HF Takes the First Step in the Busan Embracement Fund for Social Economic Development

- HF raises a joint fund with other local public agencies for the stimulation of the social economy in Busan

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) announced on March 7, 2018, that it has signed a memorandum of understanding (MOU) with seven other public agencies based in Busan* and the Research Institute for Social Enterprises. The agreement is entitled 'MOU for the Management of the Busan Embracement Fund for Social Economic Development Raised by Public Corporations.'  
    * Korea Technology Finance Corporation, Korea Housing & Urban Guarantee Corporation, Korea Southern Power Corporation, Korea Securities Depository, Korea Asset Management Corporation, Busan Port Authority, and Busan Metropolitan Corporation

Under the MOU, public corporations based in the Busan metropolitan area are going to raise KRW 750 million in their joint fund this year and use the fund to actively support the incubation, startup, and growth of social enterprises in the area. 

For its first support project, HF will ▲ make impact investments in social enterprises*, ▲ offer management consulting services in the areas of human resources, accounting, and legal affairs, and ▲ run a talent development program to nurture and develop social entrepreneurs.
    * A method of investment made in businesses or companies that can have  positive impacts in society regardless of profits

In the impact investment program, one of the fund's key programs, HF will select beneficiary social enterprises through an expert screening process and provide them with financial assistance along their growth cycle. More specifically,  crowdfunding investment matching with social enterprises will be offered at the pilot project phase, financial grants at the start-up phase, and no-interest loans at the scale-up phase. 

An HF official said, "The Busan Embracement Fund (BEF*) Project is a joint fund raised by public corporations to support the social economy. HF will make its best efforts to leverage its key expertise in financing to promote social economic development in the local community."
    * Busan Embracement Fund for Social Economic Development