Social Value Research Institute's 'Social Performance Incentive' Model to Be Implemented in 15 Regions Nationwide

Business Agreement Signed with Ministry of Employment and Labor

Measuring Social Outcomes Created by Companies

Providing Project Funding Through Incentive-Based Support

The Social Value Research Institute, chaired by Chey Tae-won, Chairman of SK Group, announced on the 24th that it will jointly promote the "Project to Promote Social Value Creation" through a business agreement with the Ministry of Employment and Labor. The core of this project is to measure the social achievements created by companies and provide project funding in the form of incentives proportional to these achievements.

This agreement was established to systematically measure the social value generated by social enterprises and other social solidarity economy organizations, and to foster a collaborative system between the government and the private sector in order to spread a performance-based compensation system based on these achievements.

Chairman Chey Tae-won of the Korea Chamber of Commerce and Industry is applauding at the opening ceremony of the "KCCI, 1st Social Value Festa" held on September 12, 2024, at COEX in Gangnam-gu, Seoul. Photo by Kang Jinhyung aymsdream@

Since 2015, the Social Value Research Institute has been operating a model through the Social Performance Incentive (SPC) program, which measures social value in monetary terms and provides compensation proportional to performance. Over the past 10 years, it has assessed that 468 companies have created social value amounting to KRW 500 billion and has provided KRW 71.5 billion in incentives, thereby demonstrating the effectiveness of the model.

The Ministry of Employment and Labor plans to link this performance-based compensation model to policy. The Project to Promote Social Value Creation will be carried out in 15 metropolitan local governments nationwide (excluding Sejong and Daejeon). The support scale is set at up to 15% of the social performance value created in the Seoul metropolitan area, and up to 20% in non-metropolitan areas. Evaluation indicators are centered on four fields: ▲ provision of social services ▲ job creation ▲ community cooperation ▲ innovation and environment. The amount of support for each company is determined based on the evaluation results. (Preliminary) social enterprises that have received a "good" or higher rating in the Social Value Index (SVI) evaluation within the past three years can receive up to KRW 100 million per company, while other social solidarity economy organizations can receive up to KRW 50 million. The support funds can be used for expanding activities that create social value, including research and development, market expansion, and education and training.

Na Seokkwon, CEO of the Social Value Research Institute, stated, "It is highly meaningful that the experience and expertise accumulated through the SPC in measuring social performance over the past 10 years has now been institutionalized as a government policy and can be utilized more broadly in the field." He added, "Through cooperation with the Ministry of Employment and Labor, we aim to contribute to the expansion of social value measurement and compensation throughout society."

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