Worker cooperatives in South Korea

South Korea’s worker cooperative movement, initially suppressed after the Korean War, re-emerged after the 1987 democratisation process. Driven by various factors including worker buy-outs of failing businesses (especially after the 1997 economic crisis), local trade union initiatives, and young people in service sectors, the most impactful model arose from the urban poor movement. This “production community” model aimed to improve working conditions and create an alternative economy. Influenced by the Mondragon model from Spain, worker cooperatives sought solutions to challenges like limited capital, technology, and management skills. Solidarity initiatives and government programs like the self-sufficiency programmes supported cooperatives, particularly after legal recognition in 2012 through the Cooperative Framework Act. The Korean Federation of Worker Cooperatives has played a key role in promoting the worker cooperative model. South Korea also has seen a strong development of social cooperatives, which are generally composed of different types of members.