[2020 National Audit] Eo Gi-gu: "10 out of 91 Suhyup Cooperatives Are in Capital Erosion"

[Asia Economy Reporter Kwangho Lee] According to data submitted by the National Federation of Fisheries Cooperatives to Eo Gi-gu, a member of the National Assembly's Agriculture, Forestry, Livestock, Food, and Maritime Affairs Committee from the Democratic Party of Korea, as of September this year, 10 out of the total 91 cooperatives were found to be in a state of capital erosion.

Among the 10 cooperatives with capital erosion, 7 were in a partial erosion state, and 3 were in a complete erosion state.

The capital of the 3 cooperatives in complete erosion currently stands at ?14,172 million KRW, and the total erosion scale of the 10 cooperatives reached 46,529 million KRW.

Capital erosion refers to a state where accumulated losses have eroded the originally invested capital, meaning the debts of the cooperative exceed its capital.

Looking at the cooperatives in a state of capital erosion, the total erosion scale as of September this year reached 46,529 million KRW.

Among the 3 cooperatives in complete erosion, Geoje Cooperative had the highest erosion scale at 27,918 million KRW, followed by Gijang Cooperative at 6,477 million KRW, and Chujado Cooperative at 3,082 million KRW.

Assemblyman Eo pointed out, "Cooperatives in a state of capital erosion account for 11% of the total, and the erosion scale reaches 46.5 billion KRW," adding, "Special efforts are needed to normalize cooperative management."

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