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Research Report

The Legal Analysis on the Village Company Development
  • Issue Date 2015-09-30
  • Page 89
  • Price 5,500
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Ⅰ. Background and Purpose
□ Background of this study
○ Current regional economic policy, and community development policies promoted in our country is supported by the activation of subunit of the regional economic organizations as an essential infrastructure, and the legal basis for it is requested from a long time ago
○ Despite “Village Company Development Policy” as regional economic policy and community development policies continue to be performed every year, there is not yet clear legal basis.
○ Since “Village Company Development Policy” is needed for ①, Compliant, customized support for local demand, ② the formation of local voluntary organizations support, ③ sustainable regional policy, This policy should require a legal basis necessary for the local economy
□ Purpose of this study
○ Purpose of this study is to carry out legislative work to legislation, to provide a legal basis in policy implementation for “Village Company Development Policy”


Ⅱ. Main Contents
□ General theory of Village Company
○ Concept of Village Company
- The village company is corporate units of village or town, to enable the local communities through profitable business utilizing the various local resources to provide income and jobs for local residents for regional development
○ Laws in relation to Village Company
- Special Act to enable and support urban regeneration, Social enterprise Promotion Act, Special Act on development in rural areas and improvement of the quality of life, Regional Community supporting Bill, Villages community activation in rural area supporting Bill, Social and economic basic Bill
□ Legislation for “Village Company Development Policy”
○ Needs
- Legislation necessary for the local economy and local communities
- Overcome shortcomings of laws in relation to Village Company
- Need for Supporting Law to be optimized for Village Company Development
○ Concept of Village Company
- Purpose, Definition, Basic principle, Role and duty
○ Village Company Designation
- Designation criteria : corporation of civil law, company of commercial law, the Company cooperatives, agricultural unions, etc, At least 5-founder, A particular person together with parties as less than 50% total equity
- Cancellation and termination of Village Company : Abandonment, Termination of contract, Violation, Not meeting the requirements, Lack of feasibility
○ Governance of Village Company Development
- Top-down system : Establish and implement a plan of local governments within the scope of the basic plan of the central government
- Establish and implement a plan of the local government : Joint planning, Consultation and coordination and plans by the central government, Details of regulations through ordinances enacted
- Committee : Central Committee, Local Committee
○ Village Company Supporting
- Contents of supporting : Financial Assistance, Independence Assistance
- Supporting apparatus : Village Company Supporting Center, Village Company Supporting Organizations


Ⅲ. Expected Effect
□ Material and information used as support for the implementation of policy and legislation
□ Reference used as legal data in the legislation process