Social Enterprise, Policy Entrepreneurs, and the Third Sector: The Case of South Korea

Abstract

The U.S. and the U.K. are considered as successful models of social enterprise. The Korean government benchmarked these two models in the hope of achieving similar success, without much avail. The growth of social enterprises in South Korea is attributed to the country’s characteristically strong central government and its creation of relevant institutions and provision of support services. However, this paper provides an alternate explanation by highlighting role of the third sector as the ‘policy entrepreneur’ in agenda-setting and policy implementation with regards to social enterprises in South Korea. Additionally, the decentralized local governments as well as the market structure dominated by big businesses are also examined as the main contributors to ‘policy windows’ for the third sector’s policy entrepreneurship. The paper showcases successful development of social enterprise despite the absence of a welfare state or a well-developed third sector, and argues that the phenomenon should hold numerous policy implications for other Asian countries.