At LOTI, we like to think about any innovative service or initiative as a combination of people, tech, data and methods. How can we bring together all four elements into a social value initiative? I sat down with the team at Seocho-gu (Seocho District) in South Korea to learn more about their “Seocho Coin” initiative, which combines blockchain-based technology with incentivising people who live or work in Seocho to earn and spend “coins”, looking to tackle issues such as climate change and the social costs of an ageing society. 

Q: To set the scene for our London teams, tell us a bit about Seocho-gu.

Seocho-gu: Seocho literally means ‘lucky grass’ (Seoripul in Korean) and is one of the administrative districts (like London boroughs) of Seoul City, located in the southeastern part of Seoul. We have a population of 414,428 (2026), and our district is a unique combination of green parks, arts and culture, and global innovation.

Q: Why was Seocho Coin created?

Seocho-gu: We are all facing the same global challenges: the spread of social inequality, climate change, and the increasing social costs of an ageing society. We wanted to use smart technology to realise social value through simple activities in our residents’ daily lives.

The Seocho Coin is our “Index of Social Value Realisation”. It provides a tangible reward—1 Seocho Coin equals KRW 100 (about £0.05)—for actions that alleviate these social burdens. 

Q: London boroughs are often wary of blockchain. Why use it for a civic reward system?

Seocho-gu: Trust is the bedrock of any government digital service. We chose blockchain because it helps prevent tampering and provides an auditable transaction record.

From a data management perspective, this means the system is transparent and immutable. It allows us to issue coins to resident-led groups—such as our “Regional Autonomous Disaster Prevention Team” or “Volunteer Camp”—with complete confidence in the ledger’s integrity.

Q: Let’s talk about the User Experience. How do users actually earn and spend these coins? 

Seocho-gu: We focused on a frictionless design. Both residents and those working in Seocho can simply download the free app from the App Store or Google Play and sign up, providing their work or home address. The core interaction is the QR code scan.

We’ve identified four key “Social Value Realisation Activities” where users can earn coins:

• Net-zero Realisation: Delivering recyclables (hangers, ice packs) to “Zero Shops” or collecting transparent PET bottles.
• Health Improvement: Encouraging older residents to participate in yoga or breathing exercises at community centres to reduce social costs related to health management.
• Disaster Prevention: Reporting safety hazards through voluntary patrols and facility checks.
• Talent Donation: Providing volunteer services such as mentoring or free haircuts.

Q: You also mentioned that users can also earn coins simply by walking or using their tumblers?

Seocho-gu: Yes, that’s right. In addition to the main categories of activities introduced above, we also run smaller, repeatable ways for users to earn coins.

For example, users can earn coins by reaching 10,000 steps in a day using the in-app pedometer, or by using a tumbler at participating cafés and bakeries that support the programme.

We also offer light, gamified options such as this month’s check-in challenge (checking in on the app at least 20 times per month), a daily quiz, and a daily roulette.

Through these features, we are creating an environment where residents are encouraged to participate voluntarily.

Q: How does the “spending” side work? Is it restricted to government services?

Seocho-gu: Not at all. To create a real ecosystem, the coins must have utility. Residents can use them to pay for cafeteria meals at senior welfare centres, tuition for lectures at community centres, or as a payment method at SeoulPay partner locations in the private sector.

Crucially, we also integrated a donation feature. Users can donate their coins to the Community Chest of Korea or local social welfare facilities, further reinforcing the social value cycle.

Q: How do you use the data and user feedback to iterate on the initiative?

Seocho-gu: We view the coin as a tool to motivate behaviour. The most important lesson we’ve learned is that motivating residents to take action—no matter how small or modest—can lead to tangible changes that establish a virtuous cycle.

We monitor which activities are most popular and where coins are being spent to adjust our social policy. For example, by encouraging elderly participation in health classes, we aren’t just giving away coins; we are actively reducing long-term social security and health management costs.

