avpn country session 2 - korea session (presentation)

This information was prepared by Asan Nanum Foundation for discussion purposes only; it is not to be relied on by any 3rd party without Asan Nanum Foundation's prior written consent

(Partnership ON)

Sunjoo Cha

[email protected]

2015.04.20

2 This information was prepared by Asan Nanum Foundation for discussion purposes only; it is not to be relied on by any 3rd party without Asan Nanum Foundation's prior written consent

About the Asan Nanum Foundation

Asan, the late Mr. Chung Ju-yung

- As honorary president of Hyundai Groups, invested actively on fields

leading the future of Korea such as shipbuilding, car, steel and heavy

industries.

- Represented challenge spirit No Failures but Trials.

- In 1977, Established the Asan Social Welfare Foundation

with the vision to build prosperous communities across Korea.

- In 2011, the Asan Nanum Foundation

was established from Hyundai Heavy

Industries, affiliated companies and

family members to commemorate

the tenth anniversary of the passing of Asan.


Entrepreneurship Education for Child

AER (Asan Entrepreneurship Review)

Asan Academy

Startup Competition

Angel Investment Fund

MARU180

For the young For the underprivileged

Individual

Organization

Asan Frontier Youth

Asan Frontier Fellowship

Asan Frontier Academy

Partnership ON

About the Asan Nanum Foundation


Background of Business: Youth in blind-spots.

North

Korean

refugee

youth

Who is Youth (Our Target)? : 9 to 24-year old by Framework Act on Juveniles

Not individual issues but social issues. Limited support by governments. More limited supports for the youth having multiple issues.

Juvenile

delinquent

Youth

single-parent Multicultural

youth

Disabled

youth

Out-of-school

youth


Background of Business: Private support in Korea.

Major financial resource of NPOs

- Significant resource to cover governmental supports shortage - New items for on-field needs

Empowerment enhancement of NPOs and staffs - Important factor for increase of organizational

credibility and satisfaction

- Enhancement of professionalism of NPO and workers

through competition

- Growth opportunity for program planning and implementation

Private support method for blind-spots of Korean welfare system: Contest

Fragmentary support - Almost supports for 1 year

- Many supports on program budget and in-kind gifts

(No support on capacity building)

- Limit on operational expenses

Limited social impact - Performance measurement based on stereotyped report and

output-oriented

- Impossible to seek far-reaching power and modeling

Multilateral

support

needed to

strengthen

the Capacity

of NPOs and

staffs,

beyond

Financing

G

P

B

P


Background of Business: Asan Future Forum

Remind government and citizens of problems of social welfare system

Make an VP approach reflecting the current state of Korea

Theme Seeking private-level solution for growth and self-reliance

of the youth in blind-spots of social welfare

5 Blind-spots:

Out-of-home youth, Juvenile delinquents, North Korean

refugee youth, Youth single-parent and Disabled youth

Partner The Better Future, public interest section of Chosun media

Participants Expert group with 36 academic and field professionals

- 25 round-table talks during 6 months & 1 conference


Partnership ON: About Title

Business Title Partnership ON

Subtitle Accelerating Program for NPOs supporting the Youth

Slogan Your world-changing serene challenge, ASAN is with you.

Partnership: meaning the business way - Strong partner in every moment of success and hardship

ON: meaning the business value - Number 100 and all, every in Korean - warm in Chinese character () - Switch ON, Keep ON, Move ON

-> The Asan Nanum Foundation hopes to make a better world for youth and NPOs

by input of foundations 100% capacity.


Partnership ON: About Logo


Partnership ON: Object and Values

Discover NPOs with Innovative Ideas and Approaches

and Support Growth and Self-reliance of NPOs and Youth

Inspire NPOs to fulfill responsible sharing as well as pursue dreams, passion, challenge and creation based on Asan, Mr. Chung Ju-yungs challenge spirit.

Y Your Creative Insights

O Omnidirectional Support and Network

U Unexhausted Passion and Eagerness

T Transform the Community and the Nation

H Happiness of Participants

The Asan Nanum Foundation helps partner NPOs change community and

government with their unsparing passion and efforts through its holistic support

on their creative insights, which results all participants to feel happy.


Partnership ON : VP Approach

High Engagement Partnership as groups sharing a destiny

- Compose the committee VP Partners

Multi-year Support 3-year support

(On seeking other support ways for business after 3 years)

Tailored Financing Invest by Grants

Organizational

Capacity-building

Provide Intensive Consulting by result of ACT4VP

( ACT4VP: Asan Capacity assessment Tool for VP)

Non-financial

Support

Provide services such as Strategic Planning, Marketing, PR,

Financial Accounting, etc.

