[2026 Parliamentary Audit] Nonghyup Chairman Kang Ho-dong: "I Agree to Direct Election"... Cautious on External Audit Body

Intense questioning on Nonghyup reform measures at parliamentary audit
"Concerned about autonomy and independence"... "I cannot agree" to calls to resign and face investigation

Kang Ho-dong, chairman of the National Agricultural Cooperative Federation, moves to his seat after handing the oath statement to Committee Chair Seo Sam-seok following his testimony oath at a parliamentary audit of the National Agricultural Cooperative Federation and others at the National Assembly on October 16, 2026. Photo by Yoon Dongju

A heated debate unfolded at the National Assembly over the direction of Nonghyup reform, including changing the method of electing the Nonghyup Central Association chairman to a direct election by cooperative members and establishing an independent external audit body. Nonghyup Central Association Chairman Kang Ho-dong supported introducing a direct election but raised concerns about setting up an external audit body, citing the cooperative’s autonomy and the costs involved. He also rejected calls to resign over the legal risks surrounding him.

At a parliamentary audit by the National Assembly’s Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee on Oct. 16, Chairman Kang answered “I agreed” when People Power Party lawmaker Kang Seung-gyu asked whether he had agreed to introduce a direct election for the Nonghyup Central Association chairman. When Kang Seung-gyu pressed him, asking, “The Central Association has more than 1,100 regional cooperatives as members. Did you get their consent? How could the chairman of the Central Association agree on his own?” Chairman Kang explained that “it was not a decision I made alone,” and that the matter had been discussed by an emergency committee that included around 60 cooperative heads and 18 directors.

He emphasized, however, that safeguards would be needed if a direct election were introduced. If all cooperative members take part in the election for Central Association chairman, the contest could become politicized or be influenced by government intervention, he said, adding that measures such as reimbursing election expenses on a scale comparable to public elections would be necessary.

He took a cautious stance on the government’s plan to establish an independent external audit body. “What concerns me most is the issue of the cooperative’s autonomy and independence,” Chairman Kang said. He also cited an internal estimate that additional costs could reach 100 billion to 150 billion won if the cooperative had to separately secure audit staff and an IT system.

Both the ruling and opposition parties raised concerns about the need to overhaul the oversight system for Nonghyup. Their views diverged, however, on whether creating a new external audit body was the solution. People Power Party lawmaker Kim Yong-tae pointed out that, over the past six years, the Ministry of Agriculture, Food and Rural Affairs had effectively failed to exercise its strong oversight powers under the Agricultural Cooperatives Act, including the authority to revoke resolutions and suspend executives from their duties or suspend operations. His point was that it was questionable to create a separate audit body when the existing oversight powers had not been properly used.

Differences also emerged between the Ministry of Agriculture, Food and Rural Affairs and the Nonghyup Central Association over the direction of reform. When Kang Seung-gyu asked whether the Democratic Party, the ministry and the Central Association had agreed on the reform direction, Chairman Kang replied, “I have not received a report that an agreement was reached.” This differed from an earlier statement by Democratic Party lawmaker Yoon Jun-byeong that the ministry and the Central Association had reached a “broad-based agreement” on key reform issues.

The legal risks facing Chairman Kang personally also came under scrutiny. When Shin Jang-sik of the Rebuilding Korea Party asked, “Are you willing to resign as chairman and face the investigation as a private citizen?” Chairman Kang replied, “I cannot agree with that.”

Shin raised questions about Chairman Kang’s responsibility, citing allegations that the Nonghyup Central Association chairman’s secretariat had purchased gifts worth 240 million won. One secretariat employee has been arrested on suspicion of embezzlement in the course of business in connection with the matter. Denying allegations that he had ordered, colluded in or abetted the gift purchases, Chairman Kang said, “The legal risks involving me have been ongoing for more than a year, and I think they may have opened the way for Nonghyup reform.” He also said he would take responsibility if legal liability were established.

Allegations of interference in personnel matters were also raised. Democratic Party lawmaker Yoon Jun-byeong questioned the process by which former Nonghyup Central Association Executive Director Ji Jun-seop obtained a job at Samjong KPMG, among other matters, and released a related recording. The recording reportedly included a remark to the effect that “the chairman helped make it happen,” referring to the hiring process. Chairman Kang denied interfering in personnel matters.

Financial mismanagement at regional agricultural and livestock cooperatives, which prompted calls for Nonghyup reform, was also discussed. According to data that Democratic Party lawmaker Lee Jae-gwan obtained from the Nonghyup Central Association, the delinquency rate on joint loans by regional agricultural and livestock cooperatives had risen to 17.5%. The number of cooperatives unable to pay dividends rose from eight to 107 over the past five years, while the number of cooperatives operating at a loss increased from three to 76.

This content was produced with the assistance of AI translation services.