[비즈한국] Recently, voices calling for the resignation of Nonghyup (NACF) Chairman Kang Ho-dong have emerged following various allegations of corruption unearthed during a special government audit. Farmers are also continuously voicing criticism against Chairman Kang. However, Chairman Kang has stated he will not resign and will instead embark on a reform of the Nonghyup. Attention is focused on whether Chairman Kang's reform can lead to the restoration of trust in the Nonghyup.
The government announced the results of the special Nonghyup audit on March 9. The government stated, "This audit confirmed that illegal acts, abuse of power, preferential loans and contracts, and lax budget execution by core Nonghyup executives are widespread, and this is not unrelated to malfunctioning internal control mechanisms and an election system vulnerable to bribery." They added, "We plan to request investigations into 14 cases with significant potential for illegality and prepare institutional improvement plans for 96 cases (tentative) to ensure that the pointed-out issues are corrected."
The 14 cases referred for investigation include charges that Chairman Kang Ho-dong and core executives embezzled and personally misappropriated Nonghyup funds, preferential loans and private contracts with high potential for illegality, and window-dressing accounting by member cooperatives to cover up insolvency. The Nonghyup responded, "We will humbly accept the audit results and improve the system regarding the pointed-out issues," adding, "We will work to prevent the recurrence of similar cases and strive to restore the trust of farmers and the public by strengthening transparency and responsibility throughout the organization." (Related article: "Corruption is rampant from the Nonghyup Chairman to local cooperatives," the ripple effect of the government's special audit results).
Following the government's announcement of the audit results, criticism of Chairman Kang Ho-dong has continued. Some are calling for his resignation. On March 11, during a plenary session of the National Assembly's Agriculture, Food, Rural Affairs, Oceans, and Fisheries Committee, Progressive Party lawmaker Jeon Jong-deok asked, "If you are going to reform with a mindset of 'breaking bones and crushing the body' (total dedication), you should resign and step down. You should resign and face the investigation fairly; do you have any intention to do so?" To this, Chairman Kang Ho-dong replied, "I cannot fully agree." He refused to step down from his position.
Chairman Kang Ho-dong's refusal to resign led to backlash from farmers. The Korean Peasants League held a press conference in front of the Blue House on the 16th and demanded the dismissal of Chairman Kang Ho-dong. In fact, negative public opinion about Chairman Kang existed even before the audit announcement. Woo Jin-ha, head of the NH Nonghyup branch of the Korean Financial Industry Union, held a press conference last February and criticized, "The start of Nonghyup reform must be the resignation of Chairman Kang Ho-dong," adding, "We cannot discuss reform while leaving the core of the corruption in the Nonghyup."
Lee Jin-gu, vice chairman of the Korean Peasants League, also pointed out at the time, "Farmers' opinions were not substantially reflected in the election and operation process of the Nonghyup Chairman, and the structure where power is concentrated in the Chairman has been maintained," and added, "In this structure, the Nonghyup has transformed from an organization representing farmers into an organization that reigns over them."
Political circles are also putting pressure on Chairman Kang Ho-dong. Democratic Party lawmaker Yoon Joon-byeong said on social media (SNS), "Farmers are infuriated when they see the various corruptions of the Nonghyup revealed by the government's special audit results," and added, "A cooperative whose purpose is the mutual benefit of many members has no value if it loses trust. That is why a complete transformation is necessary."
The government has not yet issued an official position on Chairman Kang Ho-dong's status. For Chairman Kang, it is difficult to simply ignore the continuous criticism from the political and labor sectors. The Nonghyup also appears to be conscious of public opinion, such as by announcing its own reform plan. Nevertheless, the criticism against Chairman Kang shows no signs of subsiding.
Chairman Kang Ho-dong cannot be forced to resign. However, there is a variable. The Ministry of Agriculture, Food and Rural Affairs announced a plan to promote Nonghyup reform on the 11th. The Ministry stated, "We will mandate criminal charges for illegal acts by executives and employees, and strengthen accountability by establishing grounds for suspension of duty upon conviction for bribery, embezzlement, etc.," adding, "We will create a legal basis to suspend the duties of executives and employees of the Nonghyup upon conviction (including first trial) for bribery or embezzlement." Once the bill is enacted, if a conviction is confirmed in a case reported by the government, the institutional basis to pressure Chairman Kang's position will be in place.
Chairman Kang Ho-dong is continuing his management activities amidst the chaotic situation, such as attending the opening ceremony of the Haman Nonghyup rice seedling facility in Gyeongsangnam-do on the 16th. He means to restore trust through the Nonghyup's reform efforts. In his work report at the plenary session of the National Assembly's Agriculture, Food, Rural Affairs, Oceans, and Fisheries Committee on the 11th, Chairman Kang said, "I will use this as an opportunity for a complete transformation to rebuild the Nonghyup from its roots," and "I will definitely restore the public's trust through bone-deep reforms." Attention is focused on whether the Nonghyup will be able to restore trust as Chairman Kang said.