National Agricultural Cooperative Federation Chairman Kang Ho-dong on the 13th issued a public apology and said he would step down as chairman of the Nongmin Shinmun and as chairman of the NongHyup Foundation. The move follows criticism, based on a recent government audit, that the NongHyup chairman, a "part-time honorary position," had engaged in lax management while concurrently serving as chairman of the Nongmin Shinmun and receiving an excessive salary totaling as much as 300 million won. Kang also said he would step back from personnel decisions and overall management at NongHyup and hand authority to the business-dedicated CEO.
Kang on the day apologized to the public at the headquarters building of the National Agricultural Cooperative Federation in Seoul over the interim results of the Ministry of Agriculture, Food and Rural Affairs' special audit of NongHyup. Kang said, "I feel a deep sense of responsibility for failing to meet the expectations of the public and farmers and causing concern, and I sincerely apologize." He added, "I will treat this matter not as a simple crisis response but as a starting point to set straight NongHyup's reason for being and its role."
Kang said he would step down from the posts he has concurrently held since taking office in Mar. 2024—chairman of the Nongmin Shinmun and chairman of the NongHyup Foundation. According to interim audit results the Agriculture Ministry released on the 8th, Kang received 390 million won from the federation last year and more than 300 million won in salary from the Nongmin Shinmun. This prompted criticism that "the National Agricultural Cooperative Federation chairman is a 'part-time honorary position' who does not manage and bears no responsibility even if an incident occurs, yet receives excessive privileges."
By giving up the Nongmin Shinmun chairmanship, Kang is said to have forfeited a severance payment of about 400 million won. The NongHyup Foundation chairmanship does not carry separate salary or severance pay.
Kang said, "I will entrust personnel and overall management to the business-dedicated CEO." The reason the NongHyup Act defines the National Agricultural Cooperative Federation chairman as a "part-time honorary position" was to keep the chair from intervening in management and to limit the role to board chair and external representation. In reality, however, there have been accounts that the National Agricultural Cooperative Federation chairman wields significant influence over overall management.
Kang said, "I will return in full any lodging expenses that exceeded the daily lodging allowance." A ministry audit earlier found that, after taking office, Kang spent more than 40 million won above the per-night cap of $250 during five overseas trips. The most expensive room Kang stayed in was a suite costing 2.22 million won.
On the day, National Agricultural Cooperative Federation Executive Vice President Ji Jun-seop, NongHyup Mutual Finance Institutions CEO Yeo Young-hyeon, and Nongmin Shinmun CEO Kim Jeong-sik also said they would resign.
Meanwhile, Kang has been under police investigation since last year on suspicion of taking a 100 million won bribe. He is also under a travel ban. Police are investigating allegations that Kang, around late 2023 when his bid for National Agricultural Cooperative Federation chairman made him a strong favorite, received 100 million won in two installments from the head of a service contractor that had a transaction relationship with a National Agricultural Cooperative Federation affiliate.