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Kang Ho-dong, chairman of the National Agricultural Cooperative Federation. |
[Alpha Biz= Kim Jisun] The South Korean government has requested a police investigation into Kang Ho-dong and other senior officials of National Agricultural Cooperative Federation over allegations including embezzlement and illegal receipt of gifts.
The findings were announced Monday following a joint special audit conducted by the Office for Government Policy Coordination, Ministry of Agriculture, Food and Rural Affairs, Financial Services Commission and Financial Supervisory Service.
The audit uncovered suspected irregularities including misuse of public funds, preferential loans and accounting manipulation. Authorities plan to refer 14 cases with potential legal violations to police, while ordering NongHyup to implement corrective measures in dozens of other cases.
According to the government, Kang allegedly diverted about 490 million won ($365,000) in foundation funds through a senior official to purchase gifts for cooperative leaders and members who supported him in the federation’s chairman election. He is also suspected of violating South Korea’s anti-graft law after receiving a gold key from cooperative heads to mark the first anniversary of his inauguration.
Investigators also identified cases of preferential lending, irregular procurement practices and accounting manipulation at some member cooperatives. Authorities said the findings revealed broader governance problems, including weak internal controls and excessive executive perks.
The government said it will draw up broader reform measures for NongHyup through a newly established reform task force in the near future.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
