2012 Annual Report The Happiness Foundation

2012Annual ReportThe Happiness Foundation

Sharing Happiness SustainablyThe 2012 Annual Report of the Happiness Foundation

1-102 Dongbinggo-dong, Yongsan-gu, Seoul 140-809, K

orea / tel 02. 333. 3963 / fax 02. 333. 3961 / ww

w.skhappiness.org

2012Annual ReportThe HappinessFoundation

Letter 2

About Us 4

The Highlights of 2012 6

Social Enterprise 8

Education & Culture 20

Epilogue 32

This is a report published by the Happiness Foundation to help interested parties learn about what has been achieved through our programs in 2012. We include the remarkable results of the various programs promoted in 2012, as well as detailing the efforts expended and the significance of our achievements. This is an evidence and fact-based report that has been carefully prepared and vetted by the staff involved and management.

The Happiness Foundation

We know the value of creating happiness and growing together

Letter

The Happiness Foundation is innovating the way of sharing with the vision of becominga dedicated social contribution foundation that develops and spreads a novel, yet sustainable business model. Together with SK, we aim to not only discover and further a sustainable model of sharing, but also establish a sustainable eco-system of sharing to ensure that our model for sharing is successfully diffused throughout society.

Through such efforts, we aim to pursue happiness based on achieving sustainable growth and development alongside all runs of society and in turn create a better future for everyone. Rather than limiting the way of contributing to simply donating, we provide people with the opportunity to strive to create happiness. True happiness can only come from stepping up to play an active role in society and keep challenging oneself. Such efforts are sure to change not only the person, but also society as a whole and thus bring about greater social happiness. Constant efforts and changes will help build the foundation for sustainable growth and inspire the trust and hope in our fellow man that today is a better than yesterday and tomorrow will be better than today.

As part of this vision, the Happiness Foundation undertakes social contribution activities through its social enterprise programs and education and culture programs. Based on the belief that a fundamental solution to social problems is to first build the conditions and opportunities for self-sufficiency, we are working to bring a new paradigm to social contribution through social enterprises that create social value and new jobs. Also, it is our philosophy that education is the key to fostering talents and helping them stand on their own feet, for it helps them build and develop the skills and knowledge needed in their jobs.In this respect, we propose a new social contribution model that provides the youth with an education best suited for them as well as the opportunity to help others.

The Happiness Foundation will continue to make every effort to create happiness for more of our neighbors through sustainable innovation and true sharing. We expect our efforts will blossom a happiness that grows in every possible place, both at home and aboard.

The Director of the Happiness Foundation Chey, Kee-Won

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The Happiness FoundationIntroduction to the Happiness Foundation

The Happiness Foundation pursues happiness not only for those who benefit from social contribution, but for everyone involved in sharing. We are striving to make everyone happy today, tomorrow and beyond.

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The Happiness Foundation seeks a way to create and share greater happiness with more people. In order to address a range of social issues, we have developed a sustainable model for sharing that engages the government and civil groups, based on a corporate mechanism. Indeed, we are fully committed to establishing an eco-system of sharing to ensure that our model for sharing is diffused throughout society. While striving to create a new way of sharing, we nurture and help young talents full of passion realize their dreams.

“The Happiness Foundation continues to challenge itself and bring about innovation in creative and sustainable ways of sharing.”

The Happiness Foundation’s CI is designed using ‘the division sign (÷)’, signifying that it createsand shares happiness with society. The circle that thickens as it goes up to the right embraces our philosophy: Happiness adds and multiplies as we divide it with others.

About Us


The Happiness FoundationIntroduction to the Happiness Foundation

The Happiness Foundation pursues happiness not only for those who benefit from social contribution, but for everyone involved in sharing. We are striving to make everyone happy today, tomorrow and beyond.

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Members of the Happiness Foundation studying and promoting a novel, yet sustainable social contribution model

Students at ‘SK Happy Car School’ who will grow to become valued members of society and serve as an example for others in industry through systematic education

The front view of the Happiness Foundation’s new office building

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About Us

People

Network Building a communications and cooperation network for socialenterprises

Business

Model

Social Partners Model (9)

Happy After School (Seoul, Busan, Daegu, Ulsan), Happy Library, Happy New Life, Daegu Happy Future Foundation, Happy Traditional Village, Happy Dosirak

Establishing and supporting theestablishment of SK socialenterprises

Discovering and/or supporting social enterprise models

Fostering social entrepreneurs

The Website Se-sang, Se-sang-ae-na Networking Day providing criteria to evaluate the value of social enterprises, Support and cooperation

SK Biz R&C Model (6)

Happy ICT, Happy Farm, Happy Green Recycling, Happy Web & Media, Happy Narae Co., Happy F&C Foundation

Se-sang Social Enterprise Contest, Appropriate Technology Social Enterprise Festival

Social Enterprise Programs

Contribute to creating a sustainable eco-system of social enterprises

Education Vocational education program SK Happy School (Cooking, Musical, Car)

