SIB projects are being carried out to increase efficiency for local governments, to remove blind spots in local administration and to promote social investment. (image: KobizMedia/ Korea Bizwire)
SEOUL, Dec. 24 (Korea Bizwire) — Social Impact Bonds (SIB), where private sector ventures are compensated for conducting public projects and producing a certain result, are being launched in South Korea.
Local governments will evaluate the contribution of the private sector and offer compensation.
SIB projects are being carried out to increase efficiency for local governments, to remove blind spots in local administration and to promote social investment.
SIB initiatives in South Korea have yet to be fully implemented. In Seoul, a business proposal was selected to help 500 job seekers to find jobs and to start their own business.
In Gyeonggi Province, a plan to prevent women from breaking careers was selected. In South Jeolla province, a startup business proposal for the food industry was selected.
The government plans to draw up a standard bill next year and distribute it to encourage local governments to proceed with selected plans.
The government further hopes SIBs will solve complicated social problems with creative approaches.
H. M. Kang (hmkang@koreabizwire.com)
