[Editorial] Hyundai donations

It is refreshing that the children of the late Hyundai Group founder, Chung Ju-yung, now operating top-level enterprises have made large donations amounting to 1 trillion won ($950 million) from their personal assets for social service programs. The charity moves by Chung Mong-joon of the Hyundai Heavy Industries and Shipbuilding and Chung Mong-koo of the Hyundai-Kia Automotive Group, who were joined by some of their cousins, are hoped to spark a new trend among the nation’s conglomerates toward making greater social contributions.

We do not know what motivated the Chungs’ charitable actions but can guess that they were responding to the mounting calls from all sectors of society for large businesses to share greater responsibility for social harmony and advancement amidst ever-sharpening polarization between the haves and have-nots. Both Asan Nanum Foundation established by Chung Mong-joon and Haevichi Foundation of Chung Mong-koo stressed providing youths from poorer families with opportunities for good education, thereby increasing upward social mobility.

Chung Mong-koo was quoted as saying that he was particularly distressed observing so many university students becoming credit defaulters unable to repay their loans. It is believed that the charity organizations operated by the Hyundai brothers will make more scholarship funds available for promising students.

In this connection, we hope that the large businesses will make more positive efforts to provide jobs for high-school and university graduates rather than recruiting trained personnel from small enterprises. Win-win cooperation between large and small businesses is as much emphasized these days as the need for conglomerates to share their wealth for the welfare of the underprivileged. Securing the survival of small suppliers no doubt is the most important social contribution large businesses can make.

One may recall that Chung Mong-koo had made a commitment to donate 840 billion won in 2007 when he was accused of making illegal profits through business improprieties. As the criminal charges were denied later by the Supreme Court, Chung was relieved of the obligation, but he must have felt moral responsibility to make good on his pledge.

His contribution of 500 billion won worth of Hyundai Glovis Co. stocks to Haevichi Foundation this time is significant enough but he can further improve the public image of himself and his company through continued efforts to give opportunities for better life for as many youths as possible.