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By Kim Tae-gyu
Staff Reporter
Korean tycoons, who lead the country's unique conglomerates dubbed chaebol, are seemingly reluctant to donate despite their huge wealth, according to the Community Chest of Korea (CCK).
The Seoul-based charity, which draws the largest donations of any organization here, amounting to some 300 billion won a year, said Monday that it would hold a meeting late this month for those who have contributed more than 100 million won thus far.
A total of 17 are eligible for the gathering such as football player-turned-coach Hong Myung-bo and TV personality Hyun Young. But none of the tycoons heading the nation's 10 largest chaebol are members of the exclusive fraternity.
``In developed nations, including the United States, the lists of the wealthiest people are almost identical to those of the biggest donators. But things are different in Korea,'' a CCK spokesman said.
``Rich Koreans may have contributed to other organizations anonymously or established charity foundations titled after their own name. Their companies donate briskly but they hardly donate directly.''
The country's top 10 conglomerates like Samsung, Hyundai-Kia Automotive, LG, SK and Lotte groups have subscribed to CCK programs. Corporate contributions account for about two-thirds of its yearly collections.
Some experts point out that the company-oriented donation culture is not desirable.
``The time-honored conventions that tycoons do not separate their own wealth from that of companies may lurk in the nation's unique donation culture,'' professor Kim Sang-jo at Hansung University said.
``It is proper that donations are carried out by individuals rather than companies. In addition, shareholders must keep a tab on firms to check whether or not they make donations in appropriate manners ― for the sake of stakeholders not for tycoons.''
Kim also took issue with the charity foundations, which are occasionally set up with company money rather than that of an individual.
``Our conglomerates are suspected to take advantage of their chest foundations for the father-to-son wealth transfer since taxes are exempted under certain conditions,'' Kim said.
``Otherwise, they create press foundations to make good relationships with journalists. Both are not about giving helping hands to society but about serving the benefits of the tycoons.''
In response, chaebol cited the famous remarks of U.S. economist Milton Friedman ― the social responsibility of business is to increase its profits.
``The corporate activities themselves are significant contributions to society since they create jobs and boost the economy,'' said a spokesman at one of the country's top five chaebol.
``Plus, chaebol tycoons contribute much of their assets to foundations, which have nothing to do with power transfer. We need to see such activities without biases.''
Former Samsung Chairman Lee Kun-hee, Hyundai Automotive Chairman Chung Mong-koo, Lotte Chairman Shin Kyuk-ho and LG Chairman Koo Bon-moo created charities or scholarship foundations on their own, while SK Chairman Chey Tae-won takes charge of operating one established by his father.
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