SK Group and Shinhan Financial Group are joining hands to create an ecosystem for creating social values and to vitalize social finance.
Chairman Choi Tae-won of SK Group and Chairman Cho Yong-byung of Shinhan Financial Group exchanged a MOU (Memorandum of Understanding) to create social values and to exchange their own capabilities and experiences.
These groups are going to cooperate in looking for promising social companies and social venture companies and vitalizing financial ecosystem for social companies, providing support for improving competitive edge and capabilities of social companies, and developing measuring systems for social values.
These groups are going to form a private equity fund worth $17.6 million (20 billion KRW) exclusively for social companies by next month. Shinhan Financial Group and SK Group finished investing $7.94 million (9 billion KRW) and $5.29 million (6 billion KRW) respectively and they are going to invest additional $4.41 million (5 billion KRW) by end of this year. Candidates for this investment will be social companies and social venture companies. Shinhan Financial Group will be in charge of operating this investment.
SK Group will provide a system for measuring social values that are necessary to select candidates. Since 2016, SK Group has been operating a social impact incentive program that pays incentives to social companies depending on how much they contribute to solving social problems.
Based on this measuring system and its financial capabilities, Shinhan Financial Group is going to select candidates and help these social companies to grow.
Staff Reporter An, Hocheon | hcan@etnews.com