[2020 National Audit] "Elite Sports Can't Survive Without Sponsor Companies... Corporate Support Should Be Encouraged"

Major Sports Organizations Receive Sponsorship Funds Around 30-40%
Support Declines Due to Anti-Corporate Sentiment
Kim Yeji, People Power Party Lawmaker, "Government Must Act for Continuous Support and Investment"

Fencing national team training ahead of the Tokyo Summer Olympics
[Image source=Yonhap News]

[Asia Economy Reporter Kim Heung-soon] It has been revealed that many domestic sports organizations, chaired by large corporations such as archery, handball, and fencing, heavily rely on sponsorship funds and other support from their chairman companies. While large corporations have played a crucial role in the growth of elite sports, known as professional sports, there is a growing reluctance to sponsor sports due to anti-corporate sentiment, prompting calls for a change in the government's stance on this issue.

According to data disclosed on the 13th by Kim Ye-ji, a member of the National Assembly's Culture, Sports and Tourism Committee from the People Power Party, received from the Korea Sports Council, among the 14 sports organizations under the Korea Sports Council led by executives from large corporations, five organizations have sponsorship funds accounting for around 30-40% of their total operating funds.

For example, in handball, a major medal sport in international sports competitions, SK, the chairman company last year, provided sponsorship funds of 6.5 billion KRW to the Korea Handball Federation. This accounts for about 45% of the federation's total settlement amount of 14.6 billion KRW. The Korea Archery Association, chaired by Hyundai Motor Group, also received 3.59 billion KRW in sponsorship funds last year, which is about 41% of its settlement amount (8.75 billion KRW). The Korea Modern Pentathlon Federation, chaired by Korea Land and Housing Corporation (sponsorship funds of 1.78 billion KRW), and the Korea Fencing Federation, chaired by SK Telecom (sponsorship funds of 2.35 billion KRW), also had high sponsorship fund ratios of 41.7% and 35.6%, respectively.

Source: Office of Assemblywoman Kim Ye-ji

Over the three years from 2017, the total amount of sponsorship funds paid was highest for the Handball Federation (19.5 billion KRW) and the Archery Association (about 10.8 billion KRW), followed by the Korea Ice Hockey Association (about 6.7 billion KRW), the Fencing Federation (about 6.2 billion KRW), and the Korea Ski Association (6 billion KRW).

Although many sports organizations heavily depend on sponsorship funds from large corporate chairman companies, there is widespread negative perception toward corporate support for sports organizations, and due to controversies inside and outside the sports community, there is a reluctance to take on the role of chairman company. For example, the Korea Skating Union received 1.7 billion KRW each in sponsorship funds from Samsung in 2017 and 2018, but after the PyeongChang Winter Olympics, Samsung withdrew as the chairman company, and the union has been unable to find a new chairman company for over two years.

Assemblywoman Kim pointed out, "Large corporations have played a significant role in the remarkable development of elite sports in our country, and many less popular sports still heavily depend on sponsorship funds," adding, "Support for sports is now at a critical juncture amid anti-corporate sentiment." She urged, "We should not only think about North-South unified teams or joint hosting of international sports events but also consider elite sports, which are losing competitiveness on the world stage, as an important issue. The Ministry of Culture, Sports and Tourism, led by Minister Park Yang-woo, should meet with corporate heads to appeal for continuous support and investment in sports."

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