Performance

Measurement Ask for Social Impact & Financial Accountability

Category By Asan


Partnership ON: Supports

Financial

Support

- Max. 200 million KRW(177,000 USD), max. 3 years

- No limit on rate of items such as business expenses,

personnel expenses, etc.

Non-financial

Support

- VP Partners composed by executing organization (Innovator), Foundation(Investor), PA(Program Advisor)

and OCE(Organizational Capacity Expert)

- Co-work for business success and organizational

capacity growth

Investor

Expert

Group

Innovator

VP

Partners

In charge with Role

Innovator Executing organization selected by

Partnership ON

Expert

Group

PA Professors in the field of youth or social work

and executives of relative organization

OCE

Field Professionals Strategy, Organizational management, Marketing, PR,

Financial Accounting, etc.

Investor Asan Nanum Foundation(ANF)


Partnership ON: VP Partners R&R

In charge with R&R

Innovator

- Business implementation and management as investment applicant

- Process recording and report, and achievement measurement

- Maximization of application of Learning System

VP Partners meeting once a month

VP Partners workshop 3 times a year

Asan Frontier Academy participation of leaders (middle manager+)

Global training participation when supported for 2 consecutive years

PA

- Advice by experts

1 advisor for 2 organizations (in-depth consulting)

- Network building

relative organizations in community

business item related organizations - Building and application of Learning System

OCE

- Intensive consulting through Capacity Assessment Tool

Vision system

Strategy for organization, human resource management, etc.

Marketing and PR

Financial accounting

Investor - Monitoring and feedback

- Business readjustment based on VP Partners feedbacks


Consulting and support on organizational capacity

- Setting of Vision

- Organizational, human resource

and financial management

- Management by objectives

Advice by expert on youth - 1 advisor for 2 organizations

(In-depth Consulting)

Support Networking - Organizations in community

- Item related organizations

Build Learning System - Workshop: Mirror effect

- Monthly mini workshop

: Strengthen Communication

Passion and vision - Strong faith on business

- Active participation

for capacity strengthening

Achievement management - Social Impact

- Financial Accountability

- Visible achievement

on capacity strengthening

Keep and Expand Networking - Clarification of Partnership, R&R

Maximize Learning System - Make the most of opportunities

of Workshops and Various

learning

Business expense support - All items such as direct business

expense, personnel expense, etc.

Non-

financial

support

Financial

support

Proper execution - Accountability for compilation

and execution of budget

- Risk management / monitoring

Passion

Creativity

Responsibility

Partnership

Responsibility

Investor Innovator

Partnership ON: R&R of Investor and Innovator

Dual

Approach

- Maximization

of achievement

- Capacity

Strengthening


Partnership ON: Challenges

VP approach based support which is NEW in the NPO field of Korea

- VP terms, unfamiliar in the NPO field but intentionally used

(ex: Accelerating, VP)

- Participants named as Innovator and Investor (Application form also named as Investment application form)

- Interpretation and Application of VP as Korean situation

What is Core Capacity for NPOs ? - Assessment Tool development for support on organizational capacity strengthening

(ACT4VP: 4 areas of Identity, Strategy, Organizational operation skill, Resource)

- Training for assessment tool understanding, workshop for assessment, etc.

- Intensive Consulting by experts for making up for or strengthening the weak capacity

This information was prepared by Asan Nanum Foundation for discussion purposes only; it is not to be relied on by any 3rd party without Asan Nanum Foundation's prior written consent

Local Challenge Project

by

Insoo KIM

from

The Circle Foundation (S. Korea)

2015.04.20

Who We Are

Dr. Ahn donated half of his AhnLab shares (about U$100million) and founded Ahn Foundation in 2012.

Changed name to The Circle Foundation in 2013

The first three projects launched in 2013

Brief History

2

Mission: Equal Opportunity for Everyone!