Culture Culinary culture O’neul, the Korean Cuisine

College student volunteer group Sunny

Performing Arts SEEYA the Project Box

Education and Culture Programs

Nurture talents for the future through education and sharing

2011

• Announced new corporate identity• Held ‘Se-sang Social Enterprise

Contest’• Held ‘Appropriate Technology

Social Enterprise Festival’• Launched ‘Se-sang Social Enterprise

School’• Established ‘Happy After School

Foundation’ in Daegu and Ulsan• Established ‘Happy Library

Foundation’ and ‘Happy New Life Foundation’

• Established ‘Happy ICT Foundation’, ‘Happy Farm Foundation’, ‘Happy Green Recycling Foundation’, and ‘Happy Web & Media Foundation’

• Screened musical ‘Zorro’• Awarded Presidential Prize by the Ministry of Justice• ‘Happy After School Foundation’ in

Seoul and Busan approved as a social enterprise by the Ministry

of Employment and Labor

2010

• Established ‘Happy After School Foundation’ in Seoul

• Established ‘Happy After School Foundation’ in Busan

• Launched college student volunteer group ‘SK Sunny’ in China

• Held ‘Se-sang Social Enterprise Contest’

2009

• Chey, Kee-Won appointed as the 3rd Chairman

• Launched youth self-support program ‘SK Happy Musical School’ (formerly SK Happy Music School)

• Held SK employee-based micro-donation campaign ‘SK Happiness Sharing Night’

• Established Social Enterprise Office• Launched website ‘Se-sang’ (www.

se-sang.com) for social enterprises• Launched youth self-support

program ‘SK Happy Car School’• Launched ‘Start-up Academy for

Social Entrepreneurs’• ‘Sunny’ awarded Presidential Prize

in the Korean Human Awards (held by the Ministry of Health & Welfare and KBS)

2008

• Kim, Shin-Bae appointed as the 2nd Chairman

• Launched youth self-support program ‘SK Happy Cooking School’

• ‘Happy Dosirak’ awarded by the Minister of Health and Welfare• SK awarded Prime Minister’s Prize

for its contribution to fostering social enterprises by the Ministry of Labor

2007

• Took over and operated college student volunteer group ‘SK Sunny’ from SK Telecom

• ‘Happy Dosirak’ awarded for Best Practice in Public-Private Cooperation by the Ministry of Government Administration and Home Affairs

2006

• Established the 1st ‘Happy Dosirak’ regional center in Jung-gu, Seoul

• Held the inaugural meeting of the Happiness Foundation;

Cho, Jeong-Nam appointed as the 1st Chairman

• ‘The Happiness Foundation’ authorized as a non-profit organization by the Ministry of Labor

2005

• Signed MOU to initiate ‘Happy Dosirak’ project to provide meal boxes to the underprivileged

(SK telecom & Korea Foundation for Working Together)

The Happiness Foundation’s programs

The Happiness Foundation’s history

Se-sang Social Enterprise School, Social Entrepreneurship MBA


5 Ensuring leadership in the eco-system of social enterprises

- Happy After School won the grand prize at ‘After-School Contents Fair’ hosted by the Ministry of Education

- Happy After School in Daegu accredited as a social enterprise- The social cooperative union Happy Dosirak approved as the 1st social cooperative union by the Ministry of Strategy and Finance

- SK’s social enterprise programs ranked 1st in awareness survey with social contribution experts

* Source: Chosun Ilbo, Better Future on May 8, 2012

8 Creates a progressive performing arts

SEEYA the Project Box has opened, spurring positive growth in the musical industry. It creates a progressive performing arts by developing original Korean musicals and supporting musical artists and providing audience education programs. Also, it serves as an education venue to reinforce SK Happy Musical School’s curriculum.

9 Positioning itself as a center of fostering creative talents

Sunny, a college student volunteer group, has received ‘the Minister’s Award’ and ‘the Public Interest Award’ in Korea and China, respectively. As the country’s largest corporate-run college student volunteer group, Sunny plans and operates various volunteer programs and, in doing so, presents a new model for volunteering and fosters future talents.

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6 A professional youth self-support program

SK Happy School is officially certified as a commissioned alternative school by Seoul Metropolitan Office of Education. This represents that SK Happy School built up the Happiness Foundation to help teenagers stand on their own feet. High school seniors who completed the course will receive a high school diploma.

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7 A new way to experience Korean foods

O’neul, the Korean Cuisine opened today with the aim of making contributions to the culinary culture and society through food service. The restaurant delivers a role for the globalization of Korean cuisine, by adding modern touch to the traditional Korean cuisine. Also, it will provide SK Happy Cooking School students the chance to gain hands-on experience.

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The Highlights of 2012

1 Reinforced expertise and efficiency through organizational reform

The Happiness Foundation integrated its social enterprise, education and culture arms and opened a new office in Dongbinggo-dong, Yongsan-gu, Seoul, Korea. The new office building is set to become the cornerstone of the Happiness Foundation’s future, strengthening its expertise and efficiency for the discovering and diffusion of an innovative social contribution model.

3 Creating and spreading various social values

The Happiness Foundation opened ‘Happy Future Foundation’ in Daegu, which provides carrier education for teenagers; ‘Happy F&C Foundation’ to promote the globalization of Korean cuisine while also supporting teenagers’ self-reliance; ‘Happy Traditional Village’ which provides a chance to experience many different traditional cultures; and a social cooperative union for ‘Happy Dosirak’. Through all such initiatives, the Foundation creates and spreads a range of social value.

