South Korean companies dedicated nearly 3.5 trillion won to social contributions last year. (Image courtesy of Korea Bizwire)
SEOUL, Dec. 21 (Korea Bizwire) – South Korean companies dedicated nearly 3.5 trillion won to social contributions last year, with a significant focus on supporting vulnerable populations. The Federation of Korean Industries (FKI) recently unveiled its “Social Value Report of Major Companies,” surveying 299 of the top 500 revenue-generating companies in 2022.
The total expenditure on social contributions reached 3.57 trillion won, marking the highest value since the survey’s inception in 1993, with an average per-company spending of 15.3 billion won.
Among the surveyed companies, 63.5% increased their social contribution expenditures, with 39.8% witnessing a surge of 25% or more. Reasons for the increase included a “temporary rise in expenses due to current-year issues like emergency relief and national events” (23.3%), “increased investment in and launch of signature CSR programs” (21.7%), and an “increased need for social support due to the COVID-19 pandemic” (17.5%).
In terms of specific social contribution areas, the majority of funds were directed towards supporting the vulnerable (25.5%); education, schooling, and academia (16.3%); culture and sports (13.6%); and revitalizing the local economy (13.2%).
The FKI’s analysis revealed an increase in social contribution expenditures across all areas except support for the vulnerable, as projects affected by COVID-19 resumed.
FKI identified ‘GRIT’ as a keyword summarizing corporate social contribution trends, encompassing Global support, the Reopening of large-scale projects, and Technology-based contribution initiatives.
Examples included Hyosung’s kindergarten construction project in the mountains of Vietnam (G), Hanwha’s Seoul World Fireworks Festival (R), and SK Telecom’s AI-based care service (IT).
Newly launched social contribution projects for children and youth comprised 29.1% of initiatives in the past two years, followed by environmental programs (27.9%) and community development programs (21.5%).
Out of the 105 companies that responded to the FKI’s detailed survey request, 73.7% had established a dedicated ESG (environmental, social, and governance) department, and 80% of the 260 companies that published sustainability reports employed a double materiality assessment for ESG management strategies, analyzing external environmental and social factors alongside the company’s business activities.
J. S. Shin (js_shin@koreabizwire.com)
