Issue/WT Notices2012.06.07 13:37

[Feb. 23, 2012] WT Newsletter #4- Korean Social Enterprise News 1.

Seoul Metropolitan Government Gets 'Welfare and New Growth‘ in One Shot

Feb. 23, 2012 / Munhwa

Creating a 300 billion won Social Investment Fund to support the underprivileged and to create job positions

Pushing ahead with the Fund of Funds to provide about 1 trillion won for New Growth Business

In the second half of the year (July to December 2012), the Seoul Metropolitan Government will accelerate its economic policy for welfare and new growth business through the Social Investment Fund and the Fund of Funds. It is expected that if this policy is realized, the economic policy of Seoul Mayor Won-Soon PARK, which is focusing on opening job positions, will speed up as well.

◆ Social Investment Fund of 300 billion won to start in July

Seoul announced that the Social Investment Fund, designed to help underprivileged people, young social entrepreneurs, social enterprises and local businesses to create jobs, will be launched no later than July 2012.

To create the fund, Seoul will set up an ordinance and decide the main agent in charge of financial operations. The current ordinance is being prepared as a draft. As for the organization that will operate the fund, both an investment contribution organization currently working under the Seoul Metropolitan Government, such as Seoul Credit Guarantee Foundation, and a newly established corporation will be considered.

A Seoul Metropolitan Government official said that the Social Investment Fund will be operating by the second half of the year, but it might start sooner due to an order from Mayor Park to speed up the process.

Mayor Park had promised during his election campaign that he would launch the Social Investment Fund with about 300 billion won for three years. After he was elected, he decided that the Seoul Metropolitan Government and private companies would share responsibility for the budget equally. Seoul will be in charge of paying 50 billion won, half of this year's budget.

◆ Creating the Fund of Funds with about 1 trillion won is under consideration

Seoul has been discussing the creation of the Fund of Funds with about 1 trillion won for new growth business. Seoul invites public participation in a study to analyze the validity of creating the Fund of Funds by March 5th. If the validity is confirmed, the fund will begin to take shape in the second half of the year.

However, Seoul is proceeding cautiously until the study results are available due to the large scale of the project. Finance, travel, IT convergence, bio medical, green industry, design and fashion are considered new growth engine industries.

Hyun-Mi LEE

Translated: by Ha-Neul KANG

Edited: by Patrick Ferraro

Posted by hamkke