An international symposium in Seoul cast solidarity finance as a possible answer to regional economic decline as South Korea and other countries grapple with population loss and the risk of local extinction.
The Korean Federation of Community Credit Cooperatives said it co-hosted the International Symposium on Social and Solidarity Finance with the Ministry of the Interior and Safety on Tuesday in Yongsan-gu, Seoul.
About 300 people attended, including officials from the two organizations, domestic and overseas industry participants, and representatives from international groups such as the European Association of Co-operative Banks and the Global Alliance for Banking on Values.
The event focused on the role of social and solidarity finance in supporting the social and solidarity economy and its future direction. KFCC said the model goes beyond profit generation by channeling funds to social economy entities such as cooperatives and village enterprises to support community development. As population decline and regional hollowing-out deepen, it is increasingly seen as an alternative way to reviving local economies by putting social value first.
Opening the event, Interior Minister Yun Ho-jung said, “Social and solidarity economy initiatives need financial backing as well as an institutional foundation to function in practice.” He added, “Korea should aim for a model that becomes core infrastructure for the social and solidarity economy, allowing funds to circulate within regions and communities and to be supplied steadily where they are needed.”
In the first session, speakers presented overseas cases from France, Spain and the US. EACB CEO Nina Schindler cited France’s Credit Mutuel as an example of community-based finance supporting local economies through investment and advisory services for regional businesses.
The Spanish Union of Credit Cooperatives highlighted how stronger collaborations between coopareratives has expanded financial support and improved access to finance in Spain, while the Global Alliance for Banking on Values pointed to Southern Bancorp in the US as a model for regional revival through financial education, local investment and partnerships.
A panel discussion followed, highlighting the potential adoption of overseas models in Korea and the development of a Korean-style social and solidarity finance system. Officials also outlined policy and institutional plans, including related legislation, governance measures and KFCC’s Vision 2030 plan to expand support for local businesses and communities.
KFCC Chairman Kim In said, “We hope this event today serves to provide fresh momentum for struggling local communities,” and added that KFCC would continue to do its utmost to help build a society where people can prosper together, standing by local communities and ordinary citizens.
jwc@heraldcorp.com