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  • E-ISSN2733-936X
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  • P-ISSN 2671-8197
  • E-ISSN 2733-936X

A Study on the Effects of Social Capital on Growth and Sustainability of Cooperatives: Centered on a Case of Wonju, Korea

Korean Studies Quarterly / Korean Studies Quarterly, (P)2671-8197; (E)2733-936X
2013, v.36 no.4, pp.32-57
https://doi.org/10.25024/ksq.36.4.201312.32
Myung-Ho Shin

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Abstract

These days, the most serious concern of those engaged in running social economy organizations including cooperatives and social enterprises is how to strengthen sustainability of their organizations by making them more financially viable. The aim of this study is to find out the reasons why the cooperatives in Wonju show higher viability than those of other areas. For that aim this study researched into the process in which “Happy Rice‑cake House”(행복한 시루봉) and “Wonju Elderly Consumers’ Cooperative”(원주노인생협) have developed and utilized social capital in Wonju city. Having been continued since 1960s, the cooperative movement in Wonju has produced 35,000 members of cooperative in 19 cooperatives, several dozens of workers and their network. These relationships and network as social capital significantly contribute not only to building a new organization, but also to making established organizations more viable by helping to increase their sales volume. If the consumers’ cooperatives in the network had not supported “Happy Rice‑cake House” with intentional consumption, the organization must have failed to cope with the risks from competitive market. From this case study, we’ve come to conclusion that the way to make social economy organizations more viable necessitates not just the establishment of advantageous laws and institutions, but also the development of mutual aid system among social economy organizations within an area.

keywords
cooperative, social economy, social capital, community movement, sustainability, Wonju Social Economy Network, 협동조합, 사회적 경제, 사회적 자본, 공동체운동, 지속가능성, 원주협동사회경제네트워크


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