The Highlights of 2012The Happiness Foundation’s Headline News in 2012

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4 Fostering talents with high potential

SK, together with KAIST College of Business, has opened the world’s first MBA program for social entrepreneurs. Lectures are given by a group of excellent professors and training will enable students to grow the ability to start up a social enterprise of their own, based on a strong belief in social innovation.

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2 A new role model for social enterprises that aim at win-win growth

SK’s subsidiary MRO Korea turned into the country’s largest social enterprise, ‘Happy Narae Co.’. Staring with socially responsible purchasing, it will make continued efforts to achieve win-win growth through an innovative value chain by fostering new social enterprises and expanding employment for the vulnerable.

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Why do we have to pay attention to social enterprises?

A member of the Happiness Foundation, thinking of how to innovate the way of sharing

Q U E S T I O N

Social Enterprise8 9


Material support can be a quick fix to social problems, but it cannot be a fundamental solution. The Happiness Foundation has been striving to innovate the way of sharing in order to make it sustainable, and concluded that social enterprises are the most efficient solution to social problems.

The Happiness Foundation takes note of social enterprises as it tries to innovate how to make social contributions, while pursuing both social and economic value based on the market mechanism and managerial effectiveness.

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Social Enterprise

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1 ‘Se-sang Social Enterprise Contest’ to discover innovative social enterprise models 2 The traditional village of Andong selected to pilot ‘Happy Traditional Village’ 3 ‘Happy Farm’ to provide jobs related to growing plants, flowers and shrubs as well as landscaping


There are many talented and passionate people who can create value in society. In order to give them a chance to stretch their wings, more systematic and practical support is required. The Happiness Foundation establishes social enterprises based on innovative ideas and creates a stable eco-system where the social enterprises can deliver sharing in a sustainable way and help make more people happy.

Social Enterprise Programs

Innovation PracticesIn 2012, the Happiness Foundation achieved innovation in the field of social enterprise as a result of constant challenging and experimenting. It generated a sustainable profit from social enterprises, proposed a model for social enterprises, and established social enterprises that aim for win-win growth. Now, it shares its know-how and success.


Creating a sustainable profit : Happy Dosirak

By introducing the market mechanism to a free-lunch program run on a limited government welfare budget, it generated profit and ensured sustainability of the program.

• Collaborated with multiple social partners - for the first time in Korea

• Provided paid-lunch and catering serviceCreated profit by providing high-quality paid-lunches and catering services with a professional chef and nutritionistat each center.

• Established the social cooperative union Happy Dosirak

Opened more than 20 local centers and a social cooperative union to reduce costs by purchasing food supplies as a group and standardizing the menu, while boosting its competitiveness and social value.


Supporting facility and operational expenses and managing programs

Local non-profit organizations

Running lunch service centers

Government (Ministry of Employment and Labor)

Supporting administrative and regulatory practices

Local governments

Covering lunch service expenses

Happy Dosirak

Innovation Points

• Improved the quality of lunch for the public

Delivered high-quality lunch boxes worth 6,400 won with limited government budget of 4,000 won per person.

• Became more self-reliant

Achieved actual level of independence of 96.2%, up 6.8% on average from 2011.

• Created stable jobs

Hired 380 people (282 of them

underprivileged) for cooking and delivery in 2012.

• Provided free lunch

Delivered 12,000 lunch boxes every day through 29 local centers nationwide in 2012.

In budget terms, In quality terms,

4,000 6,400

380 new jobs

12,000 lunch boxes a day

6.8 %

Innovation Outcome

wonper person

wonper person


Major Performance

Three major achievements in social enterprise programs

Firstly, the Happiness Foundation discovered and spread an innovative, yet sustainable social enterprise model.

Through the establishment and support of social enterprises (Happy After School, Happy Library, Happy New Life, Daegu Happy Future Foundation, Happy Traditional Village and Happy Dosirak), the Foundation created remarkable economic and social value. Plus, the Foundation played a leading role in vitalizing social enterprises by discovering and supporting innovative external social enterprises through Se-sang Social Enterprise Contest and Appropriate Technology Social Enterprise Festival.

Secondly, the Happiness Foundation fostered talented and passionate social entrepreneurs.

It laid the basis for fostering future talents, the key to creating an eco-system of social enterprises, by operating Se-sang Social Enterprise School along with the launch of Social Entrepreneurship MBA.

Thirdly, the Happiness Foundation established a network for communication and cooperation between social enterprises.

With ‘Se-sang’, ‘Se-sang-ae-na Networking Day’ and various support and sponsor programs, it vitalized the network for social enterprises, established the criteria to evaluate the value of social enterprises, and thus laid the ground for the social capital market.

Social and economic values created from social enterprise programs

1. Social value • Created 1.5 times more jobs than in 2011

* Based on social enterprises that have been in business for one year or above (excluding Happy Narae Co.)

• Expanded various social values Reduced private education expenses by

strengthening public education, supporting releasedprisoners’ rehabilitation through vocational training, and improving access

for the disabled to Internet. • Spearheaded changes in social enterprise

programs and its eco-systemLed changes in after-school policy enforced by the Ministry of Education, Science and Technology by making use of private resources to vitalize the eco-system of social enterprises with social enterprise marketing and IT services.

