SOVAC Connects Social Enterprises and Social Ventures with ESG Investors

Investment Consultation Program for Social Enterprises and Social Ventures
Monthly Investment Consultations Starting from May

[Asia Economy Reporter Hwang Yoon-joo] SOVAC (Social Value Connect), the largest private social value platform in Korea launched in 2019 at the proposal of SK Chairman Chey Tae-won, is activating the social enterprise investment ecosystem by connecting social enterprises and social ventures with investors to help grow related businesses.

The SOVAC Secretariat announced on the 20th that starting in May, experts including impact investors will provide practical advice related to IR (Investor Relations) to social enterprises and social ventures, and conduct counseling programs that offer actual investments. Social enterprises and social ventures are companies that pursue social values such as environmental protection and providing jobs for vulnerable groups while conducting business activities. This is the first time SOVAC is operating a social enterprise investment counseling program. Going forward, 2 to 3 social enterprises will be able to receive counseling each month.

Companies selected through the SOVAC Secretariat’s screening will meet with professional investors from May to have their business ideas and models validated and continue discussions to attract direct investments. Any social enterprise or social venture with ideas to solve social problems can participate, and applications can be submitted through the SOVAC website by the 28th. SK expects that this year, not only impact investors who emphasize social performance but also general investors will participate due to the growing interest in social value and ESG.

The entire counseling process will be recorded on video and made public on the SOVAC website starting in June. This is to provide information and know-how to social enterprises lacking IR experience while attracting more investors.

Meanwhile, SK Group, which organizes SOVAC, has been focusing on solving social problems through support for social enterprises since the mid-2000s. It has been striving to support various infrastructures and nurture talent to help social enterprises grow by generating actual profits beyond job creation.

A representative example is the establishment of the KAIST Social Entrepreneur MBA in 2013 to cultivate talent, and since 2015, supporting the Social Performance Incentive (SPC) program that provides cash incentives for achievements created by social enterprises. Subsequently, in 2019, SOVAC was launched as the largest private-led social value festival in Korea and a platform connecting related companies, organizations, and people.

Lee Hyung-hee, Chair of the SV (Social Value) Committee of SK Group’s SUPEX Council, said, "Although interest in the investment market for social enterprises is increasing, social enterprises themselves face difficulties in attracting investments due to lack of experience and networks," adding, "We will connect them to expand a sustainable social enterprise ecosystem."