues

• Organization of ‘apartment living coops’

• Mediation of public purchases

• Exploration of civil markets, etc

Establishment of local governance

• Systemization of SE consultative groups in autonomous districts

• Organization of civil-government cooperations

• Supporting civil societies

Local Social Economic Ecosystems Foundation Project -Infrastructure for Local Capacity Building

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Social economic networks in autonomous districts (19)

Local social economic ecosystem founding businesses (11)

Local clusters (9) (Eunpyeong, Seongbuk, Yeongdeungpo, Nowon, Gwanak, Dongjak, Yangcheon, Dobong, Seongdong)

Social economy centers in autonomous districts (3)

Coop councils in autonomous districts (9)

Social economic incubating (18)

Community self-sufficiency centers (30)

Integrated social economy support centers in autonomous districts (4)

Preliminary special social economy zones (6)

Oct. 2015

Gangseo-gu

Yangcheon-gu

Guro-gu

Geumcheon-gu

Yeongdeungpo-gu

Dongjak-gu

Gwanak-gu

Seocho-gu Gangnam-gu

Songpa-gu

Gangdong-gu

Mapo-gu

Seodaemun-gu

Yongsan-gu

Jung-gu Seongdong- gu

Gwangjin-gu

Jungnang-gu

Dongdaemun-gu

Seongbuk-gu

Nowon-gu

Dobong-gu

Gangbuk-gu

Eunpyeong-gu

Jongno-gu

Local Social Economic Ecosystems Foundation Project –Reformation of Urban Industries and Adopting Innovative Models

Re-systemization of urban manufacturing

Establishment of Geumcheon‟s sewing fashion platform

Establishment of Seongdong Sewing Coop

• Cooperation with Hanyang Women’s University, fashion technology center • Establishment of social coop for the vitalization of sewing industries

Promotion of local innovative businesses

Eunpyeong : Empty House (Gong-ga) Project

Guro, Geumcheon School Coops

• Social housing business

• Turned an Empty House to

the 1st Share House

(‘Gong-Ga Project)(Sept. 2014)

• Management of the Eunpyeong-gu

Empty House Bank

• A few schools opened school coops.

• Guro Younglim Middle School

• Geumcheon Doksan High School

• Gangbuk Samgaksan High School

• Gwanak Samsung High School

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Using unused sites in municipal districts for

Establishing „social economy clusters‟

▣ 9 districts selected through three round of selection process • First: Eunpyeong, Seongbuk,

Yeongdeungpo, Gwanak • Second: Nowon, Dongjak, Yangcheon • Third: Seongdong, Dobong

Local Social Economic Ecosystems Foundation Project – Expansion of Community Resources

Eunpyeong-gu

Seongbuk-gu Extended Space

5th Floor

4th Floor

3rd Floor

2nd Floor

1st Floor

6th Floor Prepartation room/storage

Office-1

Guest room-1

Seongbuk Social Economy Support Center

Seminar room-2

Childcare room Recreation room Childcare room

Community hall

Lecture room

Multi-purpose space

Office-4

T3 deco-tiles (wood) Panel heating Noise proof sheet

Corridor

T24 color double layered

T3 deco-tiles (wood) Panel heating Noise proof sheet

Multi-purpose hall

Corridor

Corridor

Light weight steel ceiling frame T19 noise absorbing texture

Multi-purpose hall for residents‟ self-governing program

Occupation space, guest rooms

Office space for firms

Integrated support office, education space

District daycare center

Resting space and café, community hall, meeting room

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Searching for Local Strategic Businesses – Special Social Economy Zones

The shift from providing services to providing solutions to local issues!! Establishment of region-based special economy zones

Effects

Main local issues resolved

Living ecosystem established

Capacity of SE strengthened

Special zone model proliferated

Strategies

Finance/facilities

System improvement

Governance

Administrative support

Targets (Types)

Zone-based type (Large living sphere) Neighborhood living type

(small living sphere) Industry-based type

Tasks Process Areas of Support

Specialized regional solution strategy

Regional innovation and smart

specialization strategy

Promotion of local social problem-solving, strategic

businesses

Expand impact of social economy on civic life

Establishment of operation bases and networks

Procuring self-sufficiency and sustainability through asset

management methods

Introduction of strategies connecting, changing region-based

businesses and ready markets

Special zone TF (Oct. 2014~Feb.

