Rep. Han Jeoung-ae, third from right, chair of the National Assembly's policy committee, poses with other participants to discuss reform measures for NongHyup, the country's agricultural cooperative and banking group, at the National Assembly in Seoul, Wednesday. Yonhap
The ruling Democratic Party Korea (DPK) and the government on Wednesday announced reform measures to overhaul NongHyup, the country's agricultural cooperative and banking group, following a series of corruption scandals.
The move comes nearly a month after a special audit of NongHyup, or the National Agricultural Cooperative Federation, revealed various irregularities within the group, including possible embezzlement of public funds, preferential loan agreements and accounting fraud.
DPK lawmakers and government officials discussed the reform measures during their consultations at the National Assembly, Rep. Yoon Joon-byeong told reporters after the meeting.
Under the plan, a new audit committee will be formed to conduct oversight of the group.
The reform plan also calls for improving transparency by prohibiting the group's chairman from exercising undue influence over personnel and management, and establishing the legal grounds to suspend employees convicted of crimes such as bribery or embezzlement.
The DPK and the government seek to complete the legislative process before the June 3 local elections.
NongHyup Chairman Kang Ho-dong allegedly embezzled the funds of an affiliated foundation in 2024 and 2025 with the help of one of its senior officials to procure 490 million won ($327,000) worth of gifts for people who helped his election as chairman.
Kang is also suspected of accepting a gold key from member cooperative chiefs to mark his first year in office in a possible violation of the Improper Solicitation and Graft Act.
Source: Korea Times News
