Social Enterprise Policy Funds of 6 Billion Won to Be Operated from January

"Corporate Investment, Youth Job Creation, Strengthening Investment in Non-Capital Region Companies"

A social enterprise worker is visiting a housing-vulnerable household to perform disinfection and sterilization. (Photo by Asia Economy DB)

[Sejong=Asia Economy Reporter Moon Chaeseok] The Ministry of Employment and Labor announced on the 17th that it has formed the 7th social enterprise investment association worth 6 billion KRW and plans to operate funds starting this month. The association was formed with 4.5 billion KRW from the government budget and 1.5 billion KRW from funds contributed by Jeju Free International City Development Center, law firm Delight, Seoil E&M, Extra Mile Communication, and individual investors. Sixty percent of the funds will be invested in fostering social economy enterprises such as (preliminary) social enterprises, village enterprises, and self-support enterprises. Funds will also be allocated to youth job creation and strengthening investments in non-capital region companies.

Social enterprises have faced difficulties in raising funds in financial markets like startups. In response, since 2011, the Ministry of Employment and Labor has combined government budgets and private capital to create a mother fund to generate policy funds and continue investing in social enterprises. Up to this year, the ministry has formed the 7th investment association, raised 40.8 billion KRW in policy funds (26 billion KRW from government budget + 14.8 billion KRW from private contributions), and invested 30.3 billion KRW in 47 social economy enterprises. Since the 6th association formed in 2020, the ministry has been operating 11.8 billion KRW in policy funds by utilizing 8.5 billion KRW of recovered funds from existing investment associations. The ministry stated, "We will actively strive to expand the social enterprise mother fund to serve as a catalyst for the qualitative growth of promising social economy enterprises pursuing social value."

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