'Kim Jang-hoon law' sought to boost donations

By Kim Tae-jong

The ruling Grand National Party (GNP) is promoting a bill to acknowledge people who donate a large amount of money to support good causes to attract more donations, the party's policy committee chairman said Thursday.

Advertisement

"It's part of our efforts to thank donors and provide them with practical help", Rep. Lee Ju-young told The Korea Times. "Hopefully, it will lead more people to make meaningful donations to worthwhile causes".

The bill aims to encourage more donations from the private sector, especially from individuals, he said. "Donations from individuals are much less than those from conglomerates", Lee said.

Dubbed the "Kim Jang-hoon Law", named after the popular singer who is well-known for making large-scale donations to help the needy, the new bill would provide financial support to those who face financial hardships after making their donations.

Kim, known as "an angel of donation", has donated over 10 billion won over the past 10 years but he lives in a rented flat.

According to the proposed bill, those who donate over 3 billion won will be designated an "honorary contributor" and provided with a pension as well as support for medical treatment, basic living and funeral expenses.

"Honorary donors", those who are over 60 years old and whose personal wealth is below 100 million won, will be entitled to state subsidies.

"Such benefits will be given because donors can unexpectedly face financial difficulties after retirement. We also think to come up with supportive measures for the bereaved family members of deceased donors in similar circumstances", Lee said.

Lawmakers also discussed whether they should include those who donated over 1 billion won to provide them likewise, he added.

The GNP lawmakers will first meet during a regular session next week to discuss more details, Lee said.

Along with the law, lawmakers will also address other related issues such as taxation on donors to prevent them from experiencing disadvantages after contribution.

"For example, donors sometimes have to pay a gift tax imposed on monetary donations. We don't want such a thing to happen to them as it can discourage people from donating", Lee said.