The National Tax Service has launched a special tax audit into the National Agricultural Cooperative Federation, according to reports on the 29th.
On this day, the 4th Investigation Bureau of the Seoul Regional Tax Service began a special tax audit of the National Agricultural Cooperative Federation headquarters in Jung-gu, Seoul. The National Tax Service is said to be closely reviewing the appropriateness of the federation's accounting treatment and its overall fund management.
The special tax audit is underway as police investigate misconduct by current and former executives, including Chair Kang Ho-dong of the National Agricultural Cooperative Federation. The Anti-Corruption Investigation Unit of the Metropolitan Investigation Division at the Seoul Metropolitan Police Agency is investigating allegations that Kang received more than 100 million won in money and valuables during the election process from partner companies, including affiliates of the National Agricultural Cooperative Federation.
Separately from this case, police are also looking into allegations that employees' attorney fees were paid by the organization, a probe requested by the Ministry of Agriculture, Food and Rural Affairs. After allegations of misconduct related to NongHyup were raised during the National Assembly audit in Oct. last year, the ministry conducted an audit of NongHyup starting in Nov. the same year. Based on the audit results, the ministry asked police to investigate breach of trust allegations that NongHyup employees paid attorney fees for personal criminal cases with company funds.