President giving fortune to charity

President Lee Myung-bak said yesterday he is contributing nearly all of his wealth - real estate and savings worth more than 33.1 billion won ($26 million) - to establish a scholarship and welfare foundation.

“What made me feel truly happy was my relationship with the people I have met throughout my life and the achievements I have made at work, not the money I have earned,” Lee said in a statement released by the Blue House yesterday afternoon.

“The fortune I have accumulated throughout my life, through hard work, is still very valuable to me. That’s why I have always thought that it would be fantastic for the wealth to be used for the good of society.”

Lee and his wife, Kim Yoon-ok, will retain 4.9 billion won in wealth, including a house in Nonhyeon-dong, southern Seoul.

Song Jeong-ho, a lawyer who had once served as the justice minister of the Kim Dae-jung administration, has headed a committee to establish the foundation since March. Song said the foundation will be named Cheonggye in Korean, and the Lee Myung-bak and Kim Yoon-ok Foundation in English. It will be launched within a month.

Lee wrote in his autobiography in 1995 about a plan to donate his wealth for social programs. Just 10 days before the presidential election, Lee held a press conference and repeated his pledge to contribute his wealth.

Two buildings in Seocho-dong and a building in Yangjae-dong of southern Seoul as well as some land in Seoul are being donated, Song said. He added that the real estate was worth 39.5 billion won according to the state-run Korea Appraisal Board.

Lee is also donating 81 million won in cash, Song said.

After excluding debt linked to the donated real estate, more than 33.1 billion won will be used for the foundation, which will offer scholarships and other financial support to youngsters in need.

According to Song, the foundation will devote roughly 1 billion won of its financial resources every year to assisting children.

“The income to be generated from monthly rentals of the buildings will be the primary resources,” Song said. “About 1.1 billion won is generated every year. We believe the operation of the foundation will be possible after excluding some management fees.”

Song will chair the foundation, while nine others will join the foundation’s board. Yu Woo-ik, a Seoul National University professor who had worked as Lee’s first presidential chief of staff, is one of the board members.

“Many said the president must rush to establish the foundation, but Lee believed it is more important to make a solid plan by taking enough time,” said Lee Dong-kwan, Blue House spokesman. “It is an unprecedented case in world political history that a nation’s leader has donated most of his wealth to society while he is still in office.”

“Lee’s decision was based on his belief that no one should give up education because of financial hardship, which will only pass down poverty to the next generation,” Song said. “We have to respect his goodwill. I hope Koreans will take the opportunity to reflect upon the meaning of this action.”

In his statement, Lee said, “As I make the decision public, various memories return.” He added this was “probably because a chapter of my life is being closed.”

Expressing appreciation to all people who had helped him throughout his life, particularly in his youth, Lee said he long ago decided to spend his wealth on society, and not merely pass it on to his children.

“The root of my belief is my mother,” Lee said. “I am proud of myself for keeping a promise with my mother.”

In his statement, Lee urged citizens to respect each other. “Not only as the president, but also as a fellow Korean, I earnestly hope that we can build a compassionate society that helps others with love and care. It’s my true wish that Korea at its heart will become a loving society. Without love, material things have no meaning.”

While both ruling and opposition parties welcomed Lee’s decision, the Democrats expressed a hint of negativity.

“It would have not been easy for the president to keep his promise, but he did, so it should be praised as an act of noblesse oblige,” said Democratic Party spokesman, Noh Young-min.

“But it’s hard to understand why he needs to establish a new foundation while there are so many scholarship foundations already in existence,” Noh said. “Lee’s foundation may seek help from conglomerates to maintain its operation. It is likely that the foundation will seek to raise more resources to expand its operation.”

Another DP spokeswoman, Kim Yoo-jung, also said the foundation’s board members are all Lee’s close aides and she was worried about the transparency of management.

By Ser Myo-ja [myoja@joongang.co.kr]