The social economy in network governance for area-based regeneration in South Korea

The social economy has become increasingly relevant in local regeneration, especially South Korea’s declining inner cities. This study investigates the role of social economy organizations (SEOs) within the network governance framework, focusing on three cases – Suncheon-si, Mokpo-si, and Gwangju Dong-gu – to assess SEOs’ network potential and limitations. Using Social Network Analysis (SNA) and in-depth interviews, this study reveals locality-specific network dynamics within and beyond government-led initiatives. In Suncheon-si, strong local government intervention facilitated the connections between regeneration projects and SEOs, as well as across broader sectors, though SEO solidarity remained limited. Mokpo-si demonstrated open and cohesive networks with significant roles played by new and younger SEOs, despite the comparatively smaller scale of the social economy. Gwangju Dong-gu displayed generally well-connected networks, with SEOs closely linked across regeneration projects, the social economy sector, community groups, and network organizations. These findings highlight that each locality has unique potential for SEOs to support local regeneration by leveraging diverse forms of social capital. SEOs can act as intermediary agents, enhancing network governance and evolving as local ecosystem actors. This study suggests that local regeneration policies should acknowledge the diverse roles of the social economy and tailor local governance structures to incorporate these entities effectively.