On the 7th, it was reported that the NongHyup reform task force plans to review measures including abolishing the agricultural support project fee (Nongjibi) that NongHyup Economic Holdings, a subsidiary of the National Agricultural Cooperative Federation, pays to the central body. NongHyup Economic Holdings, which handles businesses such as agricultural product distribution, posted a loss of 35 billion won last year while having to hand over more than 50 billion won to the central body as agricultural support project fees.
The NongHyup reform task force is a public-private joint body launched in Jan. this year under the lead of the Ministry of Agriculture, Food and Rural Affairs. It is preparing measures to address issues such as eradicating vote buying in NongHyup cooperative head elections, strengthening internal controls, and improving operational transparency.
The agricultural support project fee is money that NongHyup Economic Holdings and NongHyup Financial Holdings pay to the National Agricultural Cooperative Federation as brand royalties and cost sharing. The Agricultural Cooperative Act stipulates that up to 3% of sales or operating revenue must be paid. This money is said to be used for supporting farmers, improving rural welfare, and revitalizing distribution projects.
NongHyup Economic Holdings is an organization in charge of agricultural product distribution and the supply of farming materials, and it operates Hanaro Mart. There has been criticism that it is a problem to keep paying the agricultural support project fee when it already supports agriculture and farmers and is operating with borrowings in the trillions of won while in the red. NongHyup Economic Holdings recorded deficits in 2024 (operating loss of 13.6 billion won) and 2025 (operating loss of 35.6 billion won). During the same period, it paid 52.219 billion won and 55.96 billion won, respectively, in agricultural support project fees.
Kim Gi-tae, chairperson of the governance improvement subcommittee of the NongHyup reform task force and director of the Korea Cooperative Research Institute, said, "The governance improvement subcommittee will review a plan to remove the burden of agricultural support project fees from NongHyup Economic Holdings," adding, "After discussions, related details will be included in the second reform plan."
An official at the Ministry of Agriculture, Food and Rural Affairs also said, "Plans such as eliminating NongHyup Economic Holdings' obligation to pay the agricultural support project fee and easing the burden (such as adjusting the payment ratio based on performance) will be discussed together." After discussions, the plan will be included in the second reform package and announced between July and August.