At the National Assembly Agriculture. Food. Rural Affairs. Oceans. and Fisheries Committee audit on the 24th, allegations that National Agricultural Cooperative Federation Chairman Kang Ho-dong accepted money and valuables came under scrutiny.
At the audit venue, even a recording of an acquaintance of a service company representative, containing a claim that money was given to Chairman Kang, was made public. In response, Kang avoided questioning, saying, "I will go to the police and explain."
People Power Party lawmaker Lee Man-hee said at the audit, "Wouldn't the coercive investigation itself by investigative authorities targeting Chairman Kang Ho-dong recently significantly affect the organization's stability and credibility?" and asked, "What is your position?"
Kang said, "Regardless of the reason, I am sincerely sorry and apologize to the public, 2.06 million cooperative members, 120,000 executives and employees, 1,110 cooperative heads, and the respected Commissioners for causing such concern."
◇ Even the location of the money exchange was mentioned… transcript played at the audit
Kang is suspected of receiving about 100 million won in money and valuables from the head of a service company that had a transaction relationship with a NongHyup affiliate during the National Agricultural Cooperative Federation chairman election in Jan. 2024. The Seoul Metropolitan Police Agency's anti-corruption investigation unit is said to have conducted a search and seizure on the 15th at National Agricultural Cooperative Federation offices, including Kang's office.
There were also questions from lawmakers pointing to specific times when Kang allegedly received money and valuables. The Progressive Party lawmaker Jeon Jong-deok asked, "Did you receive 50 million won in a Benz and another 50 million won near Seoul Station in Dec. 2023, totaling 100 million won?" In response, Kang avoided answering, saying, "I will go to the police and explain."
A transcript believed to be from an acquaintance of Lee, the head of a NongHyup service company, also emerged. The transcript that Rep. Jeon made public at the audit included, "I called Kang Ho-dong and said, 'If you received money, why don't you say thank you?' Then Kang Ho-dong said, 'Ah, right, I will contact you, hyungnim,' and then I immediately got a call telling me to meet 00, so I met." Jeon also claimed there was a tip that Kang met the service company head at the Plaza Hotel and attempted to placate him.
In response, the National Agricultural Cooperative Federation said, "It is hearsay audio by a third party who is not the person involved," adding, "We will clarify through a police investigation."
Jeon said, "There are also allegations that Chairman Kang Ho-dong received 20 million won in money and valuables in 2022, when he was the Yulgok cooperative head," and released a related transcript. He continued, "There are also allegations that Chairman Kang received a gold key worth about 5.6 million won, purchased with membership fees without member consent, as a gift for the first anniversary of his inauguration from the Incheon Regional Cooperative Heads Council, but returned it in July after controversy," keeping up the attack.
◇ Bid notice canceled in a day… "Favoring a service company?"
Democratic Party of Korea lawmaker Lim Mi-ae said, "According to media reports, Chairman Kang Ho-dong is said to have received 100 million won in two installments from the head of a company that provides security and cleaning service for NongHyup Distribution," pointing out that NongHyup Distribution posted a bid notice for security and cleaning on the national procurement system on Oct. 24 last year and then abruptly canceled it the next day.
Lim said there was a tip that the head of the service company known to have provided money and valuables to Chairman Kang sent a text message to Kang after seeing the bid notice, saying, "I have nothing to lose, but you have a lot to protect, Chairman." She added, "If a bid is canceled, it should be re-announced, but without a re-announcement, the company that handed over the money entered into a private contract."
Regarding the bid cancellation at the time, Kang replied, "I learned about it this time." Park Seo-hong, head of NongHyup Economic Holdings, explained the reason for the cancellation, saying, "On the day of the national procurement bid notice, 80 companies bid. It was too many to conduct a review."
People Power Party lawmaker Cho Kyung-tae said, "Money-for-votes elections never cease at NongHyup. In July 2022, a dedicated election management body was launched and a fair election was declared, but coincidentally, the worst money-for-votes election in history occurred in 2023," adding, "NongHyup's moral hazard is getting more serious by the day."
In response, Chairman Kang Ho-dong said, "Internal matters are currently investigating by the police, so it is not appropriate to speak about them here," adding, "I will faithfully cooperate with the police investigation to clearly reveal the causes of this series of events."
◇ NongHyup Life promotional "hand cream" rebate allegations also under scrutiny
There were also allegations that NH NongHyup Life promotional items (hand cream) were used for illegal rebates.
Rep. Jeon Jong-deok, regarding the so-called "hand cream" allegations, asked, "What was the reason for approving a 2 billion won payment on Dec. 31 last year when no delivery had even been received?"
Kang replied, "I have no knowledge of it at all," adding, "I will later receive a full explanation from the head of NongHyup Life."
The Financial Supervisory Service (FSS) launched an inspection on the 21st regarding the private contract for NongHyup Life promotional items. On Dec. 31 last year, NongHyup Life ordered 100,000 sets of three hand creams under the brand "Le Doam." At the time, NongHyup Life signed a private contract with NongHyup Hanaro Distribution Samsong Center, and the Hanaro Distribution Samsong Center subcontracted the hand cream purchase and distribution to companies called AO and Lineplus, and those two companies further subcontracted to a company called Jihyeon Salon. Jihyeon Salon was run by a family member of a NongHyup Life employee.
The unit price of the hand cream was 20,000 won per set, bringing the total to 2 billion won. Because of the large contract size, Park Byung-hee, who was then the vice president of NongHyup Life and is now the NH NongHyup Life head, was included in the approval line.
However, it was reported that only 1 billion won worth (50,000 units) of hand cream was actually delivered to NongHyup Life. This raised suspicions that the remaining 1 billion won was embezzled. NongHyup Life says the items were delivered in installments, considering seasonal factors.