Companies stationed in Seoul’s Social Venture Hub, which provides one-stop support to young entrepreneurs from incubation to operation, are producing noticeable results despite the COVID-19 pandemic. In just 20 months since joining the hub, they recorded KRW 14.3 billion in cumulative sales, attracted KRW 8.1 billion in investments, and 161 new jobs.
The Seoul Metropolitan Government (SMG) opened Social Venture Hub, a space dedicated to social venture businesses, in October 2019 as the first in Korea to support social venture businesses, a new paradigm for young startups. Currently, 12 social venture businesses are operating at the hub, receiving systematic support by growth stage from office space and prototyping to technical development and commercialization through private organizations, investment and loan assistance, marketing, and tax/legal consulting.
As for their performance over the last 20 months, they recorded KRW 14.3 billion in cumulative sales, attracted KRW 8.1 billion in investments, and created 161 new jobs. This is a remarkable outcome as the number of sales and new jobs created at its initial stage was just KRW 1.4 billion and 19, respectively.
The SMG emphasizes that the fact these companies achieved such high sales record and created new jobs despite the economic and employment stagnation resulting from the COVID-19 pandemic proves the growth potentials of social venture.
In addition, the SMG pointed out that the customized support for the growth of social venture businesses and the location-wise merit of Social Venture Hub to facilitate network development served as great factors contributing to the companies’ performance. According to the SMG, the one-stop customized support of Social Venture Hub, such as providing comprehensive support from office space to technical development and commercialization, provides comprehensive support through investment and loan assistance, online and offline marketing, tax and legal consulting services according to the characteristics of each business, and promotes IR participation and marketing channel development, playing an important role in helping the growth of social venture businesses.
The SMG will continue discovering social venture businesses with large growth potentials and strive to assist their investment attraction by establishing a close network with private organizations.