Public Home Shopping, Once Meant to Help Farmers and Fishermen, Reduced to a Dividend Channel for Nonghyup and Suhyup

Amending Articles for "Self-Dividends"... Undermining the Founding Purpose
Nonghyup and Suhyup Shift Double Commission Burden onto Farmers and Fishermen
Moon Kumjoo: "Restore Public Purpose... Transition to Direct Transactions"

Moon Geumjoo, a member of the Democratic Party of Korea.

Public Home Shopping, established to expand market access for farmers, fishermen, and small and medium-sized enterprises, has come under criticism for losing its original public purpose and being transformed into a channel for dividend profits for the National Agricultural Cooperative Federation (Nonghyup) and the National Federation of Fisheries Cooperatives (Suhyup).

Moon Kumjoo, a member of the Democratic Party of Korea representing Goheung, Boseong, Jangheung, and Gangjin in South Jeolla Province, strongly criticized the company during the National Assembly audit on October 24, stating, "Amending the articles of incorporation to nullify the government's approval conditions fundamentally undermines the founding purpose."

When Public Home Shopping was established in 2015, it received government approval on the condition that "operating profits would not be distributed as dividends to shareholders." However, in December 2023, the company unilaterally amended its articles of incorporation to add a "shareholder dividend" provision, resulting in 2.8 billion won in dividends being distributed to shareholders in 2024 alone. The main shareholders are the Korea Small and Medium Business Distribution Center (50%), Nonghyup (45%), and Suhyup (5%).

Moon stated, "It is a reversal of the founding rationale for a public sales platform, created with taxpayer money, to amend its articles and distribute profits to shareholders when it becomes profitable," adding, "The structure of a public institution distributing dividends like a private company must be rectified."

Moon also pointed out that Public Home Shopping is imposing "double commissions" on farmers and fishermen through Nonghyup and Suhyup. While the basic commission rate at Public Home Shopping is 24.2%, Nonghyup and Suhyup take an additional 3% under the pretext of acting as 'public MD (vendors),' resulting in an effective commission rate of 27.2%. This rate is comparable to those charged by private home shopping companies.

Moon criticized, "Public Home Shopping has shifted from helping farmers and fishermen to a structure where intermediaries pocket commissions," and added, "The issue that was pointed out during the National Assembly audit eight years ago is still being neglected."

Moon further urged, "For Public Home Shopping to restore its true public nature, it must abolish indirect distribution through vendors and establish a direct transaction system with farmers and fishermen," and called for "strengthening internal checks and responsible management structures to prevent unilateral amendments to the articles of incorporation from recurring."

This content was produced with the assistance of AI translation services.