Chey Tae-won, chairman of SK Group, emphasized the need to change market rules so that social value can lead to tangible economic rewards. He envisions an economic system that allows for greater capital investment in solving social issues, moving beyond the social value measurement and reward experiments he has pursued over the past decade.
According to SK, the Social Enterprise World Forum (SEWF) is hosting its first Ecosystem Leadership Exchange program in Seoul from October 12 to 15, in collaboration with the Social Value Research Institute. SEWF serves as a global platform connecting social entrepreneurs, governments, businesses, and investors from around the world.
This event marks the launch of SEWF's new global leadership program, with Korea selected as the inaugural host. Participants from 19 organizations across 15 countries, including Scotland's Minister for Business, will explore Korea's social economy ecosystem and discuss how to apply policies and market strategies from their respective countries.
During the opening session, Chey delivered a speech outlining his social value experiments and future vision.
Chey's social value initiative began with the concept of Social Performance Contracts (SPC) proposed at the World Economic Forum (WEF) in Davos in 2013. The aim is to measure the social value created by companies in monetary terms and provide corresponding economic rewards to encourage more businesses to engage in solving social problems.
Since 2015, SK has operated an SPC project that measures social performance among domestic social enterprises and provides cash incentives based on those measurements. Recently, discussions have expanded to include ways to allow measured social value to be traded in the market.
This initiative has evolved into a call for change in the global economic system. A report titled 'The Impact Economy: Turning Disclosure into Demand,' co-published by the WEF Schwab Foundation and the Social Value Research Institute on October 8, highlighted SK's SPC experiment as a key example.
In the report's joint preface, Chey stated, "We need rules and mechanisms that allow social value to operate economically," stressing the necessity of changing market rules.
The report pointed out structural limitations that prevent the recognition and funding of social value, despite advancements in awareness and measurement technology. It proposed a transition to an 'Impact Economy' where social performance is acknowledged and rewarded within market and financial systems.
The SEWF event aligns with this awareness. Participants will visit the National Assembly, public institutions, and businesses to examine Korea's policies and financial structures related to the social economy.
SEWF and the Social Value Research Institute also published a joint report analyzing the development process of Korea's social economy ecosystem. The report describes Korea as a 'living laboratory' where government, businesses, and civil society collaboratively experiment with new policies and market mechanisms.
Na Seok-gwon, head of the Social Value Research Institute, remarked, "Relying solely on goodwill to shift economic resources toward solving social issues has its limits, making it essential to find new solutions that connect social performance with economic outcomes."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.