[Inside Chodong] The Golden Time for Nonghyup Reform

In emergency medicine, the term "Golden Time" refers to the critical period in which lives can be saved. This concept of a "golden time" also applies to organizations, representing the decisive window that determines their success or failure. For the reform of the National Agricultural Cooperative Federation (NongHyup), the golden time is until June of this year, when the term of the National Assembly’s Agriculture, Food, Rural Affairs, Oceans, and Fisheries Committee ends. Amendment of the NongHyup Act is necessary to establish an "external independent audit committee" and to introduce a "direct voting system for the election of the central president by cooperative members." However, if a significant number of committee members are replaced with new faces following the reorganization of the 22nd National Assembly’s second half, discussions on the amendment may have to restart from scratch. Ultimately, if the law is not amended by June, the momentum for reform will inevitably weaken.

Since the second half of last year, the government has been preparing the blueprint for NongHyup reform. Starting with the launch of an "anonymous reporting center for NongHyup-related issues" in November last year, a total of 26 people—including 6 outside experts such as lawyers and tax accountants—were mobilized to conduct a special audit of the NongHyup Central Union and the NongHyup Foundation. Subsequently, in addition to the Ministry of Agriculture, Food and Rural Affairs, several other government bodies, including the Office for Government Policy Coordination, the Financial Services Commission, the Financial Supervisory Service, and the Board of Audit and Inspection, participated in a government-wide joint special audit to conduct further investigations.

The audit revealed a series of irregularities within NongHyup. The central president failed to adhere to the overseas business trip lodging expense regulation of $250 per night (approximately 368,000 won), and had customarily held a concurrent position as president of the Nongmin Newspaper, collecting an annual salary and severance pay exceeding 300 million won and about 420 million won, respectively. Additionally, the central union concentrated interest-free funds—provided to local cooperatives without compensation—on those whose presidents were also serving as directors on the central union’s board. The NongHyup Foundation distributed a total of approximately 490 million won to cooperative presidents, members, and staff who had supported the central president’s election campaign.

Although NongHyup had an audit committee and a cooperative audit committee designed to prevent such misconduct, its internal controls were ineffective. There is criticism that the NongHyup audit system functioned merely as a "laundromat for corruption," turning a blind eye to misconduct by the central president and covering up the wrongdoing of local cooperative heads.

The government’s audit led to immediate reform outcomes. Kang Hodong, the president of NongHyup Central Union, reimbursed the problematic overseas business expenses out of his own pocket and decided to step down from his position as president of the Nongmin Newspaper. NongHyup reform has taken its first step.

However, it was only on April 9 that cooperative presidents from agricultural and livestock cooperatives formed an "emergency response committee" and began voicing opposition to the core reform measures. On April 21, they held the "Farmers’ Resolution Rally to Protect NongHyup Autonomy" in Yeouido, demanding the withdrawal of the proposal to establish a new audit body and the suspension of efforts to change the central president’s election system to a direct vote by cooperative members. They claimed that over 96% of cooperative presidents opposed these changes, though the survey did not include general cooperative members.

The emergency committee also stated, "We are not opposed to NongHyup reform itself," acknowledging the necessity of reform. However, they criticized the "unilateral approach that excludes the opinions of those on the ground." In response, the government has decided to hold three briefing sessions for farmers, cooperative members, presidents, and agricultural organizations. They plan to closely review on-site feedback and revise the reform legislation accordingly.

The golden time for NongHyup reform is now less than two months away. If this window is missed, reforms such as the direct election of the NongHyup Central President by cooperative members—the first in 65 years—could come to nothing. It is time to question whether the opposition from some cooperative presidents is simply an attempt to buy time to protect their vested interests, or if it is truly in the interest of NongHyup and the farmers.

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