[APD 2018: Sustainable social finance ecosystem to create social values] Seoul Metropolitan Government

Category: 
East Asia
Class: 
Social finance

Presented at: Asia Policy Dialogue, Seoul 2018

Organisation: Department of Social Economy Policy, Division of Social Economy, Seoul Metropolitan Government 

Date: July 6th, 2018 

Presenter: Ms. Suim Noh (Deputy Director) 

Contacts: happyend@seoul.go.kr

Summary

The Seoul city has been having 3% of continuous growth. However, considering the increase price the actual growth rate is 1%. Thus, the overall growth is stagnant. In addition, there are many problems that the city faces such as low birth rate, high real estate prices making it impossible to live a happy life. Seoul institute must implement new ways to resolve economic issues such as unemployment and housing fee. The Seoul government are thinking of important issues such as social finance, providing capital to Social enterprises. Based on the government funding, social investment fund has started in 2012 with the purpose to support social enterprises.

Investment fund

67.5 billion won was accumulated for investment funds of which the Seoul city comprises of 55 billion Won and credit union private sectors of 12billion Won.

Social housing

Housing provided to youth and seniors at 80% of the market price. We utilize empty and old houses. Projects operated by housing cooperatives and have facilitated 381 homes. Social funds are focused on care programs. Community based programs for seniors and children consists 50% of all investments. Staying alone program supports the senior citizens. Low birthrate is another serious problem. We have started a Day Care service where professional child carers visit places where mothers want them to be. This platform gives trust. Gentrifiaction. This is when rent/ commercial building prices soar in a short time and the owners of the stores are driven out of vibrant areas. Social investments allow low price rent to business owners with contracts lasting more than a 5-year term. This is to provide Social owners to have stable activities.

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