[비즈한국] NACUFOK (National Credit Union Federation of Korea) Chairman Go Young-cheol is embroiled in a controversy over violating the Public Organization Election Act. Allegations have been raised that Chairman Go solicited support before the official campaign period. The election for the NACUFOK Chairman involves board chairpersons from approximately 800 local credit unions nationwide serving as the electoral college. Chairman Go was elected in January of this year, receiving 301 out of 784 total votes (38.39%), and took office on March 1.
The NACUFOK branch of the Korean Financial Industry Union (KFIU) held a ‘Resolution Rally Denouncing Election Law Violations by the NACUFOK Chairman’ at the NACUFOK headquarters on June 10. The union branch explained that the reason for the rally was that they could no longer overlook the allegations of violating the Public Organization Election Act raised during the process of electing Chairman Go Young-cheol.
The union branch stated that they have confirmed circumstances where Chairman Go Young-cheol mobilized specific individuals to solicit support from board chairpersons nationwide outside of the official campaign period, and intervened in the election through phone calls, text messages, and the distribution of campaign materials promoting his achievements. The union branch also raised allegations of patronage, noting that individuals who helped with the campaign were appointed to key positions after Chairman Go's victory.
Shin Ik-dong, head of the NACUFOK union branch, expressed, “This fight was not started because an individual wanted it, but because an organization on the brink and a reckless management team forced the labor union into this position.” He added, “We endured for the sake of organizational stability, but after the election, patronage appointments, unfair organizational management, and work pressure pushing union members to the edge continued.”
Tension surrounding NACUFOK has been increasing since the rally. Not only the NACUFOK branch, but other branches under the KFIU are voicing support for the NACUFOK branch. Furthermore, investigative agencies are looking into the matter. The union branch stated, “We submitted relevant materials (containing circumstances of Chairman Go Young-cheol’s violation of the election law) to judicial authorities, and the complainant investigation was completed on June 2.”
Chairman Go Young-cheol is resisting the allegations raised by the union branch. In a statement distributed to employees, he said, “We will respond firmly to illegal acts such as the spread of false information, defamation, and obstruction of business.” The labor-management conflict appears to be deepening rather than being resolved.
It is known that the police plan to summon Chairman Go soon. The ‘Act on the Entrusted Election of Public Organizations, etc.’ stipulates that “If a person is sentenced to a prison term or a fine of 1 million won or more for committing a crime prescribed in this Act in an entrusted election, their election shall be invalidated.” The Credit Union Act also includes a provision that individuals sentenced to imprisonment without prison labor or heavier punishment cannot serve as executives. If the allegations are proven true, Chairman Go Young-cheol’s election could be invalidated.
NACUFOK carried out a major reshuffle last March, after Chairman Go took office. As the union branch has raised allegations of patronage, significant turmoil is expected regarding personnel matters if the chairman's charges are proven true. If the labor-management conflict expands, the possibility of intervention by financial authorities or the political sector cannot be ruled out. In a similar case, the National Agricultural Cooperative Federation recently faced criticism from the political sphere over internal control issues and eventually announced an innovation plan. Even if Chairman Go Young-cheol is cleared of charges, it seems unlikely that he will easily restore his leadership until the labor-management conflict is resolved.
To date, Chairman Go Young-cheol has not released any statement other than the one distributed to employees. There is currently no sign of the labor-management conflict being resolved. For Chairman Go, this marks a crisis just four months into his term. Whether he overcomes this crisis is expected to have a major impact on his future leadership.