Social Value Research Institute: Korea Evolving into a 'Hybrid Ecosystem' Integrating Policy, Market, and Private Sector

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 Social Value Research Institute, chaired by SK Group Chairman Chey Tae-won, announced on May 6 that it has jointly published a report titled 'Designing Hybrid Ecosystems: Korea's Experience and International Lessons' 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 as a civil society-driven movement to overcome crises. Subsequently, with the enactment of the Social Enterprise Promotion Act in 2007, it rapidly institutionalized and grew. The government built the ecosystem's foundation through various policy tools such as a certification system, subsidies, and public procurement, thereby establishing a dense institutional infrastructure for the social economy within a short period.

Recently, the report assessed that the structure has evolved beyond policy-centered frameworks, with expanded participation from the market and private sector. As a result, a 'hybrid system' is emerging in which policy, market, and civil society actors operate together.

The report specifically defines Korea as an "experimental ecosystem in evolution, rather than a completed model," analyzing it as a case that demonstrates how the social economy can function as an important economic component even in a highly developed economic environment.

As a representative example of innovation within Korea's social economy, the report highlights the Social Performance Incentive (SPC). Introduced in 2015 by SK Group and the Social Value Research Institute, the SPC is a model that monetizes social value and provides cash incentives proportional to the results achieved.

The report also features a comparative analysis with Quebec, Canada, and Scotland, United Kingdom, to examine the distinctive characteristics of the Korean model. It concludes that Korea possesses unrivaled competitiveness in terms of strong government leadership, strategic partnerships with large corporations, and sophisticated performance measurement capabilities.

In particular, the report analyzes that the structure in which corporations go beyond simple sponsorship to participate in ecosystem design, as well as performance-based financial models like the SPC, are notable features drawing international attention.

Na Seokkwon, President of the Social Value Research Institute, stated, "This joint report demonstrates that Korea's social economy is being recognized as a meaningful case internationally," adding, "Based on Korea's diverse social solidarity economy experiences, including the SPC, we will continue to pursue global cooperation and expansion."

Meanwhile, from October 11 to 15, the inaugural SEWF Ecosystem Leadership Exchange will be held in Seoul, hosted by SEWF in collaboration with the Social Value Research Institute. The event will bring together global policymakers, social finance experts, and ecosystem leaders from around the world to 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.