A committee for establishing a private outfit aimed at nurturing impact finance in Korea opened Tuesday, in a bid to guide finance to serve increased roles for the benefit of society.

The Impact Finance Korea Establishment Committee held a press conference to announce its launch and said it will draw private capital to set up Impact Finance Korea (IFK).

Impact finance, or impact investing, refers to investments, loans or support for projects, companies or other funds mandated at addressing social and environmental issues. The IFK seeks to be a leader in this field in Korea, said Lee Hun-jai, a former deputy prime minister and the president of the committee.

"The IFK will finance businesses that contribute to society and develop various projects nurturing grassroots social financial institutions," Lee said at the conference in the Korea Press Center in Seoul. "The IFK will pursue creating social and financial value at the same time and contribute to building an inclusive society." 

Along with the IFK, Lee said the committee will set up Korea's National Advisory Board for impact finance. The board will be a public-private policymaking entity for impact investments and join the Global Social Impact Investment Steering Group (GSG), an international institution for investment. On top of Korea, four other countries seek to join the 13-member group.

The committee is comprised of high-profile financial figures. Along with the former deputy prime minister, Korea Social Investment Chairman Lee Chong-soo will lead the committee. Twenty other figures including Korea Financial Investment Association Chairman Hwang Young-key and EY Hanyoung Vice Chairman Yoon Man-ho will join it.

The IFK will be a control tower for Impact Capital Korea, a private equity fund, and Korea Social Investment, which will take charge of loans and supporting social companies. For the system, the committee plans to draw 70 billion won ($62.38 million) through donations this year and raise 200 billion won from investors. 

"For the past 15 years, the government has led impact investing," Lee Chong-soo said. "Out of 130 billion won spent on impact finance during the period, 110 billion won came from the government. Given the private sector can be more effective in addressing social issues, the IFK can play a pivotal role in expanding impact finance in Korea."