Kang Ho-dong, president of the National Agricultural Cooperative Federation, said he did not know about allegations that NH NongHyup Life's promotional items (hand cream) were used for illegal rebates.
Jeon Jong-deok of The Progressive Party said on Oct. 24 at the National Assembly's Agriculture. Food. Rural Affairs. Oceans. and Fisheries Committee audit that regarding the so-called "hand cream" allegations, "What was the urgent reason for approving a 2 billion won payment on Dec. 31 last year when the goods had not even been delivered?"
In response, Kang said, "I have no idea at all," adding, "I will later receive a detailed explanation from the head of NongHyup Life."
Earlier, on Oct. 21, the Financial Supervisory Service (FSS) began an inspection related to NongHyup Life's private contract for promotional items. On Dec. 31 last year, NongHyup Life ordered 100,000 sets of a three-piece hand cream set under the "Le Doam" brand from NongHyup Hanaro Distribution Samsong Center. The unit price was 20,000 won per set, bringing the total to 2 billion won. Given the large size of the contract, Park Byung-hee, who at the time was vice president and is now the CEO of NH NongHyup Life, was included in the approval line.
However, the hand cream actually delivered to NongHyup Life amounted to only 1 billion won (50,000 units), raising suspicions that the remaining 1 billion won was embezzled. NongHyup Life says it received partial deliveries, citing seasonal factors.