Choi Tae-won: "Future Growth Model Must Achieve Both Economic Growth and Reduction of Social Costs"

SK Establishes System Linking Reduced Social Costs to Economic Gains

468 Companies Create Total Value of 536.4 Billion Won Over Past Decade

"Exploring Methodologies to Maximize Happiness"

Choi Tae-won, Chairman of SK Group, diagnosed the crisis facing the Korean economy as a structural problem, not simply a slowdown in growth, but a combination of insufficient domestic demand and increasing social costs. He emphasized that the future growth model should be redesigned to simultaneously achieve both economic growth and a reduction in social costs, rather than focusing solely on increasing gross domestic product (GDP) as in the past.

At the 2026 Value and Growth Forum held on the 10th at the Conference Hall of the Korea Foundation for Advanced Studies in Seoul, Chairman Choi stated, "If social problems are not resolved, the costs of welfare and social conflict will continue to rise, which could ultimately create a vicious cycle that restricts economic growth itself." He added, "A new capitalism must include social value within the function of growth, and for social value to spread, the establishment of measurement and reward systems is a key task."

Chairman Choi Tae-won of SK Group is speaking at the "2026 Value and Growth Forum" held on the 10th at the Conference Hall of the Korea Foundation for Advanced Studies in Seoul. Social Value Institute

The 2026 Value and Growth Forum was organized under the theme of "Breakthroughs for Low Growth: Changing Solutions," aiming to reexamine the relationship between economic growth and social value and to seek sustainable growth models. This event served as a venue for SK to present the results of its decade-long experiment to quantify the creation of social value in order to reduce both economic growth and social costs and to continuously incorporate these results into its management. The so-called "Social Progress Credit (SPC) Project" has operated by measuring the outcomes of activities addressing social issues and recognizing those outcomes as economic value for rewards. In this system, the credits can take various forms with market exchange value, such as cash incentives, tax credits, bonds, or securities. The core structure of the SPC Project is that as more companies participate in solving problems, this not only addresses national social issues but also increases the economic return for the participating companies.

Over the past 10 years, 468 companies have participated in the SPC Project, generating a total of 536.4 billion won in social value. In proportion, approximately 76.9 billion won in cash incentives were awarded. According to the Social Value Research Institute, which has overseen the SPC Project, companies participating in SPC showed an average of 34% higher sales compared to non-participating companies. Companies that received cash incentives for performance created about three times more social outcomes than companies that did not receive incentives. SK Group companies have been quantifying, measuring, and announcing their social performance in monetary terms.

Chairman Choi candidly shared his motivation for pursuing the SPC Project. He said, "The core question was whether reducing social unhappiness, or conversely, creating happiness in society, deserves to be rewarded." He continued, "If such actions are indeed worthy of reward, the next question was who should provide the reward and to what extent." He added, "I wondered whether rewards would lead to increased happiness creation and realized that another system was needed to solve social problems." He further explained, "I thought about what methodology could maximize happiness, and concluded that unless we experiment and accumulate results over a long period, we cannot institutionalize such a system. That is why we have continued this project for 10 years."

Chairman Choi stressed that this social value-based economic model can be a new growth strategy, not merely welfare or public interest activities. He explained that in the process of solving social problems, new markets and industries could be formed, which would have a positive effect on expanding domestic demand and revitalizing the economy.

Chairman Chey Tae-won of SK Group (left) is engaged in a discussion at the '2026 Value and Growth Forum' held on the 10th at the Korean Higher Education Foundation Conference Hall in Seoul, with Minister Yoon Hojung of the Ministry of the Interior and Safety (center), in the session 'Growth Strategy through Conversation: Finding Solutions from Policymakers and Entrepreneurs,' moderated by Professor Chang Yongseok of Yonsei University's Department of Public Administration (right). Social Value Research Institute

He also pointed out, "Traditional GDP indicators have not sufficiently reflected social or environmental value," emphasizing, "There is a need to discuss new growth indicators that encompass social and environmental values."

Chairman Choi further emphasized the need for broader participation in the creation of social value. He said, "The key is how many people can be brought into growth that includes social value," adding, "I believe all stakeholders aiming for growth must be aligned, and the public should be able to empathize with growth and say, 'I want to participate as well.'"

Yun Ho-jung, Minister of the Interior and Safety, who had a discussion with Chairman Choi on this day, announced plans to strengthen the foundation for solving social problems by promoting the Basic Law on Social Solidarity Economy and expanding financial support. Minister Yun stated, "To achieve social problem-solving and economic growth simultaneously, a new growth ecosystem in which government policy and private sector innovation work together is required." He continued, "It is important to create a policy environment where social problem-solving activities can expand within a sustainable market structure, rather than relying solely on government support, through cooperation between the private sector and government."

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