South Korea has seen its first charitable donation made through a private equity fund testamentary trust, marking a new form of asset-based giving that advocates say broadens the scope of social contribution.
The Community Chest of Korea announced Tuesday that Kwon Jun-ha, chairman of Shin Iksan Freight Terminal, has pledged about 800 million won ($559,000) through a private equity fund testamentary trust arrangement and joined Honor Society O-Plus, the organization's club for ultra-high-value donors.
The signing ceremony was held Monday at the Community Chest of Korea's Hall of Fame in Jung-gu, Seoul, attended by Kwon and his wife Jo Gang-sun, their family, and Shin Hye-young, secretary general of the Seoul Community Chest of Korea.
The case marks the first private equity fund testamentary trust donation in the Community Chest of Korea's history. Under the arrangement, Kwon entrusts his assets to a financial institution during his lifetime for management, with the Seoul Community Chest of Korea designated as the beneficiary upon his death. Because the assets are not transferred immediately, the donor can continue to receive returns from the fund or use the assets for living expenses — a key advantage of the model.
Kwon has a long record of asset-based giving. In 2013, he and his wife Jo joined the Community Chest of Korea's Honor Society as a couple. In 2022, he donated returns from a 3 billion won private equity fund. In 2022 and 2024, he donated real estate valued at a combined 1.4 billion won.
Kwon's cumulative donations now exceed 13 billion won in principal. His giving has centered on educational and welfare institutions — including Seoul National University, Sookmyung Women's University and Wonkwang University Hospital — as well as his hometown of Iksan. The funds are earmarked to support vulnerable groups including children, youth, women and people with disabilities.
"Just as I have practiced giving through various assets over the years, this testamentary trust is the result of thinking about how to create a sustainable model of donation," Kwon said. "I hope this becomes an opportunity for more people to participate in giving without feeling burdened, through new forms of contribution."
With this pledge, Kwon became the 44th member of Honor Society O-Plus, which is open to donors who have given or pledged 1 billion won or more. The program is a tier within the Community Chest of Korea's Honor Society reserved for individual major donors who have contributed or committed at least that amount.
"Chairman Kwon has led the way with the country's first private equity fund donation and now the Community Chest of Korea's first private equity fund testamentary trust donation, introducing a new culture of asset-based giving to our society," Shin said. "We will manage the funds responsibly and transparently so that his wishes are fully realized for those in need."
terry@heraldcorp.com
