Hyundai starts social benevolence project

W650 billion programs to touch 84,000 underprivileged students, young entrepreneurs

By Oh Young-jin

Hyundai Motor Group Sunday unveiled a mammoth scholarship and “bootstrap program” to help out 84,000 underprivileged college and high school students as well as elementary school pupils from rural areas.

The five-year plan is aimed at providing support for talented but poor students to help them live up to their potential in the areas where they excel, a Hyundai official said.

The program is funded from the 500 billion won personal donation made last August by Hyundai Motor Chairman Chung Mong-koo, the largest individual act of charity in Korea.

At that time, Chung’s donation was made to the Haevichi Social Contribution Culture Foundation, an in-house foundation that spearheads the group’s social responsibility initiatives. Now the foundation will be tentatively renamed in English the “Hyundai Motor/Chung Mong-koo Foundation.”

As the program operator, the foundation will not just assist underprivileged students but also provide support for adolescents, who are seeking startup opportunities.

Youth unemployment and welfare for poor people are two of the biggest issues facing Korea with both ruling and opposition parties engaged in a competition to come up with better policies. The Hyundai program is geared to help address these big social issues.

The program will put a priority on helping out underprivileged students who are facing difficulties repaying high interest-rate student loans, the group’s officials said.

More specifically, the program will help students who are paying the legally-highest interest of 39 percent on loans convert it to a 6-percent interest-rate, while repaying the interest payment in arrears on their behalf.

For those who can’t afford to take out loans, new loans will be provided with 6-percent interest rate for up to three years. The interest payments will be paid in full.

Hyundai Motor said that about 13,000 students will be eligible for this project with the beneficiaries selected from those who are recommended by their schools, adding that a joint program with Kookmin Bank has already been prepared.

For middle and high school students from low-income families, a three-year program will be launched with the goal of helping scientifically-gifted students.

A total of 1,000 students from third-year in middle school to second year in high school will be given a chance to take advanced courses provided by colleges every year.

In addition, 2,100 elementary school students in remote rural areas will be provided with opportunities to make up for an educational divide with students from urban areas.

A total of 4,000 students from low-income families who prove to be artistically gifted; and minor bread winners as well as children, who are devastated by traffic accidents, will be provided with tuition, scholarships and a living stipend.

For 1,000 youths selected from those aged 19 to 39 every year, opportunities to startup will be financed in such areas as information technology, the environment, culture and arts. Professional consultants will also be assigned.

Furthermore, mobile medical services will be operated to give medical attention to 3,500 per year.

Also under the plan is an expansion of overseas social contribution programs, among other public-purpose programs.

The newly-named foundation has 650 billion won in trust.

Hyundai Motor said that the change in name reflected Chairman Chung’s determination to strengthen the conglomerate’s effort to reach out and contribute to society.

Lee Hee-beom, the foundation chairman, has resigned with his successor to be named shortly.