2. Economic value • Three social enterprises (Happy Green Recycling,

Happy ICT, Daegu Happy After School) reached the break-even point in the second year of establishment

• Increased sales by 271% over 2011

* Based on social enterprises that have been in business for one year or above (excluding Happy Narae Co.)

In 2012, the Happiness Foundation strived for the growth of social enterprises. By discovering an innovative, yet sustainable social enterprise model, the Foundation managed to realize various social values, fostering talented social entrepreneurs and establishing a network for communication and cooperation between social enterprises. Here, we introduce the major achievements made in the field of social enterprise and the programs run by the Foundation.

492new jobs

3.8billion won

10.33billion won

Proposing a model for social enterprise : Happy After School

Happy After School continues to accumulate know-how in the sustainable after-school model, thereby evolving and growing to provide solutions to many different problems in society.

Establishing a social enterprise that aims at win-win growth : Happy Narae Co.

SK’s subsidiary, MRO korea turned into the country’s largest social enterprise. Happy Narae Co. has innovated the value chain by proposing a new social enterprise model that aims at win-win growth by leveraging corporate capabilities.

• Collaborated with multiple social partners

• Launched programs in more regions

Started in Seoul and extended to Busan, Daegu and Ulsan, accumulating and spreading innovative know-how in the after-school model.

• Provided organized programs

Established an efficient achievement management system and provided various programs that supplement public education.

Innovation Points

• Reduces private education expenses

Saved 3.44 billion won in private education expenses, with 12,500 students enrolled.

• Creates stable jobs

Hired 610 people (50 of them

underprivileged) in 2012 for the after-school where 12,500 students from 100 schools enrolled.

Innovation Outcome

Happy After School

SK

Investment and managerial support

Individual schools

Sending students and providing space, supporting operation

Education office

Selecting schools, supporting instructors and contents

Local non-profit organizations

Running lunch service centers

3.44 billion won

610 new jobs

• Socially responsible purchasing

Supported social enterprises and socially vulnerable enterprises by purchasing from them (preferential purchasing).

• Employing the vulnerable

Provided secure jobs for the vulnerable, including North Korean defectors.

• Leveraging corporate capabilities

Leveraged its scale to purchase consumable supplies and support business management.

Innovation Points

• Increased profit

Increased profit by 7.78 billion won through preferential purchasing from 82 social enterprises (including socially vulnerable

enterprises) in 2012.

• Created stable jobs

Hired 136 people including NorthKorean defectors (14 of them underprivileged) in 2012.

Innovation Outcome

82 social enterprises / 7.78 billion won

136 new jobs


755new jobs


Establishing and/or supporting social enterprises

Social enterprises established or supported in their establishment by SK

Social Partners Model

Established in partnership with various organizations

Happy After School (in Seoul, Busan, Daegu, Ulsan)www.happy-school.org

As a social enterprise than runs a after-school program in collaboration with local governments, educational authorities and individual schools, Happy After School contributes to addressing social problems by enhancing the quality of public education, reducing private education costs and creating new jobs. It started in Seoul and spread into other regions, including Busan, Daegu and Ulsan.

Happy Library www.happylibrary.org

Happy Library is a social enterprise that revives and makes use of libraries which have become inactive or defunct. It was established in cooperation with the Ministry of Culture, Sports and Tourism and Gyeonggi-do to promote a thriving book-reading culture and thus nurture creative talents. The enterprise promotes donations by encouraging book donations and bridges the information and knowledge gap between people by reviving libraries in remote areas.

Happy New Life www.happynewlife.or.kr

Happy New Life was established by SK and the Ministry of Justine with the aim of helping prisoners once released to be rehabilitated within society. It provides job trainings at coffee shops and laundry plants so that they can succeed in landing a job or establishing a business.

Daegu Happy Future Foundation www.dg-hf.org

As the country’s first social enterprise to provide career education to teenagers, it was established in partnership with Daegu Metropolitan Office of Education. It provides career

education appropriate for teenagers to help foster talents. Plus, it not only creates jobs, but also makes a contribution to community by training instructors specialized in career education.

Happy Traditional Village

As a social enterprise that manages and uses Korean traditional houses, it was established in cooperation with the Ministry of Culture, Sports and Tourism, Gyeongsangbuk-do and Andong. It aims to develop cultural products by making use of traditional houses of historical, academic and artistic value as well as aiming to both inherit and advance traditional cultures. Also, it hires the underprivileged in the local community.

Happy Dosirak www.happydosirak.org

Established in cooperation with NGOs, the government and local authorities, Happy Dosirak provides free lunch for our neighbors in need. It delivers 12,000 lunch boxes everyday through 29 Dosirak Centers across the country, while solving social problems by hiring the vulnerable as cooks and delivery staff. It has also provided 320,000 meals for 10,300 undernourished children who have not received government support.

SK Biz R&C Model

Established through the support of SK subsidiaries

Happy ICT www.happyict.co.kr

SK Telecom established Happy ICT, leveraging its experience and expertise in information and communication technology. Its main focus is to provide IT services for social enterprises in need of investment and support, while also providing underprivileged IT aspirants with education and work experience in order to nurture future IT specialists.

