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SEOUL METROPOLITAN GOVERNMENT ORDINANCE ON THE PROMOTION OF SOCIAL ENTERPRISES

Article 1 (Purpose) The purpose of this Ordinance is to contribute to the integration of communities and improvement in the quality of life of residents by enhancing social services and creating new jobs through the promotion of and support to social enterprises and prospective social enterprises in accordance with the Social Enterprise Promotion Act.

Article 2 (Definitions) The definitions of terms used in this Ordinance shall be as follows:
1. The term "social enterprise" means an enterprise referred to in subparagraph 1 of Article 2 of the Social Enterprise Promotion Act (hereinafter referred to as the "Act");
2. The term "prospective social enterprise" means an enterprise which is yet uncertified as a social enterprise referred to in subparagraph 1, but is substantiated as a social enterprise, such as provision of social services, provision of jobs to disadvantaged classes, etc., and is selected by the Seoul Metropolitan Government for conversion and promotion as a social enterprise;
3. The term "disadvantaged classes" means classes referred to in subparagraph 2 of Article 2 of the Act;
4. The term "social services" means services referred to in subparagraph 3 of Article 2 of the Act;
5. The term "connected enterprise" means an enterprise referred to in subparagraph 4 of Article 2 of the Act.

Article 3 (Establishment and Operation of Social Enterprise Promotion Committee) (1) The Seoul Metropolitan City Mayor (hereinafter referred to as the "Mayor") shall establish the Seoul Metropolitan Social Enterprise Promotion Committee (hereinafter referred to as the "Committee") under the jurisdiction of the Seoul Metropolitan City Mayor (hereinafter referred to as the "Mayor") to deliberate on the matters referred to in the following subparagraphs concerning the establishment and operation of social enterprises and prospective social enterprises (hereinafter referred to as "social enterprises, etc."):
1. Matters concerning the formulation and appraisal of a promotion plan of social enterprises, etc. and an execution plan thereof by year;
2. Matters concerning the designation and cancellation of prospective social enterprises;
3. Matters concerning the operation of and support to social enterprises, etc.;
4. Other matters the Mayor deems necessary for the promotion of and support to social enterprises, etc.
(2) The Committee shall be comprised of not more than 15 members, including one chairperson and one vice chairperson, and the First Administrative Deputy Mayor shall be the chairperson and the vice chairperson shall be elected by the Committee from among its members.
(3) Members shall be appointed or commissioned by the Mayor from among members of the Seoul Metropolitan Council, directors of the relevant offices and bureaus of the Seoul Metropolitan Government, public officials of the relevant administrative agencies, and persons who have profound knowledge and wide experience in social enterprises.
(4) The term of office of a member who is a public official shall be the tenure of office of the relevant public official, and the term of office of a member who is not a public official shall be two years from the date he/she is commissioned; he/she may be recommissioned.
(5) Allowances and travelling expenses may be provided, within the extent of budget, to members, related experts and the relevant persons who attend a meeting of the Committee: Provided, That this shall not apply to cases where a member who is a public official attends a meeting in connection with his/her business.
(6) One administrative secretary shall be assigned to the Committee to conduct its affairs, and a manager or an officer in charge of employment affairs shall be the administrative secretary.
(7) Except for matters prescribed by this Ordinance, the chairperson shall determine necessary matters concerning the operation of the Committee through a resolution of the Committee.

Article 4 (Plan for Promotion of Social Enterprises) (1) The Mayor shall formulate and execute a promotion plan of social enterprises (hereinafter referred to as "promotion plan") of the Seoul Metropolitan Government to enhance social services and create jobs.
(2) A promotion plan referred to in paragraph (1) shall include the following matters:
1. Guidelines for the promotion of and support to social enterprises, etc.;
2. Matters concerning the establishment of infrastructure and the creation of conditions for revitalization of social enterprises, etc.;
3. Matters concerning management support to social enterprises, etc.;
4. Matters concerning training of managerial human resources and education and training of employees of social enterprises, etc.;
5. Matters concerning securing finance for, and financial support to social enterprises, etc.;
6. Other matters necessary for the promotion of and support to social enterprises, etc.
(3) The Mayor shall formulate and execute an execution plan by year in accordance with a promotion plan.
(4) The Mayor shall evaluate the outcomes of a promotion of a promotion plan referred to in paragraph (1) and an execution plan by year referred to in paragraph (3) and open the outcomes to the public on the Internet website of the Seoul Metropolitan Government.

Article 5 (Designation, etc. of Preparatory Social Enterprises) (1) The Mayor may designate a prospective social enterprise from among organizations which are able to develop into social enterprises by separately determining the standards which have relaxed the requirements referred to in Article 8 of the Act and Article 9 of the Decree, and formulate and execute policies for support and promotion leading to it converting to a social enterprise.
(2) Necessary matters concerning the requirements, procedures for and cancellation of designation of a prospective social enterprise referred to in paragraph (1) shall be prescribed by the Rules.

Article 6 (Management Support) (1) The Mayor may give various support, such as professional advice and provision of information in fields of management, technology, taxation business, labor relations, accounting, etc., necessary for the establishment and operation of social enterprises, etc.
(2) The Mayor may entrust a Seoul Metropolitan Government-funded organization or private organization with support affairs referred to in paragraph (1) to promote such support affairs efficiently.
(3) Where the Mayor entrusts support affairs pursuant to paragraph (2), he/she may subsidize all or some of expenses within the extent of budget.

Article 7 (Support of Cost of Equipment, etc.) (1) The Mayor may subsidize or finance expenses for purchase of a site and the cost of equipment, etc. necessary for the establishment and operation of social enterprises, etc., or lease public land.
(2) The Mayor may transfer unused articles, etc. to social enterprises, etc. free of charge.

Article 8 (Financial Support) (1) Where the Mayor deems it necessary for self-sufficiency of social enterprises, etc., he/she may give financial support within the extent of budget.
(2) Procedures for providing financial support referred to in paragraph (1) and required documents, business performance report, cancellation of support and procedures for collection, etc, shall be prescribed by the Rules.
(3) The Mayor shall guide and supervise social enterprises, etc. which eceive financial support, and where he/she deems it necessary, he/she may request them to submit a report or related documents necessary for such business.
(4) The Mayor may request social enterprises, etc. for correction found necessary, following his/her review of reported matters and guidance and supervision pursuant to paragraphs (2) and (3).

Article 9 (Promotion of Preferential Purchase) The Mayor shall preferentially purchase goods or services produced by social enterprises, etc.

Article 10 (Reduction and Exemption of City Taxes) The Mayor may reduce and exempt city taxes imposed on social enterprises, etc. as prescribed by the Local Tax Act and Seoul Metropolitan Government Ordinance on Reduction and Exemption of City Taxes.

Article 11 (Expansion of Participation of Private Enterprises, etc.) The Mayor shall formulate measures referred to in the following subparagraphs so that private enterprises or organizations, etc. in a district may participate in the establishment and operation of social enterprises, etc.:
1. Support for the establishment and operation of exchange and cooperation networks among private enterprises and organizations in a district;
2. The expansion of support to participating enterprises for revitalization of connected enterprises.

Article 12 (Public Relations, etc.) The Mayor may formulate measures referred to in the following subparagraphs to help residents in a district to boost understanding on social enterprises, etc.:
1. Support for the discovery of role models in the district and for the proliferation of such roles;
2. Support for the improvement in the quality of goods and services of social enterprises, etc. in the district and for public relations;
3. The proliferation of perception on social enterprises, etc. by holding expert forums and workshops, etc.