"Cheer Up Daegu" Companies, Endless Donation Parade

[Asia Economy Reporter Kim Hyewon] On the 28th of last month, when the novel coronavirus infection (COVID-19) was rampant throughout China, Hyundai Motor Group donated medical supplies and cash amounting to 15 million yuan (approximately 2.5 billion KRW). It was the first case among major domestic conglomerates to send humanitarian aid to China. Generally, when natural disasters or calamities occur domestically or abroad, companies announce support amounts for damage recovery according to their business ranking, so Hyundai Motor Group leading Samsung Group was considered somewhat unusual.

In just one month, the situation reversed, and as COVID-19 spread uncontrollably not in China but domestically, private companies quickly took action again. On the 26th, Chung Euisun, Executive Vice Chairman of Hyundai Motor Group, said, "I hope specific support is provided to directly help medical staff who are doing their best and medical activities such as treatment and quarantine," and donated 5 billion KRW to the National Disaster Relief Association. This was again the fastest donation among the four major groups.

On the same day, Samsung Group provided an emergency support fund of 30 billion KRW, six times more than Hyundai Motor Group. Earlier, on the 13th, to revitalize the domestic economy weakened by COVID-19, Samsung purchased 30 billion KRW worth of Onnuri gift certificates and distributed them to partner companies, followed by this 'generous' donation. Lee Jae-yong, Vice Chairman of Samsung Electronics, stated, "Samsung, which has grown with the support of the people, should share and cooperate with society in times like these," adding, "Let us do our utmost, however small, for those suffering or dedicating themselves to overcoming this crisis."

Such a donation culture led by the third and fourth generation of founders shows similarities and differences compared to previous generations. They do not limit themselves to financial support but also actively provide preventive supplies such as thermometers, hand sanitizers, and masks for low-income groups and self-quarantined individuals severely affected by abnormal economic activities, as well as relief goods like daily necessities kits, health food sets, and food kits. A notable example of a win-win donation culture is Hwajin Industry, a mask manufacturer and seller, which was able to increase its daily production from 40,000 to 100,000 masks, a 2.5-fold increase, with help from Samsung Electronics and Toray Advanced Materials.

Choi Tae-won, Chairman of SK Group, considered the 'eldest brother' of the business community, drew attention by donating 5 billion KRW to the Community Chest of Korea and providing in-kind support worth 400 million KRW. He also actively worked to revitalize local commercial districts hit hard by COVID-19 by frequenting restaurants near the headquarters in Jongno-gu, Seoul, instead of the company cafeteria, encouraging small business owners.

Reflecting Koo Kwang-mo’s style, LG Group is establishing a quiet donation culture. When COVID-19 broke out in China, LG Group donated masks and protective suits locally without distributing separate press releases, which was revealed later. The day before, LG Group donated 5 billion KRW to the Community Chest of Korea and provided hand wash products worth 1 billion KRW in kind through LG Household & Health Care. Lotte Group, led by Shin Dong-bin, is continuously supporting vulnerable groups facing food shortages with daily necessities and hygiene products, mobilizing its distribution affiliates along with a 1 billion KRW donation.

The donation wave continued on the 27th. Koo Ja-yeol, Chairman of LS Group, emphasized unity, saying, "Now is the time for everyone, regardless of country or region, to unite with one heart and work in unison to prevent the spread of COVID-19," and provided an additional 300 million KRW domestically following support in China. Heo Tae-soo, Chairman of GS Group, donated 1 billion KRW, saying, "During this unprecedented COVID-19 crisis, I hope this helps medical staff and victims who are working hard despite difficult circumstances." Since COVID-19 began spreading seriously in Daegu and Gyeongbuk regions, the total support funds provided by major groups have reached approximately 50 billion KRW.

This content was produced with the assistance of AI translation services.