The Korea Social Value and Solidarity Foundation (KSVSF), referred to as SVS, hosted a meeting on May 13th at Merryhere in Seongdong-gu, Seoul, to propose and discuss policies for the revitalization of social finance under the theme, “Policy Tasks for Social Finance Revitalization in the New Administration.”
The meeting was attended by executives and staff from various social finance intermediary organizations, activists, and experts, including KSVSF, MY Social Company, Shinnaejohab, Oh My Company, Dongjak Credit Union, Impact Square, GSG Impact Korea, PPL, and Urihamkke Cooperative Union. Key political figures present were Bok Ki-wang, Chairman of the Social Economy Committee of the Democratic Party of Korea, and Choi Hyuk-jin, Vice President of the Minjoo Institute.
Social finance is defined as finance that primarily pursues social value or pursues it in balance with financial value. Sub-sectors like microfinance (protecting the vulnerable), community finance (creating local circular economies), and impact finance (driving social innovation) have historically prevented the destruction of public interest and spread alternatives during periods of socio-economic change.
📈 Social Finance Forum’s 3 Strategies and 9 Tasks
The Social Finance Forum announced plans to comprehensively pursue three major strategies and nine detailed tasks for social finance revitalization:
Strategy 1: Develop Social Value Investors and Expand Resources
- Establish a public-private cooperative social investment wholesale fund and provide seed funding.
- Support social investment by public benefit corporations through the introduction of a Public Interest Investment System.
- Promote participation and funding from financial institutions in social finance.
Strategy 2: Develop Appropriate Funding Methods and Foster Intermediary Organizations
- Establish new Social Impact Investment Associations and form Impact Secondary Funds.
- Enact the legal basis for Social Impact Bonds (SIB) and support local government implementation.
- Overhaul laws and systems to improve the operation of local government Social Economy Funds.
Strategy 3: Vitalize Solidarity Finance to Promote Cooperation Among Social Economy Actors
- Support the creation of social solidarity funds by region, industry, and sector.
- Allow credit unions to invest and equity-fund social economy enterprises.
- Provide tax benefits to encourage public participation in social investment.
Kim Hyun-dae, Chairman of the Board, SVS, emphasized that the role of social finance is essential for the sustainability of the social economy. He stressed the urgent need for securing resources dedicated to public benefit and overhauling the legal system to fully realize the potential of the social economy.
Bok Ki-wang, Chairman of the Social Economy Committee, acknowledged the proposals, stating that the committee would treat them as critical tasks. He made two firm commitments: to pass the ‘Framework Act on Social Economy’ this year and to restore the budget to the 2023 level in next year’s budget.
- Photographs are from Lifein (https://www.lifein.news/news/articleView.html?idxno=18945)