(Partnership ON)

Sunjoo Cha

sjcha@asan-nanum.org
2015.04.20
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.

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

For the young

For the underprivileged

Entrepreneurship Education for

Asan Frontier Youth

Asan Frontier Fellowship
Asan Frontier Academy

Child

Individual

AER
(Asan Entrepreneurship Review)

Asan Academy

Organization

Startup Competition
Angel Investment Fund
MARU180

Partnership ON

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

Background of Business: Youth in blind-spots.

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

North
Korean
refugee
youth

Youth
single-parent

Disabled
youth

Multicultural
youth

Out-of-school
youth

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

Background of Business: Private support in Korea.

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

Major financial resource of NPOs
- Significant resource to cover governmental supports shortage
- New items for on-field needs

G
P

B
P

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
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

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

Background of Business: Asan Future Forum

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

Remind government and citizens of problems of social welfare system

Make an VP approach reflecting the current state of Korea

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: About Title

Business Title

Partnership ON

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.

Subtitle

Accelerating Program for NPOs supporting the Youth

Slogan

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

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: About Logo

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: Object and Values

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.

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.
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 : VP Approach

Category

By Asan

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

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

10

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

Expert
Group
Investor

In charge with
Innovator

VP
Partners
Expert
Group
Innovator

Role
Executing organization selected by
Partnership ON

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)

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

11

Partnership ON: VP Partners R&R

In charge with

Innovator

PA

OCE

Investor

R&R
- 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

- 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
- Intensive consulting through Capacity Assessment Tool
Vision system
Strategy for organization, human resource management, etc.
Marketing and PR
Financial accounting

- Monitoring and feedback

- Business readjustment based on VP Partners feedbacks

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

12

Partnership ON: R&R of Investor and Innovator

Innovator

Investor
Consulting and support
on organizational capacity
- Setting of Vision
- Organizational, human resource
and financial management
- Management by objectives
Nonfinancial
support

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

Financial
support

Business expense support

- All items such as direct business
expense, personnel expense, etc.

Passion and vision

- Strong faith on business
- Active participation
for capacity strengthening

Dual
Approach
- Maximization
of achievement
- Capacity
Strengthening

Achievement management
- Social Impact
- Financial Accountability
- Visible achievement
on capacity strengthening
Keep and Expand Networking
- Clarification of Partnership, R&R

Passion
Creativity
Responsibility
Partnership

Maximize Learning System

- Make the most of opportunities
of Workshops and Various
learning
Proper execution
- Accountability for compilation
and execution of budget
- Risk management / monitoring

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

Responsibility

13

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

14


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
Mission: Equal Opportunity for Everyone!
Brief History
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

What We Do
Projects

Research
Project

Open
Contents
Lab

Local
Challenge
Project

Finding

Project

Impact
Spoon

(Academic)

(Co-economy)

(Business)

(Education)

(Sharing)

Initiate
research on
the equal
opportunity
and various
social issues

Open and
share the
space with
the likeminded
people

Support
the small
local
business
and the
community

Guide the
young to
the SelfFinding
Journey

Platform for
facilitating
funding to
the
philanthropic
projects

Social Enterprises in Korea

Number of Social Enterprises
Stage 1 (Pre-certified)
Stage 2 (Certified)

Number of Workers
Under-privileged

Total

** Source : Korea Social Enterprise Promotion Agency

Social Enterprise Support Programs

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

by Government

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

Local Challenge Project

3 Key Questions
Q1. What we do ?
Select 3+ years old companies

who are creating social value for local communities

and help them to build foundation for sustainable growth.
Q2. Why?
Current support system is focused on initial stage

Local companies/communities have less chance compared to

capital area.

Q3. Goal?
Build/Identify role model and spread

Equal opportunity of growth for local companies

Local Challenge Project

Key characteristics
Capability Building Focused
1:1 Mentoring
Virtuous Cycle through
Partnership and Networking

Local Challenge Project

The First LCP program
- 7 companies

The Second LCP Program

- 8 companies

Local Challenge Project

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

10

Local Challenge Project

Case1: DongNe BangNe (All Around the Town)

11

Local Challenge Project

Case1: DongNe BangNe (All Around the Town)

12

Local Challenge Project

Case1: DongNe BangNe (All Around the Town)
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

13

Local Challenge Project

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)

14

Local Challenge Project

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

15

Local Challenge Project

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

16

Local Challenge Project

Case 3: Danuri Mom (Multicultural Mom)
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)

Thank you!