Happy Farm www.happy-farm.org

Happy Farm is a social enterprise that SK Innovation established in cooperation with Gyeonggi-do, Siheung City and SK Forest. It provides jobs for the vulnerable in growing and planting flowers, plants and shrubs and landscaping, and operates shelters to promote a healthy leisure culture.

Happy Green Recycling www.happygr.org

Happy Green Recycling was established jointly by SK Broadband, Gyeonggi-do, Anseong City and the Korea Employment Agency for the Disabled. It works on environmental problems by inspecting recollected leased


Happy Dosirak delivers a heartfelt lunch box to those in need

Seoul Busan Daegu Ulsan Total

Number of schools 15 30 46 9 100

Number of students 4,488 1,908 4,295 1,813 12,504

* As of 2012


Building a communication and cooperation network for social enterprises

The Website Se-sang www.se-sang.com

Created by SK, the website Se-sang means ‘to sangsang SE (imagine Social Enterprise)’ and is designed for social entrepreneurs who want to challenge themselves and imagine a better future. By providing the knowledge and information required for the eco-system of social enterprises and establishing networks, it is set to serve as an online platform that connects social capital.

Number of members: 8,018 (as of 2012)

Se-sang-ae-na Networking Day

Se-sang-ae-na Networking Day provides a forum for social entrepreneurs and those interested in social enterprises to share thoughts about a wide spectrum of social issues and possible solutions together. It provides the opportunity to network with other participants and meet like-minded people working in social enterprises and related organizations.

Held 6 times, more than 280 people participated

Establishing criteria to evaluate the value of social enterprise

The Happiness Foundation strives to set up the right standards to measure the value of social enterprises. We quantify the value created by social enterprises, inform investors and promote the creation of a social capital market.

Support and cooperation

• Supporting ‘Social Venture Contest’ hosted by the Ministry of Employment and Labor

The Happiness Foundation supports Social Venture Contest, held for the development of social enterprises by the Ministry of Employment and Labor every year since 2009.

• Supporting Enactus Korea

The Happiness Foundation supports Enactus Korea (formerly, SIFE Korea), a nationwide college student club to help students contribute to their local community through business projects and grow into leaders with a sense of social responsibility.

1 Se-Sang Social Enterprise Contest2 Se-sang Social Enterprise School3 Appropriate Technology Social Enterprise Festival

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equipment and washing and packaging them for recycling. Besides, it provides employment for those with disabilities.

Happy Web & Media www.hwm.or.kr

SK C&C established Happy Web & Media to promote IT service projects with a particular focus on the disabled. Here, IT experts with disabilities design, implement and operate websites, mobile apps, social media-related systems for the government, public agencies and private companies.It aims to improve the quality of life for those marginalized in the information society, while increasing awareness of the disabled.

Happy Narae Co. www.mro.co.kr

SK’s subsidiary MRO Korea, which used to purchase consumable materials on behalf of SK, has morphed into social enterprise named Happy Narae. As the country’s largest social enterprise, Happy Narae Co. boasts over 100 billion won in annual sales. It makes preferential purchases from social enterprises, supports and fosters new social enterprises and, in so doing, advances a new model for social enterprises that aim at win-win growth.

Happy F&C Foundation

Happy F&C Foundation is a social enterprise aimed at growing teenagers as skillful and experienced workers, offering a new experience of Korea’s excellent culinary culture to thus promote the globalization of Korean cuisine. The profit it makes is re-invested to support and educate the youth.

Discovering and supporting the growth of external social enterprise models

Se-Sang Social Enterprise Contest

The contest is designed for people and companies that wish to share innovative ideas and solve social problems in the form of business. It has been established as a gateway to discover and foster social enterprises with growth potential as well as capable burgeoning social enterprises.

Held 7 contests so far, with 514 business ideas proposed and 32 social enterprises and items selected

87% of social enterprises and items selected have been developed into an actual business or continued to remain in business

Appropriate Technology Social Enterprise Festival

The Appropriate Technology Social Enterprise Festival is an initiative to develop appropriate technologies and establish community-based social enterprises to help the poor and marginalized. In cooperation with Good Neighbors, Sharing and Technologies Inc and KOTRA, it conducts field surveys, seminars, technology development camps and the Appropriate Technology Social Enterprise Festival, thus contributing to reviving the eco-system of appropriate technologies both at home and aboard.

Held 3 festivals so far, with 73 items proposed and 20 social enterprise-related ideas generated

Fostering Social Entrepreneurs

Se-sang Social Enterprise School

This is to foster professional social entrepreneurs through well-organized education programs to have a better understanding of social enterprise and help build business models and social missions. It provides carefully selected students with differentiated courses by a group of qualified instructors and offers work experience and networking opportunities as well.

Held 13 sessions in 6 regions, fostering 950 future social entrepreneurs

80% of students agreed the program was (very) helpful in understanding the social enterprise eco-system

Social Entrepreneurship MBA

Our world’s first social entrepreneurship MBA fosters talented social entrepreneurs with innovative ideas and management know-how. A group of excellent professors from KAIST and a curriculum focused on on-the-job training will enable students to have the ability to start a social enterprise of their own upon graduation. They will be granted an official Master’s degree certified by the Korean Ministry of Education, Science and Technology, once they complete the course. In addition, ‘SK Center for Social Entrepreneurship’ serves as an incubator for start-ups, supports social entrepreneurship MBA curriculum development and other special initiatives to nurture future social entrepreneurs.

