A debate erupted during a parliamentary audit over reform measures for the National Agricultural Cooperative Federation, including how its chairman is chosen and the independence of its audit body. Lawmakers raised concerns that expanding the chairman election to a direct vote by all cooperative members requires consideration of the group's decision-making structure and legal consistency. The audit also reviewed the status of investigations into alleged wrongdoing at the cooperative and performance in converting unused NH points into local currency.

The National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee on Oct. 16 held an audit of the National Agricultural Cooperative Federation, NH NongHyup Economic Holdings, NH NongHyup Financial Group, NH NongHyup Bank, NH NongHyup Life Insurance and NH NongHyup Property & Casualty Insurance.

Chairman election expansion sparks clash; "have not received a report of agreement"

Kang Seung-kyu (강승규), a lawmaker from the People Power Party, raised three key issues in NH reform, including how the federation elects its chairman, the independence of the audit body and improvements to the personnel recommendation system. He questioned whether the reform plan was appropriate.

He argued that any plan to expand the chairman election from the current direct vote by heads of member cooperatives to a direct vote by all cooperative members should take into account the federation's organizational structure and legal consistency.

Kang stressed that the federation is a cooperative whose members are regional agricultural cooperatives rather than individual farmers. He said expanding the voting right of existing members who elect the chairman to all cooperative members would affect current members' voting rights and representation, and requires sufficient discussion.

"The chairman was elected by members, so did the members agree?" Kang asked. "How can the chairman agree to that alone?"

Kang Ho-dong (강호동), chairman of the National Agricultural Cooperative Federation, said he did not make the decision alone. He said an emergency committee was formed to discuss NH reform.

Kang Seung-kyu said it was not appropriate to consent to changing the chairman election method based only on discussions by an emergency body. He said granting voting rights to individual cooperative members who are not members of the federation also requires a review of legal consistency.

Questions also continued over whether the government, the ruling party and the federation had reached an agreement on the direction of revisions to the Agricultural Cooperatives Act.

Kang Seung-kyu said he had heard that a broad agreement was reached on Sept. 22 on the Agricultural Cooperatives Act reform plan. He asked whether the federation had in fact agreed with the government and the ruling party.

Kang Ho-dong replied, "I have not received a report that there was an agreement."

With the federation stating it will accept introducing a direct vote by all cooperative members, controversy is expected to continue over details of the reform plan and decision-making procedures.

Call for probe updates on alleged NH misconduct; internal controls also reviewed

Lawmakers also demanded the submission of 자료 related to alleged internal wrongdoing at the federation.

Yoon Jun-byeong (윤준병), a lawmaker from the Democratic Party, demanded submission of the progress of 14 investigations linked to a joint government special audit.

The requested items included allegations of buying thank-you gifts linked to the chairman election and embezzlement, creating slush funds through fictitious transactions, the chairman receiving a golden key, and allegations involving the execution of funds and purchases by the NH Foundation.

Allegations were also raised over ad spending aimed at blocking articles related to wrongdoing in the chairman election, the NH Foundation's purchases of commercial paper, and irregularities involving negotiated contracts for services.

Yoon demanded submission of the federation's advertising spending by media outlet since 2023, the progress of investigations into each case, and whether the federation had filed objections.

He also asked to confirm whether Kang Ho-dong's May 21 announcement to accept a direct vote by all cooperative members was the federation's official position. He demanded a response to opposition claims that the decision was aimed at dispersing judicial risks and pressure for resignation.

Unused NH points total 244.5 billion won; only 2.6 billion won converted to local currency

Plans to return unused points to the local economy were also discussed during the audit.

Kim Seong-beom (김성범), a Democratic Party lawmaker, said unused NH points total about 244.5 billion won but conversions into local currency amount to only about 2.6 billion won.

"Compared with 240 billion won, 2.6 billion won is a very disappointing result," Kim said. He said institutional obstacles should be removed and conversions into local currency should be activated.

He urged the federation and NH NongHyup Bank to actively consult related ministries and local currency issuers so that point holders can make practical use of their accumulated balances.

Kang Ho-dong replied, "We will actively review and implement it in a direction that can help the public."

Separately, Lee Chan-woo (이찬우), chairman of NH NongHyup Financial Group, did not attend the audit, citing attendance at the International Monetary Fund's annual meetings. In response, Seo Sam-seok (서삼석), the committee chairman, said, "I don't know why such a meeting was held at this time."