An international symposium held in Seoul highlighted social and solidarity finance as a potential solution to regional economic decline, a pressing issue as South Korea and other nations grapple with population loss and the threat of local extinction.
The Korean Federation of Community Credit Cooperatives (KFCC) announced its co-hosting of the International Symposium on Social and Solidarity Finance with the Ministry of the Interior and Safety on Tuesday in Yongsan-gu, Seoul.
The event drew approximately 300 attendees, including officials from both organizations, domestic and international industry representatives, and delegates from global bodies like the European Association of Co-operative Banks (EACB) and the Global Alliance for Banking on Values (GABV).
The symposium centered on the crucial role of social and solidarity finance in bolstering the social and solidarity economy and charting its future course. KFCC emphasized that this model transcends mere profit generation, directing funds toward social economy entities such as cooperatives and village enterprises to foster community development. With the increasing challenges of population decline and regional hollowing-out, this approach is gaining traction as a viable alternative for revitalizing local economies by prioritizing social value.
In his opening remarks, Interior Minister Yun Ho-jung stated, “Social and solidarity economy initiatives require not only financial support but also a robust institutional framework to operate effectively.” He further emphasized, “Korea should strive to establish a model that serves as a core infrastructure for the social and solidarity economy, enabling funds to circulate within regions and communities and ensuring a consistent supply where needed.”
The first session featured presentations of international case studies from France, Spain, and the United States. EACB CEO Nina Schindler cited Credit Mutuel in France as an example of community-based finance effectively supporting local economies through investment and advisory services for regional businesses.
The Spanish Union of Credit Cooperatives underscored how enhanced collaboration among cooperatives has broadened financial support and improved access to finance in Spain. Meanwhile, the Global Alliance for Banking on Values highlighted Southern Bancorp in the US as a successful model for regional revitalization through financial education, local investment, and strategic partnerships.
A subsequent panel discussion focused on the potential for adopting international models in Korea and developing a unique Korean-style social and solidarity finance system. Officials also outlined policy and institutional plans, encompassing related legislation, governance measures, and KFCC’s Vision 2030 plan aimed at expanding support for local businesses and communities.
KFCC Chairman Kim In expressed hope that the event would “provide fresh momentum for struggling local communities,” and affirmed KFCC’s commitment to “continue to do its utmost to help build a society where people can prosper together, standing by local communities and ordinary citizens.”
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