Admission rate 3:1 (78 applied, 20 admitted)

The Happiness Foundation20 21

SK Happy Musical School students seeking foothold for growth through specialized education programs

Q U E S T I O N

Why should we focus on education and culture?

Education & Culture

We provide ‘culture’ programs in order to realize an ‘education’ based on self-reliance and the value of learning so thatthe brightest shine in the field. Creating a virtuous cycle of fostering talents and ensuring them grow into healthy members of society who in turn help those in need underlies our education and culture programs.

The Happiness Foundation is built on SK’s social contribution philosophy: fostering talents. We believe that sustainable happiness can come only through self-reliance and sharing that is rooted in education.

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Education & Culture22 23

1 SK Happy Cooking School - classrooms equipped with complete cooking stations 2 A college student volunteer group Sunny - decorating a bus station 3 SK Happy Car School - training with an actual car


Teenagers and college students are the ones who create happiness in our society. What is needed for their growth and better future is education and a wealth of experience that will come through in industry. Our education and culture programs provide well-organized education and volunteer programs to help them become a loving model in their respective areas and it also proposes a progressive social contribution model that makes a contribution to both industry and society.

Education and Culture Programs

Establishing an on-the-job training system : SK Happy School

Through on-the-job training and personality education suited to industrial needs, the Foundation produces skilled talents with core capabilities and a sense of vocation.

Volunteering globally : a college student volunteer group, Sunny

College students in Korea and China are leading positive changes in society through various social activities to share their knowledge and talents with local communities.

Innovation PracticesIn 2012, the Happiness Foundation made use of its expertise, bringing about innovation in the areas of education and culture. Starting with an on-the-ground job training system, the Foundation promoted a worldwide volunteer service. It also proposed a new paradigm in Korean cuisine and established the basis for an eco-system of original musical production. Here, we would like to introduce the innovations and achievements realized through our knowhow.

• Special curriculum

Provides well-organized and efficient curriculum, including both theory and practice, developed together with industrial experts.

• Classrooms designed like real industrial settings

Provides education and training programs, along with classrooms equipped with cooking stations, musical practice rooms and a stage for graduation performance.

• Nationwide organization

College students promote various activities to spread a culture of social participation in 10 regions across the country.

• Launch of SK Sunny in China

Launched SK Sunny China replicating the system and operation experience of SK Sunny Korea.

Innovation Points

Innovation Points

• Course completion rate

266 of 369 students enrolled graduated in 2012.

• Fostering experts with practical skills

181 of 266 graduates found employment in 2012.

• Hours dedicated to volunteering

A total of 830,658 hours of volunteering since its launch in 2003 to 2012.

• Growing number of participants

Total number of participants reached 36,469 - SK Sunny Korea grew 17 times since launch in 2003, SK Sunny China 17 times since launch in 2010.

Innovation Outcome

Innovation Outcome

68%

72%

830,658 hours

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17 times / 12 times

The Happiness Foundation26 27

Presents a new paradigm of Korean cuisine : O’neul, the Korean Cuisine

O’neul, the Korean Cuisine provides a delicious blend of traditional and modern Korean cuisine together with high-quality service, offering new value and experience of a vibrant culinary culture.

Established the basis for an eco-system of original musical production :

SEEYA the Project Box

SEEYA the Project Box aims to develop and expand the original musical industry in Korea by providing a communication channel with the audience and a well-organized artist training program.

• A place that allows a multi-dimensional experience for customers

A place with multiple features such as a hall, a bar and private rooms.

• Service provided by a group of experts specializing in different areas

Professional sommeliers and customer service and management experts to serve sincerely and wisely.

• Upgraded Korean cuisine

The menu reflects modern tastes, yet preserves the traditional style of Korean cuisine.

Innovation Points

• Restaurant revisit rate

60% of customers come back again to O’neul, the Korean Cuisine.

• Hosting or participating in global events

‘IF Design Awards’, ‘Seoul Gourmet’ and ‘Culture Communication Forum’ in 2012 as well as the ‘Gwangju Biennale’ in 2013 (participation confirmed).

Innovation Outcome

60%

• Communication program between artists and audience

‘Creative Lounge’

• In-depth understanding of musicals

‘Behind the Stage’

• Supporting talented musical artists

Cho, Yong-Sin (book/directed ‘Moby Dick’), Kim, Mun-Jeong (music director of ‘Elizabeth’, ‘Les Miserables’ and ‘A Tale of Two Cities’), Lee, Na-O (nominated for best original lyrics/composing at 2012 Korea Musical Awards) etc.

Innovation Points

• Number of participants

1,045 people have participated in the program.

• Level of satisfaction with the program

87% of those who participated in audience education program were satisfied.

• Award-winning musical

‘Fly, Mr. Park’, a musical supported by the program received the Encore Award at the 2012 Seoul Musical Festival.