Insoo Kim
Director, The Circle Foundation
Contact. insoo.kim@thecircle.or.kr

Social Impact-Based Investment

: Strategy and Practice
April. 2015

The Happiness Foundation

3rd largest conglomerate

SK Group

Energy, Telecom, Trading

The Happiness Foundation

Supporting
Social Enterprises
Investment
Accelerating
Education

Establishment

Promoting Education
and Culture

Culinary School &

Restaurant Oneul
Acting Artists Education &
Theatre Seeya
Pro Bono for SE
2

Social Enterprise Support Initiatives

Establishment of SK SEs (16 SEs)

Innovative

SE Contest (over 800 participants)

Biz. Model

Elements of a vital
SE ecosystem
Equipped

Entreprenuer

Healthy

Impact Assessment

Capital

Impact Investment

KAIST SE MBA
(13~Present)
3

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

Process of Impact Investment

Contest

Application

(13~)

Accelerating
(14~)

Coaching

Final
Review

Awards

Biz. plan review

1:1 consulting Biz. plan
Biz. capability &
Workshop
presentation
social performance
evaluation

(10~)

Impact
Investment

Preliminary
Review

Application
Website
application
Referral

Application

IR
Biz. plan
presentation
& interview
Evaluation
on SE/SEr

Preliminary
Review
Biz. idea
presentation
& interview

Due
Diligence
Financial
valuation
Social Impact
assessment

IR Camp
Biz. plan
development

Impact
Investment
Acceleration
program

Deal
Structuring

Investment
Agreement

Negotiation
on Investment
size &
conditions

Seed
Investment

Deal
closing

Impact
Boosting
Highly-engaged
consulting
5

Social Impact-based Investment in Practice

[Step 1] Evaluation of potential investees
Evaluation Criteria
Social
Entrepreneurship

Entrepreneurs mission, passion and commitment

toward creating social impact

Score

15

Clarity of social mission

Social Impact
Potential

Sustainability of
Biz. model

Innovativeness of solution to the problems

Magnitude of social impact
Correlation between products/services and social impact
created
Growth potential and profitability
Competitive advantage of business model

35

35

Expertise in organization
Biz. Capacity

Corporate culture

15

Accessibility to resources
Total

100

Social Impact-based Investment in Practice

[Step 2] Financial Evaluation

Estimated Financial Statement

DCF
Relative Valuation

Social Impact-based Investment in Practice

[Step 3] Measurement and monetization of intended social value

Social Activities

Impact Indicator

Monetize Social Value

Social Impact-based Investment in Practice

[ Example ] Restaurant with Social Mission of Supporting
Financial Independence of the Vulnerable
Monetized Social Value
Social
Activities

Impact
Indicators

Providing
OJT at no cost

Time of OJT
Offered

Creating Jobs
for
underprivileged

Number of Jobs
Created

The Total Value from

Job Training
Proxy
-Value of the Job Training
-Value of better chances
that trainees get on
finding jobs

Increase on Income and

Benefits
for the underprivileged
Proxy
- Average income and benefits
of jobs in the industry
9

Social Impact-based Investment in Practice

[Step 4] KPIs and incentives

Social & Financial KPIs and

Milestones

Financial Incentives

10

Social Impact-based Investment in Practice

[Step 5] Non-monetary supports provided

Business Partnership
SK Groups

Building markets and Promotions

Resources &
Capabilities

Inviting Investment

Investment
Portfolio

Mentoring, Consulting

11

Impact Investment list

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

(Establishment year)

Business Area

Social Mission

Philos

Unpowered water Purifier

To Improve Accessibility
on Drinking Water

Farmer Space
(2012)

Fruit Juice Caf,

Farm Product Distribution

To Increase Disposable Income

of Vulnerable Class(Farms)

Mic Impact
(2008)

B2B & B2C Lecture,

Lecturer Management, Caf

To Ease Psychological Stress Of Youth

Travelers Map
(2009)

Travel Agency

To contribute to Local Economy,

And Create Local Jobs

Law and Company

(2012)

Online Legal Issue

Consulting Platform

Solve the High Cost Burden

Problems on Legal Issue Consulting

Locomotive Labs
(2012)

Mobile Education Apps

(specialized for kids with special needs)

To Improve Accessibility on
Education for Kids with Special Needs

Org.
(2009)

Organic Apparels,
Online Production Platform for Apparels

To Improve Labor Environment

And Solve Apparel Pollution Issues

Oyori Asia
(2012)

Restaurant,
Restaurant consulting

To Create jobs and Improve Accessibility

on job Trainings for Vulnerable Groups

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 12

of Junior Artists

Approach from Different Sectors

Cooperation and solidarity among and within sectors
Social Enterprise Promotion Act (2007)

Government

Supporting
Agency

Social
Enterprise

Social Economy Act (2015E)

Impact
Investing
Impact investment
reflecting social
value

Administrative
supporting
Accelerating

Citizenship
Culture & mind
Preferential Purchasing

13

Capital Market Expansion for Social Economy

Evaluation of
social value

Evaluation method
sophisticated

Reflect social value upon

investment decision

Co-investment

Share methodology
Recommend investees

Investment
Vehicle

Build up a fund jointly

Cases cumulated, and
venture capitals join
14

Q&A
15

Thank You
16

Panel Discussion
Q&A

Thank you