By Lee Hyo-sik
Is a youth job fund, set up in September under President Park Geun-hye’s initiative, a new form of tax targeting chaebol owners and corporate executives?
High-profile figures in the business world, including the heads of the country’s family-controlled conglomerates, have been rushing to donate money to the Youth Hope Fund over the past month. The envisioned state-run Youth Hope Foundation is expected to use the donations to implement a wide range of programs to help young people find jobs at home and abroad.
The question now is whether the business tycoons are providing the money solely to improve job market conditions for young people. Or are they doing so in a bid to curry favor with President Park who wields absolute power over who gets what?
When contacted by The Korea Times, companies only say that their owners and salaried CEOs have made the donations to the fund in good faith.
However, what business circle insiders are saying is different. They say most donors, particularly those who have reaped benefits under the incumbent administration, offered the money under the influence of “invisible” pressure.
“It is obvious that businesses feel pressure to do something when President Park says companies should do more to help young people find jobs,” said an executive at one of Korea’s major business associations, who refused to be named. “When the President donated money to the youth job fund, it was a given that the heads of large business groups and executives would follow suit.”
In particular, SK Group Chairman Chey Tae-won, who was pardoned in August after spending 24 months in prison, felt greater pressure than other chaebol owners, the executive said.
“Chey and other owners of large business groups viewed as beneficiaries of this administration had to make donations whether they wanted to or not,” he said.
The SK chairman offered 6 billion won ($5.2 million) out of his personal wallet to the youth fund.
An executive at another business lobby group, who also refused to be named, said that business leaders were willing to donate billions of won to the Youth Hope Fund because the amount was a small sum for them, as they have cash, stocks and real estate properties worth billions of dollars.
“Despite President Park’s consistent calls over the past few years, companies have remained reluctant to increase their number of new recruits,” said the executive. “But when the President donated money to the Youth Job Fund, I assume that chaebol owners were glad to follow suit because the amount was just pennies for them.”
He then said he had to donate part of his salary to the fund because all other senior managers at his company decided to do so. “Regardless of what I wanted, I had to offer 1.1 million to the fund. I didn’t want to do this but it is not like I had a choice.”
Samsung Group Chairman Lee Kun-hee donated 20 billion won to the fund, followed by Hyundai Motor Group Chairman Chung Mong-koo with 15 billion won and Lotte Group Chairman Shin Dong-bin with 7 billion won.