The chairman of Nongmin Shinmun has resigned from his position, accepting responsibility and offering a sincere apology. Kang Ho-dong, who also serves as the president of the National Agricultural Cooperative Federation (NACF), announced that he would step down from his dual roles as chairman of Nongmin Shinmun and director of the NACF Foundation. Additionally, he will reimburse 40 million KRW spent on accommodations during overseas business trips that exceeded the set expense limits.
On the 13th, Kang held a public apology during the announcement of the interim results of a special audit by the Ministry of Agriculture, Food and Rural Affairs at the NACF headquarters. He also presented plans for organizational reform and systemic improvements aimed at restoring trust.
In his apology, Kang stated, “I deeply regret and sincerely apologize for not meeting the expectations of the public and farmers and causing concern.” He emphasized that he views this situation not merely as a crisis to be managed but as a starting point to reaffirm the fundamental purpose and role of the cooperative.
He stressed the need for reforms that meet public expectations and pledged to earnestly engage in follow-up procedures and regain trust through substantial innovation.
This public apology by the NACF president is the first in 15 years since the 2011 complete suspension of financial transactions due to a system failure. The NACF plans to clarify the authority and role of the president and implement personnel reforms.
In line with convention, Kang will resign from his additional roles as chairman of Nongmin Shinmun and director of the NACF Foundation. A previous special audit raised concerns about excessive benefits, noting that the NACF president, while concurrently serving as chairman, receives an additional annual salary exceeding 300 million KRW and severance pay amounting to several million KRW.
Other key executives, including Ji Jun-sub, NACF vice president, and the CEOs of related entities, have also expressed their recognition of responsibility and intention to resign. Moving forward, Kang plans to delegate overall management, including personnel matters, to the business-oriented CEOs while focusing on his primary responsibilities of advancing agriculture and rural areas and promoting the rights of farmers.
The NACF intends to take the audit findings seriously and pursue systemic improvements. They plan to proactively address any shortcomings and institutional deficiencies identified during the audit.
Regarding the accommodation allowance of $250 per day for overseas trips, the NACF will adjust the regulation to reflect current price levels and rationalize related systems and procedures. Kang will personally repay the 40 million KRW incurred for staying in five-star hotel suites, exceeding the accommodation limit during five overseas trips.