Kang Ho-dong, chairman of the National Agricultural Cooperative Federation, expressed concerns on October 16 about the potential infringement on autonomy and independence regarding the government's push to establish an external audit body for agricultural cooperatives. While he supports the introduction of direct elections for the chairman, he emphasized the need for coverage of election costs. He stated that he would take responsibility if any legal issues arise related to him, but he drew the line at calls for his resignation.
During a National Assembly audit session with the Ministry of Agriculture, Food and Rural Affairs, Kang responded to a question from Kim Yong-tae, a member of the ruling People Power Party, regarding the external audit body, saying, "The most concerning aspect is the autonomy and independence of the agricultural cooperatives."
He noted that there could be additional costs of approximately 100 billion to 150 billion won, adding that separate audit personnel and IT systems would need to be established.
Kang maintained his support for direct elections for the chairman, stating, "I have expressed my hope that election costs equivalent to those of public elections would be covered due to concerns about politicization and government-influenced elections." He added, "If the National Assembly reaches an agreement and completes the procedures, the agricultural cooperatives will fulfill their role accordingly."
Regarding the legal risks surrounding him, Kang remarked, "It seems that the legal risks associated with me have led to reforms within the agricultural cooperatives over the past year." He reiterated that he would take responsibility if any issues arise.
Earlier, a government joint special audit team announced the results of a special audit on agricultural cooperatives in March, referring allegations of embezzlement and bribery involving Kang and other executives to the police for investigation.
Shin Jang-sik, a member of the Justice Innovation Party, questioned whether Kang had directed or colluded in the alleged embezzlement by his secretary and others. Kang responded, "No."
When asked by Shin if he would be willing to resign from the chairmanship and undergo investigation as a private citizen, Kang replied, "I cannot agree to that."
Kang also outlined the cooperative's internal reform measures, stating that he actively supports the direct election of the chairman and has incorporated plans for an independent director system and restrictions on reemployment of retirees into the bylaws.
He presented plans to enhance agricultural productivity and support the management of local agricultural cooperatives. He announced that the government plans to expand the distribution of affordable smart farms to over 2,500 farms this year, following the installation of such farms in 1,600 households by last year.
Kang stated, "We will increase interest-free funds for agricultural cooperatives to 19 trillion won next year and significantly expand merger support funds for struggling cooperatives from the current 40 billion won to 80 billion won."
* This article has been translated by AI.
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