SEOUL, Dec. 24 (Korea Bizwire) — The government will mandate social enterprises to fulfill their disclosure requirements.
Some of the social enterprises that turn out unviable through the disclosure process will be forced to close their business while the government stops providing subsidies in the form of salary support. The Ministry of Employment & Labor said this on December 23, adding this is intended to help the firms grow their business.
To that end, the ministry will revise related laws in the second half of next year so that social enterprises bigger than a certain size must disclose their financial standing. It will also come up with quantitative indicators to measure the performance of these firms in terms of social contribution.
In addition, the ministry will phase out in stages its provision of salary support to the social enterprises while giving other forms of incentives to firms hiring employees for a long time.
For example, it will provide next year 90 percent and 80 percent of salaries to social enterprises certified as preliminary enterprises and full-fledged ones, respectively. But the salary support will be reduced to 70 percent and 60 percent each beginning in 2016.
For those social enterprises certified as one for three years, the ministry will provide 30 percent of their salary bills from next year from current 50 percent. If the firms show that they continue to hire employees, however, 20 percentage points more will be given out.
By M. H. Lee (firstname.lastname@example.org)