The Foundation Establishment Committee, which was launched in March 2009 in connection with President Lee’s donation of his personal assets to society, today announced how the funds would be administered. After discussions over the last four months, the Committee has concluded that the funds in the amount of about 33.1 billion won would be used for scholarships for young people.

The property assets to be donated by President Lee include three buildings located in Seocho-dong and Yangjae-dong, two districts in southern Seoul.

The properties were valued at 39.5 billion won by the Korea Appraisal Board, but the funds to be donated reached about 33.1 billion, including savings of 81 million won, because there are deductions of such debts as key money that has to be paid back to those who are leasing the property.

The establishment of the Foundation is expected to be completed by early next month, after which the 12 executives of the foundation, including the head of the Foundation, will begin to work in earnest.

The Committee explained that President Lee hopes that his donation would be able to serve as a small catalyst encouraging donations in Korean society. Chairman Song Jeong-ho of the Committee said that the President’s donation embodies his firm belief that no one should be prevented from learning because of money and that poverty should not be handed down generation after generation. He went on to say that it is imperative for all Koreans to practice the spirit of generosity and responsibility and that is not something that can be practiced only by those with wealth, power, prestige and knowledge.

The President first revealed his intention to donate his assets in his autobiography, There Is No Such Thing as a Myth, published in 1995 when he was a lawmaker. In it, he noted that he would not bequeath his assets to his children. In addition, he once said,“My small fortune does not belong to me alone. The achievement was made possible thanks to the devotion of workers and their families as well as society. What I have so far achieved should be returned to society.”  

Presidential Spokesperson Lee Dong-kwan explained that the President has a firm conviction that it was particularly important to take enough time to make a substantial plan rather than rushing the establishment of the foundation. His personal philosophy that when giving to the needy you should not let “your left hand know what your right hand is doing” has been at play too, the Spokesperson added. He also stressed that the donation of most assets to society by a head of state while in office is unprecedented in the history of politics.

The Foundation was named Cheonggye in Korean, meaning a clean valley. President Lee was given the same pen name by a friend even before he embarked on the Cheonggyecheon Restoration Project.

There were several other suggestions for the name of the Foundation. Candidates under consideration included Taewon, the name of President Lee’s mother; Ilsong, another of President Lee’s pen names and Myungyoon, a combination of the two middle syllables of the Presidential Couple’s names. The final decision was made after consultation  between President Lee and the Committee members.

It has been pointed out, however, that it is difficult for some non-Koreans to pronounce “Cheonggye” and to immediately understand the meaning of the name. Taking this into account, the Foundation is to be named the Lee Myung-bak & Kim Yoon-ok Foundation in English. It will be called the Lee & Kim Foundation for short.

The Committee will tender an application for the establishment of the Foundation early this week to the Office of Education which has jurisdiction over the matter. Upon receiving the application, it is supposed to decide whether to approve or reject the application after completing preliminary and secondary considerations usually within 15 days.

After the approval of the establishment of the Foundation, the following steps need to be taken: assets are transferred to the foundation, the establishment of the foundation is registered and reported to the tax office in charge, the business license is registered and the transfer of the assets is reported to the Office of Education in charge, which concludes the whole process.

After the approval of the establishment of a foundation, it usually takes about three months to finalize the process. This time, however, it is expected to take about a month. Concerning this matter, an official from the Committee noted, “It will be possible for the time needed to be drastically shortened thanks to the great preparation that has already been made.”

With regard to the selection of the beneficiaries and the scope of the scholarships, the board of directors will engage in deliberations in a bid to complete the matter as early as possible in accordance with the internal procedures and principles following the completion of the establishment of the Foundation.

The financial resources of the scholarship program will mainly come from the rent of the real estate donated this time. As of now, the total rent is expected to reach around 90 million won per month, or around 1.1 billion won a year. The amount was calculated without subtracting the operating expenses, and the rent will be subject to slight changes according to the conditions of the real estate market. An official concerned said that the Foundation would consider selling a portion of the properties if there is a shortage of funds.

The following is the list of executives of the Foundation. Lawyer Song Jeong-ho has been appointed the head of the board of directors and nine other members of the board have also been appointed. They include Kim Doh-yeon, President of the University of Ulsan; Kim Seung-yu, Chairman and CEO of the Hana Financial Group; Yu Woo-ik, professor of Seoul National University; Moon Ae-ran, President of Publicis Welcomm; Park Mi-seok, professor of Sukmyung Women’s University; Yu Jang-hee, professor of Ewha Womans University; Lee Sang-soo, laywer; Lee Wang-jae, professor of Seoul National University and Lee Jae-hoo, lawyer. In addition, Kim Chang-dae and Joo Jeong-jung were named as standing auditors.

The Committee held five sessions between March 4 and June 2 and has discussed and decided on the articles of association, the title, the purpose and the composition of the board of directors as well as the appraisal of the properties to be donated. Besides just a couple of comments on the name of the Foundation, President Lee entrusted everything to the Committee.

The Committee said, “We have been engaged in in-depth deliberations over how to administer the donation to better reflect the will of the President. The President wanted the donation this time to be of at least a little help in relieving the burden on the shoulders of ordinary citizens and to make a contribution to promoting a spirit of donation in Korean society.”