Several former Hyundai Group affiliates will set up a 500 billion won (US$467 million) foundation to help reduce social inequity and fuel corporate activities, the companies said Tuesday.
Funding for the Asan Sharing Foundation will come from Hyundai Heavy Industries Co. -- the world's largest shipyard -- as well as KCC Group, Hyundai Marine and Fire Insurance Co., Hyundai Development Co., Hyundai Welding Co. and Hyundai Department Store.
Of the total, Hyundai Heavy Industries Co. will foot 238 billion won, with the rest coming from other companies.
The foundation, which takes its name from the nickname of Hyundai founder and late chairman Chung Ju-yung, will use the money to carry on the legacy and spirit of the entrepreneur, who died in 2001.
Hyundai, the largest family-owned conglomerate in the country at one time, was broken up into several separate businesses after Chung's death, with his sons and siblings engaged in such diverse businesses fields as carmaking, steel production, shipbuilding and industrial plant manufacturing.
The foundation plans to support efforts to reduce the gap between haves and have-nots, and help young entrepreneurs as they try to set up new companies, officials said.
"The goal is to offer timely and necessary assistance that reflects the views of Chung Ju-yung," said a spokesperson for the foundation's preparatory committee. Chung Jin-ho, honorary professor at Seoul National University, is set to chair the committee.
The foundation, however, will not receive contributions from Hyundai Motor Co. and Kia Motors Corp., which already operate a similar foundation. Hyundai Group, currently run by Chung's daughter-in-law Hyun Jeong-eun, will not contribute to the foundation, either.
Hyundai firms to set up 500 bln won social foundation