Cement Industry Completes Win-Win Model for Local Community Development

The First Successful Case of Voluntary Social Contribution Fund Creation and Operation with Local Communities in Korea

Participants of the Cement Industry Community Contribution Win-Win Cooperation Best Practice Seminar are taking a commemorative photo. In the front row from the left: Inho Han, CEO of Sungshin Cement; Geunsik Jeon, CEO of Hanil Cement and Hanil Hyundai Cement; Hyunjun Lee, Chairman of the Korea Cement Association (currently President of Ssangyong C&E); Taeyoung Eom, Member of the National Assembly; Kyungtae Lim, CEO of Asia Cement and Halla Cement; Jongseok Lee, CEO of Sampyo Cement; Wanki Ahn, Chairman of the Korea Productivity Center. In the back row from the left: Jinhyung Park, Executive Director of Ssangyong C&E; Buyoung Oh, Chairman of the Yeongwol Fund Management Committee; Changgi Lee, Vice Chairman of the Korea Cement Association; Jongtae Kim, Chairman of the Danyang Fund Management Committee; Kyohwa Shim, Chairman of the Gangneung Fund Management Committee; Jongho Lee, Chairman of the Jecheon Fund Management Committee. [Photo by Korea Cement Association]

[Asia Economy Reporter Kim Jong-hwa] "We have strived to provide tangible benefits that allow local communities and residents to directly experience the necessary level of support where they want it."

The cement industry self-assessed its community contribution and win-win cooperation project that has been promoted over the past year in this way. On the 30th of last month, the Korea Cement Association, which includes domestic cement companies as members, and the Central Fund Management Committee, which oversees the social contribution fund voluntarily established by the cement industry, hosted the "Cement Industry Community Contribution Win-Win Cooperation Best Practices Seminar" at the 63 Convention Center in Yeouido, Seoul.

At the seminar, the cement industry reflected on the community contribution and win-win cooperation projects that have been steadily promoted voluntarily over the past year and discussed mid- to long-term strategies for the successful expansion of these projects in the future. Among the regional fund management committees actively operating around cement plants since the end of last year, the seminar featured an excellent case presentation by the Donghae Fund Management Committee and shared Jecheon City's unique waste resource recycling policies, presenting four outstanding community contribution cases. Additionally, through a presentation on Hyundai Steel's ESG strategy-linked social contribution activities, the seminar benchmarked community contribution activities from other industries.

The cement industry agreed in February last year to voluntarily establish an annual social contribution win-win fund of approximately 25 billion KRW to expand communication with local communities and residents where production plants are located and to increase support as needed where desired. To operate the established win-win fund more transparently and effectively, regional fund management committees have been formed and are being operated. This is the first case in Korea where a single industry comprising multiple companies voluntarily establishes and successfully operates a social contribution fund, and it is expected to present a meaningful direction as a positive win-win model between local companies and communities in the future.

Lee Hyun-jun, Chairman of the Korea Cement Association, stated, "We signed a voluntary fund-raising agreement worth about 25 billion KRW annually with local district lawmakers to expand the necessary level of support where local communities and residents want it, providing tangible benefits they can feel." He evaluated, "As a result of mutual respect and active communication and cooperation for transparent and fair fund management through the launch and operation of the Fund Management Committee, we achieved meaningful results by securing internal and external legitimacy early." He added, "I hope that the social contribution projects that the cement industry has promoted for over half a century and the new social contribution projects to be promoted together with the Fund Management Committee will be harmoniously operated so that ultimately they can contribute more to improving the lives of local residents and the development of local communities."

Meanwhile, about 100 people attended the seminar, including Eom Tae-young (Chungbuk Jecheon-Danyang) member of the People Power Party, CEOs of the cement industry and members of the Central Fund Management Committee, regional fund management committee chairpersons, officials from the Ministry of Trade, Industry and Energy, relevant local governments, and employees of cement companies.