Party and Government to Complete NongHyup Reform Before June 3 Local Elections... Plan to Establish NongHyup Audit Committee

Yoon Junbyung, Chairman of the Democratic Party of Korea’s Agriculture, Oceans, and Fisheries Policy Coordination Committee, announced on the 11th, "We will prioritize legislation on tasks such as strengthening internal controls and expanding operational transparency for Agricultural Cooperative reform." He added, "We are pushing forward with the timeline to complete the legislation before the June 3 local elections."

After the Party-Government Consultative Meeting on Agricultural Cooperative Reform held at the National Assembly Members' Office Building on the morning of the same day, Chairman Yoon told reporters, "We will submit bills today to enhance internal transparency and other aspects, while the bill on the election system for the head of the central federation will be submitted next week after further discussion."

Hanjongae, Policy Chief of the Democratic Party of Korea, is giving an opening remark at the Party-Government Consultative Meeting on Agricultural Cooperative Reform held at the National Assembly Members' Office Building in Yeouido, Seoul, on the 11th. Photo by Kim Hyunmin

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The party and government plan to establish a 'National Agricultural Cooperative Audit Committee' (tentative name) to build a robust internal control system across the entire cooperative organization. Chairman Yoon explained, "The audit functions for the central federation, holding company, and subsidiaries will be separated into an independent legal entity to ensure independent audits." He further explained, "The Agricultural Cooperative Audit Committee will be composed of seven members, with the chairperson appointed by the president and the members recommended by institutions such as the Ministry of Agriculture, Food and Rural Affairs and the Financial Services Commission."

He also stated, "Measures to prevent unfair influence by the head of the central federation will be introduced," adding, "We have agreed to prohibit concurrent posts such as serving as president of the Nongmin Newspaper Company or holding other positions."

Yoon emphasized, "The party and government have decided to swiftly prepare a reform plan for the election system to expand member participation in the election of the head of the central federation and to reduce incentives for cash-for-votes elections." He added, "We will strengthen criminal penalties and fines for cash-for-votes elections and introduce an increased reward system for those who voluntarily report or cooperate with investigations."

Previously, the government conducted a joint special audit of the Agricultural Cooperative and referred Chairman Kang Ho-dong of the central federation, along with other executives, to the police for investigation on charges of embezzlement and bribery.

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