Measuring Social Value in Korea’s Social Economy (Part 2)

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In 2023, international speakers were invited to a forum highlighting the importance of social value measurement.(Photo by Milly) 


In the previous post, I talked about why social economy organizations in Korea — such as social enterprises, cooperatives, village enterprises, self-support enterprises, and social ventures — need to measure their impact.

In this post, I’ll look at how these organizations are actually measuring the impact they create.

 

Korea’s representative approaches to impact measurement include the Social Value Index (SVI) and the Social Progress Credit (SPC).

 

👀Social Value Index (SVI)

 

One of the government-led methods for measuring impact is the Social Value Index (SVI).

The Korea Social Enterprise Promotion Agency, a public institution, has developed this index to assess the impact created by various social economy organizations.

 

In 2023, the Korean government officially announced the introduction of the SVI system.

The goal is to measure the amount and type of impact each organization generates and use that data to allocate public resources more effectively.

This system provides a basis to assess the social value created by each organization and supports their long-term sustainability through evidence-based policy and funding.

 

👀Social Progress Credit (SPC)

 

Another leading project in Korea’s impact measurement landscape is the Social Progress Credit (SPC), run by the Center for Social Value Enhancement Studies (CSES).

The SPC program quantifies a company’s social performance in monetary terms and provides financial incentives based on the results.

 

This is not just about offering blanket support; rather, it’s a performance-based model that aims to secure the sustainability of social value-creating enterprises.

Many social economy organizations in Korea fulfill public functions by addressing social problems through business, and this outcome-based support helps create a foundation for their continuity.

 

Recently, some local governments in Korea have partnered with CSES to launch regional SPC initiatives.

These programs visually show how much social value local enterprises are creating — and how that translates into monetary value.

 

🔥The Evolving Landscape of Impact Measurement in Korea

 

When discussions about the need for impact measurement first emerged, many on the ground expressed skepticism:

“Do we really need to measure work that is already meaningful for society?”

“Is it even possible to objectively measure the value we create?”


However, impact measurement isn’t just about generating numbers.

It’s about presenting the value that social economy organizations create with objective evidence — to governments, investors, and consumers.

Being able to clearly explain this value allows organizations to receive more support, maintain sustainability, and ultimately make a bigger impact in society.


In Korea, the importance of impact measurement is increasingly emphasized and spreading across the sector.

For social economy organizations, it’s a practical tool to articulate, clarify, and amplify their value.

 

I hope more and more organizations will adopt these practices and gain the recognition they deserve for the positive change they’re making in the world.


💗Don’t miss Part 1

Measuring Social Value in Korea’s Social Economy (Part 1)


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