Social Finance: The Flow of Money That Changes Society
The Korea Social Value Solidarity Fund is working to create a financial ecosystem that supports the growth of social economy enterprises. (Source: Screenshot from the Korea Social Value Solidarity Fund website) Why Social Finance ? Traditionally, finance has focused on maximizing profits. However, as social issues like climate change , inequality , aging populations , and regional decline intensify, there is a growing global movement to use capital to address these problems. Amid this shift, the concept of Social Finance has emerged. What is Social Finance? When I first heard the term social finance, the first question that came to mind was “How is it different from conventional finance ?” The answer is straightforward. Social finance is not just about generating profit; it aims to simultaneously solve social problems and expand social value. In other words, social finance considers both financial returns and social/environmental impa...