Major Enterprises Dedicate Yearly 3.6 Billion Won of Business Profit to Society

The Federation of Korean Industries (FKI) announced on the 7th that domestic major enterprises spend yearly 3.6 billion won for social contribution activities through dedication or providing various social programs.

According to the `Report on the actual social contribution activities` which FKI announced after monitoring 193 member companies and the foundations of 71 companies, these companies’ expenditure for social contribution activities amounted at 706 billion and 60 million won or 3 billion and 658 million won per a company, which increased by 61.7 percent from 2 billion and 263 million won in 1998.

And the FKI added that Korean companies’ ratio of the expenditure for social contribution activities to total sales is 0.37 percent, which is higher than that of Japanese companies (average 0.1 percent) researched by Japanese Federation of Industries in 1999.

Out of the companies surveyed, the companies spent over 0.5 percent of sales on social contribution activities were 8.8 percent (17 companies), and Steel companies dedicated 84.7 billion won per a company, which is the most by businesses.

95 percent of the expenditure for social contribution activities was cash or actual goods, but direct operation of social programs made up only 5 percent.

By the dedication fields, the dedication for education made up 70 percent with 474 billion and 778 million won, and for local development 9.2 percent, and social welfare 5.7 percent.

Dong-Won Kim daviskim@donga.com