In 2007, Korean government enacted the Social Enterprise Promotion Act to overcome the problem of unemployment and meet the demand of social services. Since 2007, when Korea made the Social Enterprise Promotion Act effective, until February 2012, 644 businesses have been certified as social enterprises. And korean government has the object to make 1,000 social enterprises by the year 2012, and supports the social enterprises with professional consultation for management, technique, taxation, labor affaires, accounting and other necessary information by the Minister of Employment and Labor. The purpose of this study was to research on the Institutional Arrangements of Community Based Social Enterprises. To achieve this purpose, this study analyzed the conditions of social enterprises through preceding studies. The social enterprise was defined as those enterprises which trade in goods or services for a social purpose through the employment of people from a disadvantaged community, and was recognized by the Minister of Labor. So, this study suggests an active progress for the revision of the backward third sector legislation for the sustainable development of the social enterprise sector.