Chapter 20 - Korea’s consumer cooperatives and civil society: the cases of iCOOP and Hansalim

Abstract

The aim of this chapter is to describe and analyze the historical context, current situation, and governance issues of consumer cooperatives in Korea, and to explore conceptual models for consumer cooperatives. This will enable conclusions to be drawn as to the factors leading to success, the identification of difficulties, and how these difficulties can be overcome. From the macro perspective, we investigate the relationship between the state and consumer cooperatives, highlighting the roles of the state in the emergence and development of consumer cooperatives. For the microlevel analysis, organizational design and governance structure are examined to grasp the key characteristics and performance of consumer cooperatives in Korea. As the social movements of labor, gender, and the environment have been growing, Korea’s consumer cooperatives have emerged along with civil society. As consumer cooperatives developed in the 1990s, they were required to be institutionalized in the emergent legal system. The governance of Korea’s consumer cooperatives is designed for working with producers and consumers, emphasizing more on democratic participation than on management professionalism. In conclusion, Korea’s consumer cooperatives have emerged from the grassroots movement of civil society. This research is based on the case study of iCOOP and Hansalim, which are the two of the largest consumer cooperatives in Korea.