What We Do

Projects

Finding Project


Open Contents Lab

Impact Spoon

Research Project

(Education) Guide the young to the Self-Finding Journey

(Business) Support the small local business and the community

(Co-economy) Open and share the space with the like-minded people

(Sharing) Platform for facilitating funding to the philanthropic projects

(Academic) Initiate research on the equal opportunity and various social issues

3

Social Enterprises in Korea

4

** Source : Korea Social Enterprise Promotion Agency

Number of Social Enterprises

Stage 1 (Pre-certified)

Stage 2 (Certified)

Number of Workers

Under-privileged

Total

Social Enterprise Support Programs by Government

5

Labor Cost Subsidy : - For 2~3 years - 20~90% of wages (limit : $2,000/montherson)

Business Development Support : - 90% of R&D, Marketing, Branding, PR, etc cost - Upto 5 years - Upto $100,000

Social Insurance Subsidy : - For 4 years - Upto $100/month/person

Others : - Consulting (Management ,HR, Finance, Labor, etc.) : 80~90% of cost - Preferred procurement by government - Sales channel development support - Tax break

6

Q1. What we do ?

Q2. Why?

Q3. Goal?

Select 3+ years old companies

who are creating social value for local communities

and help them to build foundation for sustainable growth.

Current support system is focused on initial stage

Local companies/communities have less chance compared to

capital area.

Build/Identify role model and spread

Equal opportunity of growth for local companies

Local Challenge Project 3 Key Questions


Capability Building Focused

1:1 Mentoring

Virtuous Cycle through Partnership and Networking

Key characteristics

7

The First LCP program - 7 companies

The Second LCP Program - 8 companies


8

Case1: DongNe BangNe (All Around the Town)


Social Mission: - Revitalize the old downtown in

Chuncheon

Background and Initiative: - Chuncheon is a small town in

Gangwon province (0.3 mil residence)

- Tourist concentrated in a few areas in the suburbs Disproportional income, Downtown losing steam and slackening

- Create attractive tour programs Revitalize the downtown community

9



10



11



with LCP - Transformed the discarded shabby inn

in the old downtown to the vibrant and young guest house

- Collaborate with local shops and restaurants for co-marketing

- Create tour packages suitable for the young people

Results - Monthly 300 visits to the guest house - Four tour packages developed, 20

times media coverage in 2014

12

Case 2: SunSan Happy Working Place


Social Mission - Provide stable job opportunities to

the disabled living in deprived area Background - Nearby the industrial zone where used

gloves and aprons from the factory being thrown away

- The disabled are good at meticulous and repetitive job

- Niche market for the laundry (win-win biz model both to the factory owner and the laundry service provider)

13

Case 2: SunSan Happy Working Place


Business Model - Provide one-stop laundry service to

the factory in the industrial complex Biz expansion More job opportunities to the disabled

Results with LCP - Renovate the old laundry facilities and

introduce standardized laundry training program Efficiency up

- Strengthen marketing capability

- 1:1 mentoring CEO becomes business-minded

14

Case 3: Danuri Mom (Multicultural Mom)


Social Mission - Help migrant women to settle down

smoothly in Korea Background - Multicultural family generally being in

the low income bracket in Korea

- Lack of quality profession and proper job training to the migrant women

- Experience baby delivery in the early age, emotionally detached

15

Business Model - Provide tailored postnatal care to the

migrant women

- Match moms to the experienced helper having the same nationality

- Professional training of postnatal care to the migrant women (certification)

Results with LCP - Service satisfaction assessment, quality

control, professional training Service quality upgrade

- Scale up the business from Suwon to Seoul (300% jump in sales in 2014)

Case 3: Danuri Mom (Multicultural Mom)


16

Thank you!

Insoo Kim Director, The Circle Foundation Contact. [email protected]

Social Impact-Based Investment

: Strategy and Practice

April. 2015

2

Promoting Education

and Culture

Supporting

Social Enterprises

Investment

Accelerating

Education

Establishment

Culinary School & Restaurant Oneul

Acting Artists Education & Theatre Seeya

Pro Bono for SE

The Happiness Foundation

The Happiness Foundation

3rd largest conglomerate

Energy, Telecom, Trading SK Group

KAIST SE MBA (13~Present)

Innovative

Biz. Model

Equipped

Entrepre-

nuer

Elements of a vital

SE ecosystem

Healthy

Capital

Impact Assessment

Impact Investment

Social Enterprise Support Initiatives

Establishment of SK SEs (16 SEs)

SE Contest (over 800 participants)

3

4

Impact Investing as a Driver for SE Ecosystem

Financial support on each stage of growth curve is

essential in growing successful SEs

6 months

after

start up

6m. ~ 3 yrs 3 ~ 7 yrs

Preliminary

Review Coaching

Final

Review Awards

Contest (10~)

Impact

Invest-

ment (13~)

