<h1>Civic Assetization: Building a Sustainable Future Together</h1>

 Why Civic Assetization?

 

Recently in Korea, alleyway commercial districts that reflect local characteristics have become popular destinations. Not only Koreans but also international tourists frequently visit these areas, and countless people pass through them every day.

 

As foot traffic increases, the local economy thrives. However, rent prices rise, and long-standing shops and residents are often forced out. This leads to the transformation or loss of local history and culture, a phenomenon known as gentrification.

 

One promising solution to this issue is civic assetization.

 

What is Civic Assetization?

 

Civic assetization refers to residents and community members pooling funds to collectively own and democratically manage various tangible and intangible assets, such as buildings, land, cultural spaces, and renewable energy facilities.

 

The key is that it’s not just about shared ownership. Civic assetization aims to utilize local assets for the benefit of the community and to expand social value over the long term.

 

The main actors are usually organizations in the social innovation and social economy sectors. Cooperatives, social enterprises, and village enterprises often lead fundraising efforts and connect with social finance to secure long-term funding. Because this is not led by government or private companies, residents can take initiative and address local issues themselves.

 

In short, civic assetization allows citizens to take control of the flow of money and build a sustainable foundation for their local community.

Civic Assetization in Korea

 

A representative example is the Habit Together Cooperative.

To cope with rising rents, local residents formed a cooperative, and with contributions from citizens and organizations, they collectively owned a building.

 

This building was opened as a shared space called “Everyone’s Playground”, accessible to all residents and visitors. It is a successful model of citizens creating and managing assets themselves.

 

International Example: Homebaked Bakery in the UK

 

In Anfield, Liverpool, the redevelopment of the area caused local businesses to decline, and the Homebaked Bakery, which had been operating for over 100 years, faced closure.

 

However, local citizens formed a cooperative to save this traditional bakery, raising funds through crowdfunding and other methods. As a result, the bakery reopened and continues its operations today.

 

This case is a prime example of how civic assetization can protect both local economies and cultural heritage.

 

Challenges for Expanding Civic Assetization

 

For civic assetization to take root, several challenges must be addressed.

 

👉Ensuring active participation of residents

👉Legal frameworks and tax incentives

👉Expansion of social finance infrastructure to enable long-term investment

 

Recent reports indicate that rising interest rates and policy changes have made some civic assetization initiatives difficult to sustain. Therefore, institutional support that fits the public ownership model is essential.

 

The Meaning and Future of Civic Assetization

 

Civic assetization is not merely about owning buildings or land.

It represents a social innovation movement in which local communities become the owners of their assets and generate social value.

 

In the coming years, it will be important to monitor how civic assetization develops in Korean society. I will continue to update my blog with the latest cases and trends.