Procedure for Authorization to Establish a Social Cooperative — Confirming the Competent Ministry and the 40% Main Business Requirement

Procedure

1. 1. Settle the main business and the competent ministry

   Decide the type of main business, such as the local community project type or the employment of vulnerable groups type, and find the central administrative agency in charge of that business. Choosing the wrong authorizing ministry delays even the filing, so settle this first.

2. 2. Recruit promoters and draft the articles of association

   There must be at least 5 promoters. The articles of association must contain the mandatory items under Article 86 of the Framework Act on Cooperatives and reflect the prohibition on dividends to members and the rule that at least 30% of the surplus is set aside as a legal reserve.

3. 3. Hold the inaugural general meeting

   Give public notice at least 7 days before the inaugural general meeting. The articles of association, the business plan and the election of officers are resolved with a majority of the persons who consented to the establishment present and at least 2/3 of those present voting in favor. The minutes are a key part of the authorization documents.

4. 4. Apply for authorization for establishment

   Apply to the competent central administrative agency for authorization for establishment. Requests for supplementation are reduced when the business plan shows in figures that the main business accounts for at least 40%.

5. 5. Capital contribution, registration and business registration after authorization

   Once authorization is granted, pay in the capital contributions, complete the registration of establishment within the time limit, and then complete business registration. Check the registration deadline again against the authorization certificate and the relevant statutes.

Required documents

• Application for authorization for establishment
• Articles of association
• Public notice and minutes of the inaugural general meeting
• Business plan and income and expenditure budget
• List of officers and list of persons who consented to the establishment
• Documents on capital contributions and materials calculating the share of the main business

Fees

There is no government fee for the application for authorization itself; the cost of the registration of establishment and the registration and license tax are separate. The office's fee for preparing cooperative establishment documents starts at 1,000,000 won and varies with the length of the business plan and the scope of responses to supplementation requests. We will review your business concept and advise you on the fee after a consultation.

See fees and official charges for this service →

Legal basis and review date

• Framework Act on Cooperatives, Article 85
• Framework Act on Cooperatives, Article 86
• Framework Act on Cooperatives, Article 93
• Framework Act on Cooperatives, Article 97
• Enforcement Decree of the Framework Act on Cooperatives, Article 17
• Enforcement Decree of the Framework Act on Cooperatives, Article 32
• Enforcement Decree of the Corporate Tax Act, Article 39
• Framework Act on Cooperatives, Article 116

Checked against the statutes on 2026-10-05

Statutes and public notices change, so each case needs to be checked individually. Statute titles are given in English for reference. The Korean statutes are the authoritative text.

Check these first

• Choosing the wrong authorizing ministry delays the filing. Settle the ministry competent for the main business first.
• The inaugural general meeting is accepted for the authorization documents only if the public notice 7 days in advance and the quorum for resolutions are observed.

Frequently asked questions