This study is aimed at examining the current state of not-for-profit organizations in Korea, analyzing problems they face and exploring ways to strengthen their roles, functions and capabilities. To this end, the first-year study reviewed the laws and systems, and precedent studies related to not-for-profit organizations, identified their problem situations, and also looked at the systems of not-for-profit organizations in selected countries for implications. For the second year of this study (2012), a practical conditions survey and an evaluation project are planned to examine further the identified problems in the first-year study, utilizing as the basic data the results of the first-year study.
The main problems pointed out as associated with not-for-profit organizations have been those concerning taxation, governance, and organizational capacity. Not-for-profit medical organizations have been criticized as lacking publicness and unable to balance cost and quality. Social welfare organizations have problems related to privatization and human rights issues. As for school organizations, privatization, management, and vulnerability to foreign competition in terms of capital and contents due to the opening of the education market are main concerns. Religious organizations have problems in fiscal and managerial transparency. Issues such as creating utility both in art and in economic efficiency, dual organizational structure that often results in conflicts between the government and the management, bureaucracy, and labor-managment conflict are the problems culture and arts organizations are facing. As Korea needs a sweeping reform of not-for-profit systems, countries that have already undergone successful reforms in their not-for-profit systems which used to be similar with those of Korea can provide meaningful lessons. In particular, much could be learned from foreign cases in enhancing such values as 'public good' or 'not-for-profit feature' that should continue to characterize Korea's not-for-profit organizations.