Biz. plan review Biz. capability & social performance

evaluation

1:1 consulting Workshop

Negotiation on Investment

size &

conditions

Applica-

tion IR

Due

Diligence

Deal

Structuring

Investment

Agreement

Biz. plan presentation

& interview

Evaluation on SE/SEr

Financial valuation

Social Impact assessment

Impact Investment

Acceleration program

Biz. plan presentation

Deal closing

Accelerating (14~)

IR Camp

Biz. plan development

Seed

Investment

Impact

Boosting

Highly-engaged consulting

Applica-

tion

Preliminary

Review

Process of Impact Investment

Biz. idea presentation

& interview 5

Applica-

tion

Website application

Referral

[Step 1] Evaluation of potential investees

6

Social Impact-based Investment in Practice

Evaluation Criteria Score

Social

Entrepreneurship

Entrepreneurs mission, passion and commitment toward creating social impact

15

Social Impact

Potential

Clarity of social mission

35

Innovativeness of solution to the problems

Magnitude of social impact

Correlation between products/services and social impact

created

Sustainability of

Biz. model

Growth potential and profitability 35

Competitive advantage of business model

Biz. Capacity

Expertise in organization

15 Corporate culture

Accessibility to resources

Total 100

7


[Step 2] Financial Evaluation

DCF

Relative Valuation

Estimated Financial Statement

[Step 3] Measurement and monetization of intended social value

8


Impact Indicator

Monetize Social Value

Social Activities

Increase on Income and

Benefits

for the underprivileged

The Total Value from

Job Training

Monetized Social Value

Number of Jobs

Created

Time of OJT

Offered

Impact

Indicators

9

Creating Jobs

for

underprivileged

Providing

OJT at no cost

Social

Activities

Proxy -Value of the Job Training

-Value of better chances

that trainees get on

finding jobs


Proxy - Average income and benefits

of jobs in the industry

[ Example ] Restaurant with Social Mission of Supporting

Financial Independence of the Vulnerable

10

[Step 4] KPIs and incentives


Financial Incentives

Social & Financial KPIs and

Milestones

11


[Step 5] Non-monetary supports provided

Business Partnership

Building markets and Promotions

Inviting Investment

SK Groups

Resources &

Capabilities

Mentoring, Consulting

Investment

Portfolio

Impact Investment list

12

Enterprise (Establishment year)

Business Area Social Mission

1 Philos Unpowered water Purifier To Improve Accessibility

on Drinking Water

2 Farmer Space

(2012)

Fruit Juice Caf, Farm Product Distribution

To Increase Disposable Income of Vulnerable Class(Farms)

3 Mic Impact

(2008)

B2B & B2C Lecture, Lecturer Management, Caf

To Ease Psychological Stress Of Youth

4 Travelers Map

(2009) Travel Agency

To contribute to Local Economy, And Create Local Jobs

5 Law and Company

(2012)

Online Legal Issue Consulting Platform

Solve the High Cost Burden Problems on Legal Issue Consulting

6 Locomotive Labs

(2012)

Mobile Education Apps (specialized for kids with special needs)

To Improve Accessibility on Education for Kids with Special Needs

7 Org.

(2009)

Organic Apparels, Online Production Platform for Apparels

To Improve Labor Environment And Solve Apparel Pollution Issues

8 Oyori Asia

(2012)

Restaurant, Restaurant consulting

To Create jobs and Improve Accessibility on job Trainings for Vulnerable Groups

9 Dongbu Care

(2011)

Silver Care Service (Alzheimer's, Long-term Care)

To Improve Quality of Social Services and Create jobs for Seniors

10 Weenu

(2007) Art Events & Online Contents Production

To Increase Disposable Income of Junior Artists

$1.8M for 10 SEs, ranging from $45K to $450K

13

Approach from Different Sectors

Government

Supporting

Agency

Social

Enterprise

Cooperation and solidarity among and within sectors

Administrative supporting

Accelerating

Culture & mind

Preferential Purchasing

Social Enterprise Promotion Act (2007)

Social Economy Act (2015E)

Impact investment reflecting social

value

Impact

Investing

Citizenship

14

Capital Market Expansion for Social Economy

Share methodology

Recommend investees Co-investment

Build up a fund jointly

Cases cumulated, and venture capitals join

Investment

Vehicle

Evaluation method sophisticated

Reflect social value upon investment decision

Evaluation of

social value

15

Q&A

16

Thank You

Panel Discussion

Q&A

Thank you

avpn country session 2 - korea session (presentation)

Documents

asan nanum foundation

passing of asan

asan social welfare

school youth

discussion purposes

limited supports

north korean refugee

social issues