Press

Social economy,' 'social value,' 'social responsibility'…. This year was particularly marked by the power of the word 'social.' It was also a year in which issues facing the entire world—such as the environment, refugees, and gender—could be vividly felt domestically. As Better Future publishes its December issue, the final edition of 2018, it has selected the '10 Major News Stories' that have permeated the public interest sector this year. 01. Moon Government Expands Investment in Social Economy The Moon Jae-in government demonstrated its commitment to revitalizing the social economy from the early stages of its administration. This commitment was reflected in the budget. This year, the total budget invested by nine government ministries in supporting the social economy was 215.7 billion won, a 20.9% increase from 178.3 billion won last year. Additionally, the government released various policies in succession, including the activation plan for social finance (February) and a comprehensive plan for nurturing talent in the social economy (July), lending momentum to the growth of the social economy. 02. Introduction of 'Public Interest Corporation Accounting Standards' Starting this year, 'Public Interest Corporation Accounting Standards' were introduced. As financial statements, which previously varied by corporation, become standardized, the accounting transparency of public interest corporations is expected to improve, and donation culture is also likely to become more active. Explanation sessions for accounting personnel at public interest corporations were actively held. However, to minimize confusion in the field, implementation was deferred for newly established public interest corporations this year or those with total assets of 2 billion won or less. 03. Strengthening 'Social Value' in Public Institution Evaluations Starting this year, social value evaluation indicators—including ▲safety and environment ▲collaboration and mutual prosperity ▲ethical management—are reflected in the government's management evaluation of public institutions. 'Human rights management' must also be prioritized. The National Human Rights Commission distributed the 'Public Institution Human Rights Management Manual' in August, urging the establishment of human rights management systems. Institutions are making efforts to adapt to this new wind of 'social value' by establishing dedicated organizations for social value and holding related workshops. 04. National Pension Adopts 'Stewardship Code' After prolonged debate, the National Pension Service adopted the 'Stewardship Code' (guidelines for institutional investors to exercise shareholder rights) in July. Critics argue that with the implementation of management participation shareholder rights being suspended, it amounted to 'half-baked reform,' while others expect it to contribute to the expansion of socially responsible investment (ESG) and the strengthening of corporate social responsibility (CSR). Meanwhile, the Government Employees Pension Service and the Private School Teachers' Pension Service also plan to adopt stewardship codes next year. 05. Tax Evasion by Public Interest Corporations Belonging to Large Business Groups Detected The government drew its sword against public interest corporations belonging to large business groups. In July, the Fair Trade Commission released 'Analysis Results of Operating Status of Public Interest Corporations Belonging to Large Business Groups,' pointing out that large corporations were abusing public interest corporations for tax benefits and strengthening the control of founding families. Two months later, the National Tax Service conducted a comprehensive survey of approximately 200 public interest corporations of large enterprises, detecting 36 cases of tax omissions and recovering 41 billion won in gift taxes. 06. Full-scale Efforts to Improve 'Donation Transparency' in the Nonprofit Sector As 'donation phobia' spreads, voices of self-reflection within the nonprofit sector have grown louder, stating that 'we must create a transparent donation culture.' The 'Show me the trust' public interest campaign committee, launched at the end of last year, led the way in raising awareness this year by hosting seminars and lectures on donation transparency. The government also lent its support by presenting 'Plans to Improve Donation Transparency and Revitalize Donations,' which included securing donors' right to know and strengthening the management system for public interest corporations. 07. 'Gender' Issue Emerges in the Third Sector The 'gender' issue has emerged in the social economy and civil society. In the impact investment sector, a 'Gender-Perspective Investment Report' (sopoong) was published, and platforms such as 'Wee Connect,' a job matching platform connecting women with career interruptions to social ventures, and 'Under Woman' (Underdogs), a female social innovation entrepreneur development program, also appeared. In civil society, a citizen coalition supporting the 'Me too' movement, which sparked the gender issue, was formed to carry out victim support activities. 08. Misunderstanding and Anxiety: 'Refugees' at the Center of Controversy Last summer, Jeju Island was heated by the issue of Yemeni refugees. As misunderstandings about Islam and vague anxieties about refugee criminals spread, calls for the expulsion of refugees intensified. On the other hand, movements emerged to protect refugees' human rights, including the formation of the 'Refugee Network,' an alliance of 15 refugee support civic organizations nationwide, and the 'Island-wide Committee for Human Rights of Jeju Refugees,' composed of 33 civic organizations based in Jeju. 09. Recycling Waste Crisis Following the implementation of the 'Resource Circulation Basic Law,' which promotes the reuse and recycling of resources for environmental protection, the 'recycling waste crisis' that occurred in April brought heightened social attention to environmental issues. As a result, citizen participation campaigns promoting 'No Plastic' and 'Zero Waste' in daily life were actively conducted. Franchise cafes additionally introduced reusable cups to reduce the use of disposable cups in stores. 10. Warm Spring Wind Between South and North: Private Assistance to North Korea 'Stirs' Following President Moon Jae-in's meeting with North Korean State Affairs Commission Chairman Kim Jong-un at Panmunjom on April 27, a warm spring wind began to blow in inter-Korean relations. Influenced by this, there is a growing atmosphere of private organizations providing assistance to North Korea resuming their activities. Since last month, organizations providing assistance to North Korea—such as the Children's Medicine Support Headquarters, the Inter-Korean Cooperation Private Organizations Council, and the Korean Community Movement for Mutual Help—have visited North Korea to discuss future cooperative projects with North Korean officials.