South Korea’s SK Group introduces social enterprise fund



South Korea lags behind global and regional peers in raising and allocating impact capital. But several initiatives are bubbling.

The large conglomerate SK Group’s new 13 billion won ($12 million) private equity fund aims to back homegrown social enterprises.

Chairman Chey Tae-won envisions 100,000 social enterprises across the country accounting for about 3% of GDP, up from about 1,700 registered social enterprises in South Korea that now account for 0.25% of GDP. SK has raised 5 billion won from the group’s philanthropic arm and KEB Hana Bank.

Other Korean impact funds include a $63 million fund created by Lee Hun Jai, a former deputy prime minister and finance minister; Wonyoung Kim’s Crevisse; and the Root Impact project from Kyungsun Chung, a member of the Hyundai Group family (listen to the Returns on Investment podcast interview).

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