[Edaily Reporter YU JIN-HEE ] The biggest topic currently sweeping global capital markets and the business world as a whole is undoubtedly Environmental, Social, and Governance (ESG) management. Countless large corporations are scrambling to improve their ratings by rushing to publish sustainability reports and establishing new corporate social responsibility departments. However, when discussing ESG in the history of South Korean capitalism, there is one unique company that has never merely jumped on the bandwagon but has practiced ESG for 100 years as the very soul of the enterprise. That company is Yuhan(000100).

For Yuhan, corporate social responsibility and transparent corporate governance are not management practices that were recently adopted. They are an identity that was internalized by the late Dr. Yoo Il-han, the company’s founder, when he established the company 100 years ago, and the result of a perpetual “virtuous cycle system” in which the profits generated by the company flow back into society. The dividends and profits generated by Yuhan do not merely serve the private interests of shareholders; rather, they are transformed into the nourishment that cultivates the talent who represent society’s future through the two major pillars of the “Yuhan Foundation” and “Yuhan Academy.”

The Yuhan Foundation’s 57 Years of Steadfast Commitment... Cultivating Compassionate Leaders Beyond Simple Scholarships

Established in 1970, the Yuhan Foundation is the pioneer and a model example of public interest corporations in South Korea, launched after Dr. Yoo Il-han donated his entire personal fortune to society prior to his passing. In 1971, he left a will stipulating not only that he would not pass on management rights to his children but also that all the shares he owned be used for the public good. Building on this foundation, the Yuhan Foundation has steadfastly carried out comprehensive social responsibility activities for over half a century, including scholarship programs, educational support, social welfare initiatives, the Yoo Il-han Award, and disaster relief efforts.

Among these, the “scholarship program” is the cornerstone of the Yuhan Foundation’s activities. The foundation strictly rejects one-time or token scholarship awards. Every year, the Foundation selects hundreds of undergraduate and graduate students nationwide and provides full support—either covering 100% of tuition or providing living expense scholarships—until graduation, enabling them to devote themselves entirely to their studies. Since its establishment, the cumulative number of scholarship recipients who have entered society with the Foundation’s full support has reached over 10,200, and the cumulative amount of support provided to them has exceeded 39 billion won.

This year, as the Foundation marks its 100th anniversary, its generosity has continued uninterrupted. The Foundation selected 158 outstanding undergraduate students this year and covered their full tuition until graduation, among other initiatives, carrying out a large-scale scholarship program totaling 6.5 billion won.

The Yuhan Foundation’s scholarship program pays close attention to marginalized groups who might otherwise fall through the cracks. In addition to general college students, it continuously awards specialized scholarships to North Korean-born students who lost educational opportunities during their escape from North Korea. Furthermore, the Foundation recently established the “Yoo Il-han Scholarship” program to focus on supporting master’s and doctoral students—who will form the backbone of future academic research in South Korea—thereby significantly expanding the scope of its support.

The reason the Yuhan Foundation is so highly respected by the academic community and society at large is not simply due to the scale of its financial support. Won Hee-mok, Chairman of the Yuhan Foundation, asserts, “Yuhan’s scholarships are not merely financial aid or charitable gestures; they are the noble vision left by our founder, Dr. Yoo Il-han, for the future of our society, and a token of trust.” This philosophy embodies the hope that students who grow up receiving these scholarships will not merely remain intellectuals pursuing personal success, but will instead develop into “warm-hearted leaders who benefit the community” by giving back to society the benefits they have received. The foundation has designed a vast “talent circulation system” in which it identifies talent through financial support, and that talent, in turn, amplifies social value and returns it to the community.

Yuhan Academy: Realizing Corporate Philosophy Through a Practice-Oriented Educational Ecosystem

Another pillar of Yuhan Corporation’s “100-Year Plan” is the Yuhan Academy, a school foundation. If Yuhan Corporation’s social responsibility had been limited to indirect support—such as scholarship grants or welfare programs—it would have been difficult for the company to earn the unparalleled recognition it enjoys today. Dr. Yoo Il-han viewed corporate activities themselves as an extension of a vast educational endeavor. Believing that properly educating talent was the very foundation of the nation, he established the Yuhan Academy Foundation in 1962 using his personal funds, thereby giving concrete form to his conviction that education is the key to national salvation.

Today, Yuhan Academy successfully operates “Yuhan Technical High School,” which trains master craftsmen, and “Yuhan University,” a cradle for professional, practice-oriented talent, setting the standard for practice-oriented education in South Korea. Since the early days of South Korea’s industrialization, Yuhan Technical High School has continuously produced the core technical workforce essential to national development, thereby supporting the “Miracle on the Han River.” Yuhan University, which has evolved in step with the changing times, is boldly pursuing innovations centered on practical education—such as artificial intelligence (AI), biotechnology, and convergent technologies—to lead the era of the Fourth Industrial Revolution.

Yuhan Academy’s management philosophy is also rooted in thorough mutual growth and communication. Chairman Choi Sang-hoo of Yuhan Academy has declared, “We will establish a world-class, practice-oriented innovative university through sincere educational innovation and bold investment,” placing communication-based leadership at the forefront. Chairman Choi emphasizes the need to build a “community-based educational ecosystem” in which faculty, staff, students, the local community, and the industry organically collaborate and participate, stating, “Education is not a field that can be driven unilaterally by one or two leaders.”

The essence of education pursued by Yuhan Academy is, ultimately, the educational embodiment of the value emphasized by Dr. Yoo Il-han: “a company that breathes and grows alongside society.” It aims to help students grow into well-rounded individuals who possess not only the practical skills needed for employment but also an honest character and a sense of community that values consideration for others. This is precisely the most valuable outcome of Yuhan Academy’s social contribution to the South Korean education sector.

At the heart of the social values practiced by Yuhan lies the entrepreneurial spirit of Dr. Yoo Il-han, which has not faded with the passage of time but has instead become even more vivid. The fundamental principle—that the profits a company earns through its business must ultimately be used for the public good that nurtured the company—is realized in its most perfect form through the two mutually complementary institutions: the Yuhan Foundation and Yuhan Academy.

While the Yuhan Foundation serves as a shield, removing obstacles for students at risk of losing educational opportunities due to economic hardship or financial inequality, the Yuhan Academy functions as a vast crucible, nurturing the next generation of social assets equipped with creative expertise and sound values. This sophisticated virtuous cycle—in which scholarship recipients from the Foundation grow to become leaders across all sectors of society, and key talents produced by the Yuhan Academy create new innovative value in industrial settings and local communities—is the true reason why Yuhan has maintained the highest level of trust in South Korea for nearly 100 years and is revered as the most ideal textbook for modern ESG management.

Dr. Yoo Il-han’s maxim—“Profits earned by a company must be returned to the society that nurtured it”—remains a solemn guiding principle that permeates all of Yuhan Corporation’s business activities and its philosophy of social contribution to this day. Given Yuhan Corporation’s shareholding structure, the dividends flowing to the public interest foundation—which serves as the major shareholder—are not merely a financial distribution of capital. Rather, it is the most heartfelt form of value investment—healing the most marginalized members of our society and investing in the possibilities of the future. Even at this very moment, as Yuhan Corporation celebrates its 100th anniversary, the profits it generates are creating silent miracles: nurturing new talent, building a safer and healthier community, and paving the way for a more equitable and sustainable future for South Korea.