MOU signed with South Jeolla-Gwangju Integrated Special City on Thursday
Mayor Min Hyung-bae: 'This is the dignity of a company that grew up in this region'
"It seems citizens are anxiously wondering whether Samsung Electronics or SK Group will come in," said Jung Won-ju, vice chairman of Jungheung Group. "I hope this donation becomes the catalyst that makes those things happen."
Jungheung Group will donate 10 billion won ($7.47 million) to South Jeolla-Gwangju Integrated Special City to support the success of the Honam semiconductor mega-cluster.
The two parties signed an MOU Thursday afternoon at the Gwangju City Hall business room, formalizing the 10 billion won contribution for the southwestern semiconductor project and the retention of outstanding local talent.
The signing ceremony was attended by Jungheung Group Vice Chairman Jung Won-ju, along with Kim Hae-geun, chief executive of Jungheung Engineering & Construction, Lee Kyung-ho, chief executive of Jungheung Construction, Kim Jeong-hun, head of the civil engineering division at Daewoo Engineering & Construction, and Shin Kyung-sik, chief executive of Jungbong Construction. Representing South Jeolla-Gwangju Integrated Special City were Mayor Min Hyung-bae, Youth and Education Director Yun Yeon-hwa, Policy Planning Director Kim Ki-suk, Semiconductor Industry Support Policy Officer Jeon Eun-ok and AI Semiconductor Director Park Jeong-hwan.
Under the agreement, the 10 billion won donation will be paid in annual installments of 2 billion won over five years, from 2027 through 2031.
Returns from the fund will be used first for attracting semiconductor and materials, parts and equipment companies to the region, providing scholarships to outstanding students in semiconductor programs at local high schools and universities, and building semiconductor process and design equipment at universities and specialized research institutions.
The Jungheung name will be attached to the scholarship program, and a representative from Jungheung will serve on the Jungheung Donation Fund Management Committee, which will set the direction for how the fund is used.
South Jeolla-Gwangju Integrated Special City plans to finalize its donation management guidelines this month and launch a fund corporation starting next January, following the enactment of relevant ordinances and articles of incorporation.
Jung, a Gwangju native, decided to make the donation after learning of the semiconductor cluster bid while on an overseas business trip.
"I think I had that feeling from the moment I was flying back after watching the news in Uzbekistan," Jung said. "They say Samsung Electronics and SK Group together will invest 800 trillion won to build semiconductor factories — there could be nothing more meaningful than this."
Jung said he also firmed up his resolve at a semiconductor AI international forum co-hosted by Namdoilbo and The Herald Business, where he was reminded of his late father, Jungheung Group founder Jung Chang-sun.
"My father always carried in his heart the wish to contribute to good things in Gwangju," Jung said. "If this money helps Samsung Electronics and SK Group come here, I think my father would smile in paradise and say, 'Well done, son.'"
Mayor Min noted that the 10 billion won donation came on the 100th day of his administration.
"This is truly the strength and dignity of a company that grew up in this region," Mayor Min said. "I will take special care to ensure this precious intention endures for a long time. We will manage the fund carefully and transparently to nurture local talent and drive industrial growth." He added that he would handle the donation so that "Jungheung's precious intention becomes a force that supports one pillar of South Korea's industrial growth."
sij@heraldcorp.com
