AN ISSUE ON LEGAL PERSONALITY OF COOPERATIVES IN FRAMEWORK ACT ON COOPERATIVES IN SOUTH KOREA: ITS SIDE EFFECT AND DIRECTION FOR REVISION

Resumo

This article explores an issue on legal personality of cooperatives under the Framework Act on Cooperatives (FAC) in the Republic of Korea. The FAC defines cooperatives as “legal entity” and social cooperatives as “non-profit corporation”. This division led to considerable confusion in Korea in terms of the co-operatives’ practices between profit-making ones and non-profit ones, and it is necessary to resolve this juridical segmentation. This article traces background of FAC which created this legal segmentation and suggests the unification of both co-operatives as “cooperative entity” with the aim of allowing them to be certified or registered as “social cooperatives” when they yield high social value.