Social Co-operative
It is an autonomous association voluntarily formed by people who want to meet economic, social, and cultural needs and aspirations through projects jointly owned and democratically operated by ICA (International Cooperative Alliance).
The term "cooperative" means a business organization that intends to enhance its partners' rights and interests, thereby contributing to local communities by being engaged in the cooperative purchasing, production, sales, and provision of goods or services.
The term "social cooperative" means a cooperative that carries out business activities related to the enhancement of rights, interests, and welfare of local residents or provides social services or jobs to underprivileged people, among cooperatives under subparagraph 1, but that is not run for profit.
A business organized by five or more people with a common purpose, with no restriction on the type of business (excluding finance and insurance)
One vote per person regardless of the size of the investment
Members have limited liability for investment assets
Be free to join and withdraw fom the cooperative
Dividend based on performance of use, etc. not based on the invested amount
Producer cooperative | Cooperatives where individual business members jointly use sales, material purchases, and brands to generate revenue. |
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Consumers' cooperative | A cooperative established to purchase goods or use services for improving the consumption of goods by the members, and other consumers, as well. |
Worker cooperative | A cooperative established to increase stable jobs by having employees own and operate cooperatives together. |
Multi-stockholder cooperatives | A cooperative in which two or more members of an association work together to address common needs |
General Cooperative | classification | Social Cooperative | |
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Profit-making corporation | corporate personality | Non-profit corporation | |
Report to the City Governor | establishment | Obtain authorization from Ministry of Strategy and Finance (Related ministries) | |
No restriction on the type of business (excluding finance and insurance); | Business |
At least 40% of public service projects should be carried out. (Local business/Social service for vulnerable group/Employment for vulnerable group /Consignment business/Other enhancement of public interest/Mixed type) |
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Not compulsory. *Obligations shall be made where the number of members is at least 200 or the equity capital is at least 3 billion won; | Official notice of management | Not compulsory. *Obligations shall be made where the number of members is at least 200 or the equity capital is at least 3 billion won; | |
More than 10/100 of the surplus *Until it reaches three times its equity capital. | Legal reserve | More than 10/100 of the surplus *Until it reaches three times its equity capital. | |
Available for dividend | Allocation | Available for dividend | |
Dividend based on usage record : Dividend not less than 50/100 of the total amount available |
Dividend based on investment money : Dividends not more than 10/100 of the invest money paid; |
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Treatment of residual property according to the articles of association | Liquidation | Reversion to Non-profit corporation or the national treasury. etc. | |
No related content(Application from commercial law, etc.) | Supervision | If necessary, the Minister of Ministry of Economy and Finance (related ministries) will inspect the work situation, ledgers, and documents, and the accreditation will be revoked if the authorization requirements are violated. |