SK Holdings Chairman Chey Tae-won gained attention from global business leaders over the weekend as he shared his visions and strategies to create social enterprises at the World Economic Forum in Davos, Switzerland, the company said Sunday.
According to SK, Chey suggested "impact investing" as one way to raise funds in social enterprises.
He referred to investments made in companies, organizations and funds with the intention to generate measurable social and environmental impact alongside a financial return.
"It is important to set up platforms where people can invest their money in small- and mid-sized social enterprises. We may support social enterprises further by establishing capital markets and platforms for them," Chey was quoted as saying by SK at the forum.
Chey introduced an idea of "social progress credits" given to investors who invest in social enterprises. The government can boost the market by providing tax benefits for companies and individuals who have those credits, the SK chairman said.
The 52-year-old said such movement could create "social equity markets," which will play a role in drawing funds to social enterprises quicker and more easily.
About 90 executives took part in the session chaired by Gillian Tett, U.S. managing editor for The Financial Times, SK said.
"It is rare case that a local businessman takes the initiative at a session of the Davos Forum. It means that the host recognized Chey, who has made efforts to find solutions to social problems through social enterprises," said an SK spokesman.
The World Economic Forum, also known as the Davos Forum, is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas, according to its website.