Hyundai Motor launches microfinance organization

SEOUL, Dec. 18 (Yonhap) -- Hyundai-Kia Automotive Group, which has Hyundai Motor
Co. under its wing, launched a microfinance organization on Friday in a move to
join in government efforts to help the underprivileged, group officials said.
South Korea's top six business conglomerates, including Samsung and Hyundai
Motor, signed an agreement last year with the government to provide "microcredit"
financing programs that would give low-income people access to small loans
without having to put up collateral.
The program, modeled on a similar scheme in Bangladesh called the "Grameen Bank,"
is a key part of President Lee Myung-bak's efforts to help those suffering from
the ongoing economic downturn.
"The organization represents a meaningful act of social corporate responsibility
because it will give both opportunity and hope to low-income people," said
Hyundai Motor Vice Chairman Chung Eui-sun, in a statement.
Hyundai Motor and its affiliates plan to set aside 200 billion won (US$169.5
million) to fund the microfinance organization over the next 10 years, according
to the statement.
On Tuesday, Samsung Group became the first conglomerate to open such a
microfinance organization.
(END)