New Release: Korea's First 'Social Economy Enterprise Evaluation System' Opens

[Asia Economy Reporter Kwon Haeyoung] The Korea Credit Guarantee Fund announced on the 1st that it will launch the ‘Social Economy Enterprise Evaluation System,’ which evaluates social economy enterprises focusing on social value.

The Social Economy Enterprise Evaluation System is the first standardized evaluation model for social economy enterprises developed in Korea. Unlike existing evaluation models centered on financial assessment, it is specialized for social economy enterprises by evaluating the realization of social value and sustainability.

This evaluation system operates as a web-based open platform. It was developed to be used not only by banks and policy financial institutions that have their own evaluation systems but lack experience in social finance support, but also by social finance specialized institutions without their own evaluation systems. Currently, more than 30 institutions, including regional credit unions and private social finance intermediary organizations, have expressed interest in using the evaluation system.

If external organizations related to social finance wish to use the system, they can do so after registering as members and obtaining approval from the Korea Credit Guarantee Fund. When user institutions input data about social economy enterprises into the platform, they receive a social finance grade evaluated in 10 steps and an evaluation report.

A representative from the Korea Credit Guarantee Fund stated, “The Social Economy Enterprise Evaluation System provides a standard evaluation framework to institutions willing to engage in social finance but lacking sufficient evaluation know-how,” and added, “We will continue efforts to revitalize social finance through various institutional arrangements related to the social economy.”

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