Hyundai Motor Co. and the Chung Mong-koo Foundation signed an agreement on Tuesday to create 1,500 jobs for youth by fostering a young businesspersons’ establishment of social enterprises.

To attain the goal, the two sides agreed to foster 150 social enterprises for the coming five years, foundation officials said.

The automaker and its foundation said the agreement was their long-term solution to bringing down the unemployment rate among young adults and promote social entrepreneurship in Korea.

The Chung Mong-koo Foundation has been engaged in scholarships and multiple programs in support of socially vulnerable youths since 2007. A social enterprise is a company that aims to return its profit to society.

The foundation, funded by Hyundai Motor chairman Chung Mong-koo, was created last year to support poor students.

Under the agreement, for five years the private foundation plans to select a total of 1,500 applicants from the country’s young social entrepreneur education centers.

The successful candidates will be introduced to the mainstream network of major social enterprises and given related education and further support to start their own social enterprises.

The foundation will also help the selected social entrepreneurs with funding, consulting and entering the market.

The official evaluation period for applications has not yet been specified, but is slated to take place in June, Hyundai Motor Co. said.

By Chung Joo-won (joowonc@heraldcorp.com)