Impact investment refers to investments made with the intention of generating positive, sustainable social and environmental outcomes alongside financial returns. According to global trends, the impact investment market was valued at approximately USD 2.23 trillion as of 2020 and is expected to continue growing. In South Korea, the domestic impact investment sector remains in its early stages, with a market size of around KRW 700 billion as of 2021, yet it is experiencing rapid growth. While impact investments have traditionally been categorized into environmental and social domains, recent trends highlight emerging areas such as climate technology (climate tech) and taxonomy-based investments.
This study explores policy measures to promote impact investment in Korea, drawing on insights from global trends. In particular, it proposes strategies for revitalizing impact investment at the Gyeonggi-do provincial level. First, it is essential to attract diverse private capital sources, including endowments from foundations. Second, the introduction of policy finance systems capable of providing long-term patient capital is necessary. Third, expanding the exit market such as by activating the secondary fund market will be crucial. Fourth, leveraging mechanisms like Social Impact Bonds (SIBs) and considering integration with the social and solidarity economy can further broaden the impact investment ecosystem.