The method for electing the president of the National Agricultural Cooperative will shift from the current system, where only cooperative heads vote, to a direct election involving all members. Additionally, the internal audit body will become an independent entity, and measures will be implemented to limit the influence of executives on personnel and management, marking a significant reform in the cooperative's operations.
The Ministry of Agriculture, Food and Rural Affairs announced on November 11 that the 'Partial Amendment to the Agricultural Cooperative Act' has passed the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee.
This amendment aims to address structural issues within the cooperative, such as recurring bribery in elections, misconduct, and weak internal controls. The details were revised and supplemented through seven rounds of legislative subcommittee reviews and feedback from the field following discussions between the ruling party and the government in March and April.
The most significant change is in the election method for the president. Currently, 1,104 cooperative heads elect the president, but in the future, approximately 1.87 million members, excluding those with dual memberships, will each have one vote.
The new election system will be implemented starting with the next presidential election in 2028. From 2031, it will coincide with the simultaneous elections for cooperative heads, necessitating a reduction in the term of the next president until the 2031 simultaneous elections. The next president, whose term is shortened, will be allowed one additional term.
To prevent the politicization of elections, measures will be established to restrict candidates' party affiliations. Candidates must maintain their membership status and utilize cooperative economic services for a specified period. They cannot be party members from three years prior to the election announcement until the end of their term. For the 2028 election, a one-year standard will apply.
The audit function will also be restructured. The internal audit function will be separated, creating a new non-capital special corporation called the 'Agricultural Cooperative Audit Committee.' This committee will consist of five members: one each recommended by the Ministry of Agriculture, Food and Rural Affairs, the Korean Bar Association, and the Korean Institute of Certified Public Accountants, along with two members recommended by the cooperative.
While the chair of the audit committee will be appointed by the government, the members will elect the chair among themselves. The existing audit organization must be separated within one year of the law's passage, and independent incorporation must be completed within two years.
Members' access to information will also be expanded. The requirements for viewing cooperative accounting books and requesting copies will be relaxed from 100 members or 3% of total members to 30 members or 3% of total members. A new direct request right will also be established for cooperatives with more than 100 members.
Unlawful influence on the personnel and management of subsidiaries by the president and executives will be prohibited. The president's concurrent positions related to their duties will be limited, and the re-election of cooperative directors and auditors will be restricted to two terms.
The amendment will now undergo review by the National Assembly's Legislation and Judiciary Committee and the plenary session. The Ministry of Agriculture, Food and Rural Affairs plans to prepare follow-up measures, including the revision of subordinate regulations and bylaws in accordance with the legal amendment.
Minister of Agriculture, Food and Rural Affairs Song Mi-ryung stated, "This amendment enhances the feasibility of the system by reflecting discussions in the National Assembly and feedback from the field while preserving the intent of agricultural cooperative reform. We will strive to strengthen member participation and the cooperative's self-regulatory function, allowing it to transform into a cooperative for farmers and agriculture and rural communities."
* This article has been translated by AI.
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