The National Agricultural Cooperative Federation (NH Bank) has revised its merger support system to promote voluntary mergers among regional cooperatives. The new approach increases funding based on the number of cooperatives involved in a merger, aiming to encourage larger-scale consolidations.
According to Yonhap News on July 10, NH Bank has recently updated its 'Merger Basic Fund Support Criteria.' The new system will provide 50 billion won for each cooperative that ceases to exist due to a merger, replacing the previous model that allocated 30 billion won to the surviving cooperative and an additional 10 billion won for each participating cooperative.
Under the revised guidelines, if two cooperatives merge, they will receive 50 billion won; if three cooperatives merge, the support will increase to 100 billion won; and for four cooperatives merging, the total support will reach 150 billion won.
NH Bank plans to expand the support scale as more cooperatives participate in mergers, thereby promoting broader regional consolidations.
Additionally, the limit for special merger funding has been raised from 20 billion won to a maximum of 30 billion won, and the support period has been extended from two years to three years.
To further encourage participation in mergers, the basic contribution for cooperative leaders will increase from 80 million won to 100 million won. The funding for re-voting in case a merger proposal is rejected will also be expanded from one instance to a maximum of two.
* This article has been translated by AI.
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