Hyundai Motor Co. announced that Chung Mong-koo, chairman of the Hyundai-Kia Motor Group, has pledged a donation of nearly a half-billion dollars for the poor in South Korea. This donation is believed to be a part of the reparation gift in 2006 related to an embezzlement scandal.
In a release, Hyundai said that the recipient of this donation is the Haevichi Social Contribution Culture Foundation, a group that offers educational opportunities to children from poor families.
In 2007, Chung established the group in 2007 with a 150 billion won ($92.9 million) donation. This is the biggest largest personal charitable donation in the country's history.
This gift takes on the form of the personal shares that arrive in the form of the chairman's personal shares in Hyundai Glovis, the logistics subsidiary of Hyundai Motor. The automaker has yet to confirm though if the latest offering is a part of Chung's 2006 pledge to give 1 trillion won ($930 million) back to society over the next several years.
However, South Korea media said that it is the next installment toward its target. Chung said that the donation was given as the result of the automaker figuring in an embezzlement scandal.
The arrest was made in 2006. He was later found guilty the next year for taking about 100 billion won ($92.8 million) in company money to make a slush fund to get political favors.
A three-year suspended sentence was later announced. Instead of jail time, Chung did community service. In 2008, he was given a pardon from South Korea's president.