Specializing to solve society's most pressing issues

Earlier this year, 9,400 applicants turned in their resumes for job openings at Kolmar Korea, a cosmetic product research and development company. One third of the applicants had certificates proving they had passed the government's test on Korean history, part of the unusual recruitment process practiced by the company.

Over the last 10 years, Kolmar has given additional points to applicants who received the distinction and proved their willingness to learn about Korea's past.

"I took the exam on Korean history to get the job", said 26-year-oldLee Eun-sol, who got accepted by Kolmar Korea in January when an average of 80 people applied for each available job. "However, it was an opportunity to relearn my country's history, which I hadn't thought about recently".

The 1,000 employees and executives refer to their company as the keeper of Korean history, but the company's dedication does not end with the government test.

In June 2013, Kolmar Korea started a campaign project with Sungshin Women's University professor Seo Kyung-duk in trying to get the signatures of 1 million people to keep Korean history as a mandatory subject on the College Scholastic Aptitude Test (CSAT). The campaign was also intended to raise awareness about Korean history and the importance of educating the younger generation. Ten thousand people signed up in just 80 days, and there were 116,762 who supported the movement by the end of the campaign on Aug. 31.

Kolmar Korea Chairman Yoon Dong-han considers keeping the study of Korean history alive to be the company's social responsibility.

"The reason companies produce products and services is to create a better future", said Chairman Yoon "It is an unquestionable responsibility [for a company] to treat history the same as showing gratitude to one's parent".

Many of the top conglomerates in Korea from Samsung to Hyundai Motor cannot seem to improve their public image despite spending numerous social contributions each year. But others, like Kolmar, have kept themselves in high regard by the community with their preference for long-term actions over short-term financial investments.

Another such company is Yuhan Kimberly, founded by the lateYoo Il-han

In 1970, Yoo established the Yuhan Foundation, a public interest organization which has been actively contributing to various social causes since its creation. One of its most well-known contributions is its scholarship program, as Yoo was a strong believer in the importance of education.

Yuhan Kimberly as a company has also been actively involved in giving back to society. For the past 31 years, the company has been running a campaign of planting trees, with over 50 million planted so far.

Major conglomerates in recent years have been noticing the impact that corporate social responsibility has on doing business, and many are trying to take more aggressive action in tackling social issues.

One of today's major social problems is Korea's aging society, and major conglomerates are jumping in to create job opportunities for seniors.

Some that do not hire seniors directly actively invest in social enterprises and small companies that do so. And some even help boost the sales distribution of products manufactured by such companies.

Samsung Life Insurance, the biggest financial arm of Samsung Group, chose contributing to the solution of the low birth rate as its cause. Since 2013, it has been helping 22 joint child-raising facilities created by the local government and residents.

The life insurer has helped remodel the facilities or provided books and toys. They have also been running a child-care consultation and education program over the last five years for families with children under three.

The nation's largest steelmaker Posco has also dedicated resources to the social good.

Since the steelmaker was founded in 1968, it has focused on community education and welfare by establishing 13 educational institutions, ranging from kindergarten to elementary, middle school, high school and college, with Pohang University of Science and Technology (Postech).

Some experts say overregulation is one of the reasons why fewer companies are not more socially responsible.

"The first thing that needs to be fixed is limiting public interest foundations from owning more than a 5 percent stake in companies', said Lee Man-woo, business management professor at Korea University. "Yuhan Foundation uses the dividend that it receives from Yuhan Kimberly as a majority stakeholder and spends it on activities for the public good".

"But since the 5 percent limit exists, businessmen who want to establish something like the Yuhan Foundation won't be able to make enough money to take on big projects".

Some blame the social enterprise legislation that was revised in 2007 for limiting the number of companies dedicated to the public good.

"To get legal benefits [social enterprises] need to spend more than two thirds of their revenue on public projects", said Son Young-hoa, a professor at Inhan University's law school. "For a small company that doesn't have much in reserve, it's impossible to spend that kind of money".

BY JUNG JONG-HOON, LIM JI-SOO [lee.hojeong@joongang.co.kr]