Why Finance Should Be Driven by Values: The Move Toward a Value-Based Financial Cooperative

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 In a previous post, I explored how Korea’s traditional community practice of “gye” has evolved into modern forms of social finance.

 

👉Related article

Korea’s Traditional Community Finance “Gye”: Its Expansion into Social Finance (Part 1) 

From Traditional Gye to Social Finance in Korea (Part 2)


On the 20th, the 2026 Global Forum on Value-Based Finance was held, where a declaration for promoting a value-based financial cooperative was presented. This reflects a growing effort to create a financial system that operates not only on profit, but on values.

 

In this post, I will share key discussions from the forum and examine why finance should be guided by social purpose.

 

Poster of the Global Forum on Value-Based Finance held on the 20th(Source: Social Innovation Entrepreneur Network)

Why Do We Need a Value-Based Financial Cooperative?

 

To some extent, the question of “why” has already been addressed in previous posts. However, it is worth revisiting.

 

Consider a small business or local entrepreneur who urgently needs funding. In most cases, they must rely on loans or financial institutions. However, for smaller organizations, accessing finance is often extremely difficult.

 

Financial institutions typically assess loan eligibility based on creditworthiness, including factors such as existing debt, repayment history, revenue, profit, and business track record. These criteria create high barriers for small enterprises. As a result, even businesses with strong ideas or growth potential may be forced to give up due to lack of funding.

 

Value-based finance emerges as an alternative to address these limitations. It is a system that evaluates not only financial returns, but also social value and potential.

 

For example, Desjardins Group in Quebec, Canada supports regional economies with over 7 million members. Meanwhile, Triodos Bank in the Netherlands applies its own impact investment criteria to ensure that money actively contributes to positive social change.

 

Similarly, in Korea, value-based finance is increasingly seen as a tool for integration and recovery, and as a necessary step toward building a more sustainable society.

 

The Future Direction of Value-Based Finance

 

Value-based finance aims to address social challenges—such as climate change, environmental issues, care systems, and regional decline—through financial activities including lending, investment, and funding support.

 

Importantly, it does not reject the strengths of traditional finance. Instead, it seeks to combine financial expertise and market dynamics with social value.

 

The idea of a value-based financial cooperative goes beyond simply introducing a new system. It begins with a fundamental question: how can finance be shaped through citizen participation?

 

The initiative has involved ongoing dialogue with organizations working in areas such as care, housing, healthcare, and energy. Together, they have explored a central question:

“Where should money flow, and how should it be used?”

 

Through discussion, reflection, and public campaigns, this effort has gradually expanded. At its core, it represents an attempt to redefine the purpose of finance and align capital flows with the direction of society.

 

The declaration announced at the forum reflects these values and emphasizes the need to view finance in a broader and more inclusive way.

 

Conclusion

 

If value-based financial cooperatives are successfully established and public understanding of finance continues to evolve, finance can play a meaningful role in solving social problems and advancing social value.

 

This goes beyond expanding the social impact ecosystem—it contributes to building a more sustainable society as a whole.

 

The flow of money ultimately shapes the direction of society.😎


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