At a National Assembly audit on the 28th, lawmakers said the Ministry of Agriculture, Food and Rural Affairs has failed to properly exercise its oversight over the related agency National Agricultural Cooperative Federation. NongHyup handed out gold pins and gold bars to employees, which lawmakers said went beyond a common-sense level of welfare projects. Minister Song Mi-ryung of the Ministry of Agriculture, Food and Rural Affairs said, "We will conduct a full review of the use of business promotion expenses."
People Power Party lawmaker Cho Seung-hwan said at the National Assembly's Agriculture. Food. Rural Affairs. Oceans. and Fisheries Committee audit that "Seoul Jungang NongHyup handed out a 'lucky NongHyup gold pin' and gold bars to employees for Lunar New Year and Chuseok," adding, "It is hard to accept as a welfare project by common sense."
Cho added, "An audit concluded that gold bars worth 3.1 billion won were an 'appropriate execution,'" criticizing, "This means not only NongHyup but also the Agriculture Ministry's oversight system has collapsed." Cho said, "A police investigation is underway, so why can't there be a preemptive measure?" adding, "This is an issue that should consider dissolving the unit cooperative."
The fact that Seoul Jungang NongHyup head Kim Chung-gi pledged in the 2023 nationwide simultaneous cooperative head elections to give every member 15 don of gold and a free overseas tour, prompting a police investigation, also became a flashpoint. After being elected, Kim is known to have given gold bars to members.
Democratic Party of Korea lawmaker Joo Cheol-hyeon said, "If the budget is spent this way, one could face up to 10 years in prison," pointing out, "Nowhere in the list of projects under Article 57 of the NongHyup Act is there a project that provides members with expensive gold items or free overseas trips." Joo said, "The welfare projects specified by law apply only to installing welfare facilities, funeral services, and medical support," stressing, "Gold items and overseas training are clearly illegal and punishable."
Joo said, "If this practice is left unattended, the cooperative head election the year after next will be a mess. Candidates will come out saying they will hand out 1 million won or 2 million won each with cooperative funds," urging, "Prepare a solution quickly and hold those involved accountable."
Minister Song Mi-ryung responded, "I was also startled when I heard about it," adding, "We will conduct a full review of business promotion expense usage and, within the possible scope, impose the maximum sanctions on problematic cooperatives." When Joo again asked for "thorough oversight," Song said, "We will do so."