Institute for Social Value: "Korea's Policy, Market, and Private Sector Combine in a 'Hybrid Ecosystem'"

Joint Report Published by the Institute for Social Value and SEWF

Spotlight on Performance-Based Finance Model Using Social Progress Credit

Global Leadership Exchange to Be Held in October

The Institute for Social Value, chaired by Chey Tae-won, Chairman of SK Group, announced on May 6 that it has jointly published a report titled "Designing Hybrid Ecosystems: Korea's Experiences and International Lessons" in collaboration with the Social Enterprise World Forum (SEWF).

Report titled 'Designing Hybrid Ecosystems: Korea's Experience and International Lessons,' jointly published by the Social Value Research Institute and the Social Enterprise World Forum (SEWF). Social Value Research Institute

According to the report, Korea's social economy began with civil society-led activities aimed at overcoming crises. It quickly grew after the enactment of the Social Enterprise Promotion Act in 2007, which institutionalized these efforts. The government established the ecosystem's foundation through various policy tools such as a certification system, subsidies, and public procurement, rapidly building a densely structured institutional base for the social economy.

Recently, the report assessed that the system has evolved beyond a policy-centered structure into a "hybrid system," where policy, market, and civil society all function together, as market and private sector participation has expanded.

In particular, the report defined Korea as "an evolving experimental ecosystem rather than a completed model" and analyzed it as a case that demonstrates the social economy can function as an important economic component even in a highly developed economic environment.

The report highlighted the Social Progress Credit (SPC) as a representative innovation case in Korea's social economy. Introduced in 2015 by SK Group and the Institute for Social Value, SPC is a model that monetarily measures social value and provides cash incentives proportional to outcomes.

The report also analyzed the features of the Korean model through comparative analysis with Quebec, Canada and Scotland, United Kingdom. It found that Korea possesses distinctive competitiveness in the government's strong leadership, strategic partnerships with large corporations, and sophisticated performance measurement capabilities.

Especially, the structure in which corporations participate in ecosystem design—beyond simply providing sponsorships—and the performance-based financial models such as SPC, were analyzed as internationally notable elements.

Nah Seok-kyun, CEO of the Institute for Social Value, stated, "This joint report demonstrates that Korea's social economy is recognized as a meaningful example on the international stage," adding, "Going forward, the institute will continue to promote global cooperation and dissemination based on Korea's diverse social and solidarity economy experiences, including the SPC."

Meanwhile, the "1st SEWF Ecosystem Leadership Exchange," organized by SEWF and co-hosted by the Institute for Social Value, will be held in Seoul from October 11 to 15. Global policymakers, social finance experts, and ecosystem leaders from around the world are expected to participate, visit Korea's social economy sites, and explore ways to apply these practices to their respective national policies.

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