2015)

Workshop (Feb. 2015)

Special zone foundation strategy

(Mar. 2015)

Individual regions‟ policy

meetings (Finding agendas)

(Apr.~Jul. 2015)

Confirmation of

experimental business areas (Sept. 2015)

Commenced experimental businesses (1~2 sites)

(Oct. 2015~)

Public experimental

business areas contest (Aug. 2015)

1. Analysis of region’s characteristics and potential

2. Setting governance

3. Setting regions’ future visions

6. Monitoring and assessment

4. Setting order of priority

5. Policy Mix

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Special Social Economy Zones – Finding Business Models

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Local issues

Local

capacities

Process of

finding

agendas

Section

Special zone

model

Has the largest number of „New Town development districts‟

among Seoul‟s 25 autonomous districts

Conflict intensified among residents due to development plan

Has some construction capacity such as local carpenters and

construction social enterprises (e.g. Nanum Housing)

Youth social enterprises active

Civil-government cooperative capacity is relatively high

One of New Town Districts (Jangwi-dong district 13) is selected

as experimental urban restoration business, not

„redevelopment‟

Experienced multiple cases of urban restoration including

Jangsu Village, Angel Village, etc

Seongbuk-gu

Establishing a new corporations that will lead restoration projects

An active semi-industrial district,

Ranks the 3rd in Seoul in terms of its number of manufacturers

Decline of industries; now mainly small scale sewing, handmade

shoes industries

Advanced skills of local traders

Establishment of the Korea Fashion Sewing Social Coop

Cooperative capacity of civil-government institutions exist

Sewing vitalization project headed by local social economic

ecosystem founding group

Founded a “fashion technology center” through joint

cooperation with civil-government institutions including the

Seongdong-gu Office and Hanyang Women‟s University

Seongdong-gu

Establishment of social fashion ecosystem in Seongdong

Special Social Economy Zones – Six examples

Seongbuk-gu

Nowon-gu

Seongdong-gu

Gwangjin-gu

Gwanak-gu

Mapo-gu

Established and managed social service centers that integrate care+food service+culture & art+urban regeneration

Promoted social economic zones focusing on local issues (circulation of resources, adolescents, care)

Established a “social fashion ecosystem” based on local industrial sites

Developed total care service businesses by creating social economic resource clusters within the area

Developed a social economic care model within the area with the motto — “Gwanak where children are happy, Gwanak where dreams are made together”

Developed culture & arts tourism, experience business models based in areas surrounding Hongik University

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Flow of Social Economy Localization Policies

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Local Ecosystem Building Program

Finding local issues

• Reinforcing

local capacities

Community Business Incubator

Vitalization of Coops

Vitalization of local sectors

Reinforcement of civil-civil networks and civil-government

cooperation •

Building ecosystems (talent, market, capital)

• Formation of civil sympathy

Integration with local community •

Monitoring consultation for establishment

Monitoring consultation for establishment

Specialization of Autonomous

Districts

Vitalization of

businesses

Businesses that promote market development

Integrated support centers in

autonomous districts

(Preliminary) Special Social Economy

Zone

Finding local strategic projects

Foundation of Clusters

Asset developing

strategy

Building social economy spaces within autonomous districts

Foundation of Clusters

Program name Aim Program content

2012~2015 2015~

Program name

Social Economy Incubator

Operation of Clusters

Autonomous Districts Specialization Project

▣ Integrated support centers in autonomous districts

- Supporting integrated planning for the vitalization of social economy in autonomous districts

- Providing support by uniting assistance policies from different sectors

▣ Special social economy zones

- Finding and settling local issues with social economic methods based on experience acquired in the localization process

- Promoting innovative local social economy businesses

Principles of Localization Policies

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Reflecting local needs and preparations (The principle of need-base approach)

Necessary to focus on reinforcing independent capacity, the core element among ecosystem

components (people, capital, markets, knowledge/technology, common platforms, etc)

Exercising caution against impatience due to other political interests

Cooperative governance based on autonomous governance

(The principle of subsidiarity)

Policy assistance creates a pump effect and promotes principles of self-support and self-governance

Decentralization of power and resources to primarily establish cooperative foundations for autonomous

districts

Based on an agreement about horizontal partnerships and social duty fulfillment

(The principle of reciprocity)

Necessary to fulfill social duties of the entire social economy based on civil reciprocity

Partnerships between various local social groups must be based on horizontal cooperation and

mediation

Must be accompanied by administrative innovation

A flexible and effective management capacity, accompanied by administrative innovation in

administrative departments or budget execution systems, is required during growth periods, when

public policies and finance are crucial