It was started in 2023, so it has been three years now, but residents and user feedback have been at the core of this initiative. For example, an offline survey in 2023 showed that the most common concern was the lack of places to spend accrued coins. In response, we addressed this in our system revamp by expanding the number and diversity of places where Seocho Coins can be used—working with the Seoul Metropolitan Government to enable payments at a wide range of local businesses registered as Seoul Pay partners (such as cafés, restaurants, and other private retailers).

Q: What has been the response to the initiative so far?

Seocho-gu: We have had over 17,000 users of the initiative to date, and we have seen a steady increase in users over the three years. In particular, membership grew year-on-year and increased significantly following the 2024 system revamp into a mobile app, helping more residents join and participate more easily.

In terms of measurable outcomes, the initiative has accumulated over 2.3 million Seocho Coins, and a substantial share has also been donated through the in-app donation feature—supporting vulnerable groups and reinforcing the social value cycle. Expanding where coins can be used has also been a key factor in sustaining engagement: by linking Seocho Coin to Seoul Pay partner locations, residents can use coins in a wide range of everyday settings, which has helped connect participation to the local economy.

At the same time, we continue to focus on practical challenges such as ensuring easy onboarding for all generations and continuously improving the user experience based on feedback—especially around where and how residents can spend their coins. 

Q: What is your one piece of advice for a London borough looking to pilot a similar “Social Value” token?

Seocho-gu: Start with the User Journey. Even the best-intentioned initiative can quickly become a burden if it does not create conditions for voluntary participation—leading to low uptake and high promotion costs.

For Seocho Coin, we embedded earning and spending opportunities into everyday routines that residents were already doing or enjoying. Some people joined because they like walking and could earn coins simply by completing 10,000 steps. Others—such as older residents attending breathing or yoga classes—were not initially confident with digital tools, but started earning coins with support from fellow participants.

Once users enter the Seocho Coin ecosystem through one familiar entry point, it does not take long for them to discover many other ways to earn and use coins. Many then expand their participation—returning cartons and plastic bottles, reporting local facility issues, or bringing a tumbler to cafés—because the experience is easy, rewarding, and socially beneficial.

You may not be able to build the same reward mechanism for every programme, but the principle remains: always design from the user journey first.

Q: I’ve noticed that Seocho also has other circular inclusion initiatives, can you tell us more about them?

Seocho-gu: Yes, Seocho Coin is one of our participation and inclusion initiatives, and we also run a range of social and spatial inclusion programmes. One example is our “Seocho Repairs: Umbrella and Knife on Wheels”, which has recently received positive recognition from various organisations.

This initiative upgrades our existing neighbourhood-based “visiting repair” service into a fully mobile repair centre by converting a 1-ton truck. For a small fee of KRW 1,000 (about £0.50), residents can have broken umbrellas repaired and blunt kitchen knives sharpened.

In practice, low-profit repair services for everyday items like umbrellas and knives have been disappearing from the private market. At the same time, in a modern consumer society where these items are easily replaced, umbrellas and knives are often thrown away as soon as they are slightly worn or dull—despite the fact that they can be inconvenient to dispose of properly under local waste-disposal rules. By bringing repair services directly into neighbourhoods, we improve resident convenience while encouraging reuse and reducing waste.

We also strengthen the social inclusion dimension by employing participants from self-reliance work programmes (low-income residents with the capacity to work), creating jobs and providing opportunities for social participation. In this way, the labour costs for operating the mobile repair centre translate directly into income support for low-income residents.

We have also linked this initiative with Seocho Coin by enabling residents to pay the repair fee using their coins. This demonstrates how different departments coordinate and connect initiatives through joined-up administration, rather than running programmes in silos.

Overall, Seocho-gu is working to advance both environmental sustainability and social inclusion through practical, everyday services like these.

This blog was written in collaboration with Sungmin Jo and the Smart City Planning team, for more information about the Seocho Coin initiative, please visit their website.