Seongdong-gu's 'Social Venture Company' Support Policy Becomes Foundation for the 'Venture Business Promotion Act'

Seongdong-gu Leads with Korea's First 2017 Ordinance on Supporting Social Venture Development and Ecosystem Creation... Establishing a Strong Social Venture Ecosystem with 'Social Venture Hub Center,' 'Seongdong Impact Venture Investment Association,' and 'Seoul Forest Social Venture EXPO'

Company representatives who participated in the Seoul Forest Social Venture Expo held last year and Jung Won-oh, Mayor of Seongdong-gu

Seongdong-gu’s ‘Social Venture Company’ Support Policy Lays Foundation for Venture Business Promotion Act

[Asia Economy Reporter Park Jong-il] Seongdong-gu (Mayor Jung Won-oh) has gained increased attention with the full implementation of the “Special Measures Act on the Promotion of Venture Businesses” (hereinafter referred to as the Venture Business Promotion Act) on the 21st of this month, aiming to build the largest and most robust social venture ecosystem in Korea.

The Venture Business Promotion Act establishes the definition and specific requirements for social venture companies, mandates the conduct of surveys, and provides legal grounds for support such as technology guarantees and investments, thereby laying the foundation for the growth of the social venture ecosystem. It is evaluated that the ecosystem centered around Seongsu Social Valley, solidly built through Seongdong-gu’s pioneering support policies, serves as the background for this development.

“Social ventures,” which pursue social value alongside sustainable profits through innovative business models, have been recognized early on by the district for their growth potential and their role in spreading “positive influence” in society.

In 2017, Seongdong-gu became the first in the nation to enact the “Ordinance on the Promotion and Ecosystem Formation of Social Ventures,” establishing a legal basis for nurturing and supporting them. The district organized a dedicated department to systematically implement various support policies. In alignment, the government (Ministry of SMEs and Startups) officially announced in 2018 its intention to concentrate social venture support capabilities in the Seongsu-dong area, fostering continuous growth centered on the “Seongsu Social Venture Valley.”

In 2018, the “Social Venture Hub Center” was established in Seongsu-dong, operating a comprehensive incubating space to strengthen investment capabilities and provide government project consulting for self-reliance and growth. Various programs such as “Youth Tomorrow Finding” and “Social Venture Startup Support Project” connect youth and companies, while the annually held “Social Venture Innovation Competition” discovers promising companies. To date, a total of 500 million KRW in business development funds has been provided to 50 companies.

To address the most challenging aspect of management?business funding?last year the “Seongdong Impact Venture Investment Association” was formed, securing 2 billion KRW in investment resources through public-private cooperation. By the first half of this year, a total of 800 million KRW was invested in five companies.

Additionally, since 2017, the annual “Seoul Forest Social Venture EXPO” has been held to share achievements, facilitate communication, and create a festival space for coexistence and cooperation, playing a significant role in strengthening the social venture ecosystem.

Jung Won-oh, Mayor of Seongdong-gu, stated, “The number of social venture companies that began to settle one by one in Seongsu-dong in the early 2010s has steadily increased from about 140 in 2015 to approximately 420 today, which is evidence that a well-established social venture ecosystem in Seongdong has created favorable conditions for business. We expect that with this legislative amendment, large-scale policy implementation at the central government level will become possible, and we will actively cooperate where our district can contribute.”

This content was produced with the assistance of AI translation services.