Inside Korea’s Social Impact

  “Every time one of our products is sold, a job is created for someone from a vulnerable group.”   When you spend time reporting on the social solidarity economy, you often meet founders whose eyes light up as they speak. They passionately explain how their products create positive change in the world. Their faces are filled with anticipation, excitement, and a deep sense of purpose.   But those conversations often end with the same bitter and frustrated question.   “If we’re doing something so meaningful for society, why don’t people open their wallets?”   Many impact-driven companies believe that their social mission is their strongest competitive advantage. But at some point, an uncomfortable truth has to be faced: sometimes, that very “good story” becomes a distraction from the core of the business — and can even turn into a poison that blocks revenue.   In this post, I want to talk about the paradox of “doing good.” It may feel unc...

Banner of the 2nd Social Value Festa.(Photo by Milly)  From August 25 to 26, at COEX in Gangnam, Seoul, a special gathering took place where Korea’s changemakers came together for the 2nd Korea Social Value Festa.   This annual event, now in its second year, brings together enterprises, organizations, and changemakers dedicated to creating social value in Korea. It serves as a meaningful platform to share experiences, insights, and achievements. This year’s theme was “Designing the Sustainable Future.”   The entrance of the exhibition hall was bustling with people.(Photo by Milly)  The moment I stepped into the venue, I could feel the passion and energy overflowing, almost heating up the summer air even more. Having attended last year as well, I was struck once again by the sight of so many people continuously devoted to solving social issues and taking action on the ground.   Innovative technologies, including AI for expanding social value, drew parti...

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...

 Around the world, social economy organizations don’t simply pursue profit. Instead, they aim to create a positive impact on people, communities, and the environment. For instance, they provide jobs for marginalized groups like the elderly or people with disabilities, or run sustainable businesses that protect the environment. These are all common activities carried out by social economy organizations. Discussions on how to measure the impact and value of social economy enterprises continue to evolve.(Photo by Milly)  But can we actually see the positive impact they create? Most social economy organizations say they strive to employ people, protect the environment, and improve communities. But in reality, explaining exactly who they impacted, how, and to what extent, is not so simple. This is why in Korea, “impact measurement” has recently drawn attention. Korea’s social economy has largely developed under public sector leadership. As a result, many organizations have relied o...

Korea Social Enterprise Promotion Agency logo (Source: Korea Social Enterprise Promotion Agency website) What Is the Social Economy in Korea? In Korea, businesses engaged in social innovation activities are referred to as social economy enterprises. These are not simply non-profit organizations; they are enterprises that aim to solve social problems and create social value through business models. The key difference between social economy enterprises and conventional businesses lies in their core purpose. While conventional companies prioritize profit maximization, social economy enterprises pursue both profit and social value simultaneously. South Korea’s social economy grew rapidly with government support. This is a runway event in Gyeonggi Province introducing local enterprises.(Photo by Milly)  Types of Social Economy Enterprises in Korea Korea’s social economy enterprises are officially recognized and supported by the government. Major types include: Social Enterprises Hybrid ...