Innovation Outcome

1,045 in total

87%

A student at SK Happy Musical School who played a major

role in ‘The Story about Pyeong-gang, the Mirror Princess’

Education & Culture


Sunny www.besunny.com

Talent Fostering Program

The program produces leaders to spread a culture of social participation. In this program, we conduct a workshop for the Sunny Leaders Group and provide special training for participants to develop themselves and grow up into leaders who will bring about positive changes in society.

ICT Programs

ICT Programs are designed to bridge the IT information-gap between different social groups and regions. The program not only teaches elderly people how to use mobile phone through one-on-one education, but also provides guidance on the right way of using mobile phones and how to avoid or handle scamsby phone through a puppet show.

Community Programs

The program aims to prevent and improve regional problems by providing various community-specific volunteer services. On this program, the students visit community child care centers around the country to provide one-on-one tutoring and mentoring and they also decorate the walls.

Global Programs

Global Programs are designed to promote volunteer activities and cultural exchange between Korean and Chinese students in an attempt to help them better understand each other’s culture and care more for their community. In 2010, Sunny in China was established to cater to the needs of Chinese college students and has substantively improved the educational environment in China, promoting cultural exchange between Korea and China. Such initiatives have enabled participants to develop a sense of glocal citizen.

Education Programs

SK Happy School www.skhappyschool.com

SK Happy Cooking School

SK Happy Cooking School aims to produce qualified cooks. We provide on-the-job training in classrooms equipped with complete cooking stations, following a well-organized, practical curriculum developed together with experts. We help students gain in-depth knowledge of cooking through skill-up trainings, liberal arts classes and special lectures by experts, and find employment by maintaining close relationships with businesses.

SK Happy Musical School

The program is designed to produce professional musical performers. Together with practical training in acting, singing, ballet and musical dance, we also provide special lectures run by actors on the stage and lessons that include an understanding of the history of musicals, writing and watching performance to help our students get a better understanding of the industry.

SK Happy Car School

SK Happy Car School is a program that fosters automotive engineers and repair and paint specialists. It provides hands-on experience and on-the-job training, together with theory based lessons. We also work with many automotive businesses to ensure that this program leads to actual employment and that graduates continue to build up their skills.

Culture Programs

O’neul, the Korean Cuisine

O’neul, the Korean Cuisine is a business model designed to make a social contribution through its high-quality food service. The combination of a delicious blend of traditional and modern Korean cuisine and a culture space made of a hall, bar and private rooms with a group of people specializing in different services like wine, customer service and management presents a multi-dimensional experience for visitors. The restaurant also gives SK Happy Cooking School students a chance to take an internship and find a position.

SEEYA the Project Box

SEEYA the Project Box is designed to implement educational and industrial projects, centering on musical performances. It supports quality works of musical and talented artists as well as a production company with the aim of establishing a network with those in the musical world to help develop the domestic musical industry. SEEYA is also used for SK Happy Musical School students as a training venue.

1 SK Happy Car School2 A college Student Volunteer Group ‘Sunny’

3 SEEYA the Project Box

1

2

3



“It was lucky that I studied at SK Happy Car School. I always wanted to become an automotive engineer, and thanks to

SK Happy Car School, my dream came true. The on-the-job training was really useful and practical, and I’ll never forget the friendship

I forged with other students.

”SK Happy Car School | the 2nd engineering course graduate,

Jeong, Dae-Gwang

“I studied cooking with no worries at all.

I could take any lesson I wanted in addition to the basic curriculum. Also, I gained on the job experience, earlier than anyone of

my own age, by taking an internship. Thanks to SK Happy Cooking School’s

differentiated education program, I now have a clear vision about my future.

”SK Happy Cooking School | the 4th SK Happy Cooking School

graduate, Lee, Su-Yeon

“The modern Korean restaurant is described

as the restaurant that keeps the taste of Korean cuisine but designed in a sensuous style for

both Koreans and foreigners who enjoy modern food styling and interiors. An example is

‘ssuktteok (mugwort rice-cake) waffle’, one of the most popular menu items at O’neul. This is ssuktteok baked on a waffle iron.

It looks just like a waffle, but tastes like traditional ssuktteok. …Modern North European-style

tables and chairs create an exotic atmosphere of an Italian restaurant or cafe.

Chosun Ilbo on October 10, 2012

”O’neul, the Korean Cuisine | Press report

“It is difficult to get a chance to talk about

original musicals. I’m grateful that SEEYA gave me that chance. As you have

done so far, please promote original musicals and continue to create an

environment where they can be truly appreciated.

”SEEYA the Project Box | Choi, Ji-Seon who participated in the third

Creative Lounge

“I learned to care about us, rather than just thinking about oneself. While doing various activities as a member of Sunny for three years, I learned to interact with others and look at the world from a broader

perspective. I was able to gain an invaluable experience of going outside the small

campus, volunteering with students from other schools and making great memories

with good friends through Sunny.

”Sunny | the 5th leader group, Choi, Yu-Jin


O’neul, the Korean Cuisine that raises the value of Korean

cuisine by delivering the tradition of the yesterday and the

promise of tomorrow together

You are truly happy when you try to be happy yourself and grow together with others. It all starts by making ceaseless efforts to make your dream come true. In doing so, you find your worth and feel happiness as you grow slowly, and yet steadily.

