Chung’s W500b breaks Korean donation record

Latest in an increasing number of charity pledges by nation’s tycoons


Korea’s top businessmen are relaying to make personal donations as Hyundai Motor Group Chairman Chung Mong-koo launched his own initiative on Sunday.

Chung donated 500 billion won ($462 million) of his personal funds to the charity group Haevichi Foundation, making the nation’s biggest-ever contribution by a single person.

His donation is meant to create programs nurturing young talents from low-income households in fields from science to art to sports, Hyundai said.

“I will use the money to provide poor children with access to adequate education,” Chung said through the company’s statement.

Chung set up Haevichi in 2007 with about 150 billion won of his private assets and provided an extra 60 billion won in 2009.

The foundation came as part of his promise to give 840 billion won back to society until 2013.

The charity focuses on supporting students and multicultural families through scholarships and mentoring programs.

Chung’s donation is the latest in a string of contributions recently made by executives of the country’s large corporations.

Early this month, Hyundai Heavy Industries and other Hyundai affiliates unveiled a plan to set up a charitable foundation by taking 500 billion won out of their own pockets.

Rep. Chung Mong-joon of the ruling Grand National Party, the shipbuilder’s largest stakeholder, pledged 170 billion won in securities and 30 billion won in cash, which is estimated to account for about 10 percent of his personal wealth.

Other participants will raise the remainder of the funds. They include heads of Hyundai Marine and Fire Insurance, Hyundai Department Store Group, Hyundai Development and KCC.

Samsung Electronics chairman Lee Kun-hee and his family have also contributed around 800 billion won in 2006 through his scholarship foundation.

There had been criticism in the past that business leaders in Korea had paid little attention to “giving back to society” as noblesse oblige.

Bill Gates of Microsoft and prominent investor Warren Buffett have donated billions to help the poor and improve schools across the United States. Facebook founder Mark Zuckerberg has promised to give more than half his fortune to revamp state schools in New Jersey and elsewhere.

By Shin Hyon-hee (heeshin@heraldcorp.com)