Chung Foundation starts benevolent act

Support for 10,000 students forms initial part of Hyundai Motor’s big corporate endeavor

By Kim Tae-gyu

The Chung Mong-koo Foundation, formerly known as the Haevichi Foundation, will help tens of thousands of students from low-income households using the 650 billion won donated by the Hyundai Motor Group chairman.

The Seoul-based institution said Tuesday that it would support more than 10,000 college students, who suffer from prohibitively high interest rates from loan sharks or those who struggle to borrow money for their tuition.

“We will pick about 8,000 university students who borrowed money from savings banks or loan sharks, which levy as much as 39 percent in interest every year,” a Hyundai Motor Group official said.

“We plan to transform the loans into ones with an annual interest of 6.5 percent and pay overdue interest through our partner Kookmin Bank. And we will cover 3.5 percent of the interest.”

As a result, the official said, fresh loans would carry merely 3 percent in borrowing costs per annum for the underprivileged students.

“We will choose an additional 5,000 collegians, who could not borrow money due to difficult loan conditions so that they can enjoy the same benefits.”

In addition, the foundation said it will help out younger students from elementary, middle and high schools, including those from rural areas, to help cover their tuition and other expenses.

Approximately 4,000 students who lost their parents because of car accidents and teenaged breadwinners will benefit from the program.

“The initiative is not just about giving out one-off financial support for needy students. It is about helping them become outstanding members of society in the future,” the official said.

“The foundation strives to keep developing similar projects aimed at providing assistance so that the lack of wealth does not stand in the way of poor students.”

It also disclosed a plan to offer a substantial amount of funds to up to 1,000 potential entrepreneurs in their 20s and 30s although it did not reveal specific figures.

The assistance packages would include funds for start-up costs as well as consulting services from experts.