The Chung Mong-koo foundation of Hyundai Motor Group has set up an educational program dubbed “On Dream School.”

The program is designed to foster outstanding figures among students from underprivileged households, Hyundai Motor said in a statement.

Its main functions will include providing students ― from elementary to college ― with scholarships and opportunities for high-quality education.

On Thursday, the social foundation signed a pact with the Ministry of Education, Science and Technology on information exchanges and close collaboration for the businesses.

“About 50,000 students in agricultural and fishing villages nationwide will benefit from the program,” a Hyundai spokesman said.

He added that about 10,000 students will be selected per annum for the educational services over the next five years.

In addition, the foundation will provide 13,000 college students from underprivileged households with financial support.

The foundation, set up by Hyundai Motor chairman Chung, plans to issue tuition fee loans with low or zero percent interest rates.

Over the next two years, about 13,000 college students will enjoy the educational support. Lending rates range between 0 and 3 percent.

About 5,000 students could be beneficiaries of the loans.

The Chung foundation, formerly Haevichi Foundation, will also support students struggling with high interest on loans from the secondary banking sector or private moneylenders.

By acquiring their former debts with high interest rates, the foundation is seeking to prevent some students from becoming credit delinquents, the company said.

By Kim Yon-se (kys@heraldcorp.com)