SK Social Performance Incentive (SPC) to Expand to Local Governments

SK-Jeonnam, Joint Promotion of Social Performance Incentives
MOU for Revitalizing Social Enterprises

SK Group and Jeollanam-do have agreed to actively cooperate to foster social enterprises and revitalize the ecosystem by jointly promoting the Social Progress Credit (SPC) program.

SK and Jeonnam announced on the 22nd that they signed a Memorandum of Understanding (MOU) to support the activation of the social economy at the SK Seorin Building in Jongno-gu, Seoul. Attendees at the signing ceremony included Cho Kyung-mok, Chairman of the SV Committee of SK Supex Council, Kim Young-rok, Governor of Jeonnam, Koo Young-mo, CEO of Haengboknarae, and Na Seok-kwon, Director of the Center for Social Economy Studies (CSES).

Both parties agreed to jointly promote the Social Progress Credit program led by SK Group Chairman Chey Tae-won and to work together to expand sales channels for social enterprise products. This is the first time SK has engaged in comprehensive cooperation with a metropolitan local government regarding social value measurement, performance-based rewards, and expansion of corporate product sales channels.

The Social Progress Credit program provides "cash incentives" proportional to the "social performance" created by social enterprises. Proposed by Chairman Chey, SK Group has been operating the program since 2015. By the end of last year, over 400 social enterprises participated, generating social performance worth 327.5 billion KRW, and SK Group provided incentives amounting to 52.7 billion KRW accordingly.

Starting this year, SK and Jeonnam plan to select outstanding social enterprises within Jeonnam to participate in the Social Progress Credit program and provide incentives agreed upon by both parties proportional to the social value creation performance.

Additionally, Haengboknarae, a social enterprise established by SK Group, along with SK Store and SK 11st, will form strategic partnerships to expand sales channels for Jeonnam social enterprises’ products. They will support activities such as ▲ TV home shopping broadcasts, △ entry into social enterprise specialty sections in shopping malls, and ▲ promotional sales targeting SK affiliates.

Kim Young-rok, Governor of Jeonnam, said, "Through the partnership with SK, we expect remarkable achievements not only in fostering outstanding social enterprises in Jeonnam but also in creating social value."

Chairman Cho Kyung-mok stated, "Measuring social value and providing cash incentives proportional to it leads to greater social value creation. We expect this virtuous cycle to further activate the social enterprise ecosystem."