Nurture tomorrow’s talents

Sustained and growing happiness

My growth translates into the growth of our neighbors and society as a whole, where it becomes greater and lingers on so more and more people can enjoy and share it together.

The Happiness Foundation dreams of happiness that grows, a happier today than yesterday, and a happier tomorrow than today.

To grow our happiness

Publication Date. March 2013 / Publisher. The Happiness Foundation / Publishing Director. Chey Kee-Won /

Editing. Strategic Planning Team of The Happiness Foundation / Design. Hongdesign

The Happiness Foundation appreciates the importance of material value and is aware of the right way of transparent management.We know that the fundamental solution to social problems is to help provide the necessary conditions and opportunities for self-sufficiency.To this end, we will continue to forge a new paradigm in social contribution with the aim of bringing a sustainable, yet innovative change to society.

Financial Highlights2012 financial report of the Happiness Foundation

Revenues Item Amount(KRW) Remark

Expenditures Item Amount(KRW) Remark

*Details on donations

*Details on program expenses

*Details on revenues from programs

The balance carried forward 23.03 billion The balance carried forward from 2011from the prior period

Donations* 30.21 billion Raised by donations

Revenues from programs* 5.69 billion Generated by operating programs

Others 0.97 billion

Total 59.90 billion

The balance to be carried 36.82 billion The balance to be carried forward into 2013forward into the next period

Program expenses* 17.66 billion Expenses for various programs run by the Foundation

Equipment and Facilities 4.08 billion Expenses for equipment and facility purchase and maintenance

Administration 1.34 billion Expenses for operating and managing the Foundation’s office

Total 59.90 billion

Donation from SK 28.90 billion

Donation from 1.31 billionbusinesses / individuals

Total 30.21 billion

Education and Culture 7.01 billion

SK Happy School 1.38 billion Cooking School, Musical School, Car School

Culinary culture 1.55 billion O’neul, the Korean Cuisine etc

Performing arts 1.96 billion Musical production platform

Sunny 2.12 billion Sunny in China, new PGM, etc

Social Enterprises 10.65 billion

Establishment / supporting 6.51 billion Establishing, nurturing, and supporting the operation of the establishment of social social enterprises enterprises

Fostering talents and building 4.14 billion Social Entrepreneurship MBA, the Website Se-sang, etc a cooperation network

Total 17.66 billion

Culinary culture 0.04 billion

Performing arts 5.65 billion

Total 5.69 billion

Category Economic Value Social Value

Revenue Ordinary Employment Social Remark

(KRW) income (KRW) benefits (KRW)

Happy After School 2.12 billion △0.10 billion 241 persons 1.44 billion Increased profit for the vulnerable: 0.12 billio

in Seoul Private education expenses saved: 1.16 billion Providing other social enterprises with a chance

to create profit, etc: 0.16 billion

Happy After School 0.67 billion △0.30 billion 61 persons 0.84 billion Increased profit for the vulnerable: 0.10 billion

in Busan Private education expenses saved: 0.71 billion Providing free lectures: 0.03 billion

Happy After School 2.09 billion 0.09 billion 189 persons 1.30 billion Increased profit for the vulnerable: 0.11 billion

in Daegu Private education expenses saved: 1.11 billion Providing free lectures: 0.08 billion

Happy After School 0.74 billion △0.04 billion 119 persons 0.60 billion Increased profit for the vulnerable: 0.04 billion

in Ulsan Private education expenses saved: 0.47 billion

Providing free lectures: 0.09 billion

Happy Library 0.03 billion △0.34 billion 14 persons 0.32 billion Reviving libraries: 0.22 billion

Supporting book donations: 0.10 billion

Happy New Life 0.15 billion △0.18 billion 10 persons 0.34 billion Social costs for rehabilitation saved: 0.31 billion

Increased profit for the vulnerable, etc: 0.03 billion

Happy ICT 1.58 billion 0.17 billion 26 persons 0.09 billion Increased profit for the vulnerable, etc: 0.07 billion

Providing an internship program for

the vulnerable: 0.02 billion

Happy Farm 0.39 billion △0.26 billion 16 persons 0.02 billion Increased profit for the vulnerable, etc: 0.02 billion

Happy 1.79 billion 0.15 billion 51 persons 0.30 billion Increased profit for the vulnerable, etc: 0.30 billion

Green Recycling

Happy 0.77 billion △0.71 billion 28 persons 0.33 billion Increased profit for the vulnerable, etc: 0.20 billion

Web & Media Effective value of on-the-job training, etc: 0.13 billion

Happy Narae Co. 154.30 billion 1.30 billion 136 persons 1.78 billion Profit returned: 1.23 billion

Increased profit for social enterprises through

preferential purchasing: 0.49 billion

Increased profit for the vulnerable, etc: 0.06 billion

Total 164.63 billion 0.22 billion 891 persons 7.36 billion

Total(excl. Happy Narae Co.) 10.33 billion △1.52 billion 755 persons 5.58 billion

* Based on social enterprises that have been in business for one year or above

Motivation in NumbersEconomic and social achievements of SK social enterprises in 2012

Documents

2012 Annual Report The Happiness Foundation