7-1 · Social economy & employment certifications

Social Enterprise Certification

Social enterprise certification is granted by the Ministry of Employment and Labor under Article 8 of the Social Enterprise Promotion Act, and the applicant must meet all requirements: organizational form, employment of paid workers and business activities, realization of a social purpose, a decision-making structure in which stakeholders participate, the operating income standard, articles of incorporation or bylaws, and, for commercial companies, reinvestment of at least two-thirds of profits. The operating income standard requires total income from business activities in the 6 months before the month of application to be at least 50% of total labor costs for the same period, and the social purpose is judged by the standards in Article 9 of the Enforcement Decree, such as a vulnerable group ratio of at least 30% for job-providing and social-service-providing types. When the certification application (Annexed Form No. 1 of the Enforcement Rules) is submitted to the Korea Social Enterprise Promotion Agency during the application period announced by the Ministry at least once a year, the certificate is issued after review by the Employment Policy Council within 60 days of the end of the application period. After certification, business reports must be submitted and the certification requirements maintained.

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🌐 Social Enterprise Certification Requirements and Application Procedure
01

Procedure

Procedure

Procedure type
  • Certification Difficulty High

    Designation or certification after document review and on-site evaluation against the criteria set by the agency. The result depends on the evaluation score or review outcome.

  1. 01

    Checking the organizational form: Confirm that the organization takes a form set by the Enforcement Decree, such as a corporation or association under the Civil Act, a company or limited partnership under the Commercial Act, a corporation established under a special act, or a non-profit private organization. A social cooperative has already had its public-interest business and member participation structure verified at the incorporation approval stage, so there is less work in revising its articles.

  2. 02

    Calculating the operating income standard: Using monthly sales and labor cost records, calculate whether total income from business activities in the 6 months before the month of application (or the period of operation if shorter than 6 months) is at least 50% of total labor costs for the same period.

  3. 03

    Proving the social purpose type and ratio: The standard is a vulnerable group ratio of at least 30% among service recipients for the social service type, at least 30% among all workers for the job-providing type, at least 20% each for the mixed type, and for the community contribution type at least 20% of local vulnerable groups or at least 40% of income or expenditure in the main purpose area. Collect the fact confirmation forms for each type and documents confirming vulnerable group status, such as disability registration certificates.

  4. 04

    Revising the articles and decision-making structure: Provide in the articles or operating rules for a decision-making body in which stakeholders such as service recipients and workers participate, and keep minutes as a record of its operation. Commercial companies state in their articles that at least two-thirds of distributable profits will be used for social purposes.

  5. 05

    Submitting the certification application: During the application period in the Ministry's announcement, submit the certification application with evidence of organizational form, the list of paid workers, social purpose, decision-making structure and operating income, and a copy of the articles to the Korea Social Enterprise Promotion Agency. The agency checks the documents and may request supplementation, and certification is decided after review within 60 days of the end of the application period.

  6. 06

    Management after certification: After receiving the certificate, the enterprise must submit business reports and continue to meet the certification requirements, including the vulnerable group ratio, operating income and decision-making structure, and certification may be revoked if the requirements are lost.

02

Filing route

Filing route

Korea Social Enterprise Promotion Agency (accepted during the certification application period announced by the Ministry of Employment and Labor)

Confirm the current filing office, jurisdiction, and online availability on the official website.

Official check
Actual processing agencyCompetent Korean authority or official service
Statutory and policy authorityMinistry of Employment and Labor
Online routeCompetent Korean authority or official service
03

Deadlines & processing notes

Deadlines & processing notes

Check deadlines and next steps against the notice, filing date, and any request for additional documents.Official check
04

Basic documents

Basic documents

Basic documents0 / 8

Applications are accepted only during the announced period, so start preparing 6 months to 1 year in advance to build a track record of operating income for the previous 6 months and of the vulnerable group ratio.

Scope of services

Scope of services

Hwang Yunsang Administrative Agent Office prepares and translates documents for administrative agencies, submits them on your behalf, and guides you through permit, application, and notification procedures. Services that require the principal’s personal appearance, principal’s application, or electronic signature may be limited in delegation.