The Korea Herald

지나쌤

Conglomerates boost charitable activities

By Korea Herald

Published : Feb. 12, 2013 - 20:42

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Some South Korean family-controlled conglomerates have either created or strengthened their organizations handling corporate social responsibility, officials said Tuesday, in what could be an attempt to soothe widespread corporate bashing.

The move comes as many South Koreans have called for corporate social responsibility in recent years amid widespread perception that conglomerates are to blame for the wealth gap.

GS Group plans to unveil programs meant to provide social contributions after its chairman Huh Chang-soo stressed the importance of corporate social responsibility, officials said.

Huh is in a position to lead social contributions as he is chairman of the Federation of Korean Industries, South Korea’s largest business lobby that speaks for about 500 members, including Samsung Electronics Co.

Samsung Group, South Korea’s largest conglomerate, is working on details after deciding to put its affiliates’ organizations handling corporate social responsibility under the direct control of their chief executive officers, officials said.

SK Group, South Korea’s thirdlargest conglomerate, has said it would expand its existing unit responsible for social contributions.

The move comes as SK’s chairman, Chey Tae-won, was sentenced to four years in jail for embezzling 49.7 billion won ($45.3 million) from two SK Group affiliates for private investments.

Chey was imprisoned on Jan. 31 in a ruling that was widely seen as a clear departure from a long judicial track record of giving lenient punishments to chaebol bosses.

South Korea’s No. 2 retailer Shinsegae Group has created units at Shinsegae Department Store and discount chain E-Mart to help their suppliers and provide other social contributions.

The move also comes after E-Mart came under public fire over for allegedly illegally monitoring its employees to prevent them from joining a union.

Taekwang Group has also set up an organization responsible for promoting corporate social responsibility.

Last year, Lee Ho-jin, the former chairman of Taekwang Group, was sentenced to four and a half years in prison for embezzlement and breach of trust. Lee’s mother, Lee Seon-ae, was also sentenced to four years in prison for the same charges. Last week, prosecutors rejected calls to suspend the senior Lee’s sentence.

Last year, a total of 222 South Korean companies provided 3.12 trillion won to social welfare programs that range from scholarships and daycare centers to parks and welfare facilities, up from 1.08 trillion won in 2002, according to the FKI. (Yonhap News)