Kang Ho-dong, president of the National Agricultural Cooperative Federation, was accused of enjoying excessive benefits, including repeatedly exceeding the lodging cap during overseas trips. The Ministry of Agriculture, Food and Rural Affairs said in interim findings of a special audit of the National Agricultural Cooperative Federation that there were problems across the board with the propriety of public fund execution and internal controls.
According to the interim results of the special audit released on the 8th by the Ministry of Agriculture, Food and Rural Affairs, Kang exceeded the lodging cap on all five of his overseas trips. The excess ranged from at least hundreds of thousands of won to as much as about 1.8 million won per night, with the total excess spending at about 40 million won. Some of the cases involved stays in suites at overseas five-star hotels.
The National Agricultural Cooperative Federation limits lodging expenses during overseas trips to within $250 per day, but allows actual costs in unavoidable cases. In this audit, the Ministry of Agriculture, Food and Rural Affairs noted that "many cases were found where the cap was exceeded without a clear explanation of special reasons."
Kang's use of business promotion expenses also came under audit. The Ministry of Agriculture, Food and Rural Affairs took issue with the National Agricultural Cooperative Federation president's refusal to disclose usage details on the grounds that the business promotion card is managed under the secretary's office name. Under laws on information disclosure by public institutions, the president's business promotion expenses fall under the scope of disclosure, the ministry said.
At the same time, Kang's concurrent role as president of the Nongmin Shinmun, which allows him to receive a separate high salary in addition to the federation president's compensation, drew criticism as an excessive benefit. According to the Ministry of Agriculture, Food and Rural Affairs, Kang receives about 390 million won a year in actual expenses and allowances from the National Agricultural Cooperative Federation, and more than 300 million won annually in salary from the Nongmin Shinmun. The structure under which a separate severance payment or meritorious retirement bonus is paid upon stepping down as president of the Nongmin Shinmun was also included for review.
The Ministry of Agriculture, Food and Rural Affairs is also conducting a legal review of whether the very structure in which the National Agricultural Cooperative Federation president customarily doubles as president of the Nongmin Shinmun is appropriate. The direct award system, which executives have executed without particular restrictions, will also be reexamined for the validity of its criteria and scale. Last year's direct awards totaled about 1.3 billion won, with a significant portion executed by the federation president.