Member of Parliament Jeong Hee-yong: The deficit of Nonghyup Retail has surged approximately 19.4 times over the past five years.

Jeong Hee-yong, a member of the National Assembly [provided by Jeong Hee-yong’s office], reported that as the profitability of Nonghyup Distribution and Nonghyup Hanaro Distribution deteriorates, the financial health of these two major distribution organizations of the Nonghyup needs urgent improvement as the deficit continues to grow. According to audit data received from the National Assembly’s Agriculture, Forestry, Livestock, Food, and Fisheries Committee by People Power Party member Jeong Hee-yong (representing Goryeong, Seongju, Chilgok in North Gyeongsang Province), the revenue of Nonghyup Distribution has decreased by approximately 18% from 1.6488 trillion won in 2019 to 1.3580 trillion won in 2023 over the past five years. During the same period, the net income loss has surged about 19.4 times, from 1.567 billion won to 28.768 billion won. Similarly, Nonghyup Hanaro Distribution has seen a significant increase in deficits due to decreased sales. Its revenue plummeted by about 59% from 3.1195 trillion won in 2019 to 1.2915 trillion won in 2023, with the net income loss soaring approximately 17 times from 1.824 billion won to 30.959 billion won. Consequently, the number of deficit-ridden Nonghyup Hanaro Mart stores has gradually increased over the past five years, with seven stores closing during this period. Representative Jeong Hee-yong commented, “If the trend of declining sales and increasing deficits in Nonghyup Distribution and Nonghyup Hanaro Distribution continues, it could impact the entire financial structure of the Nonghyup Central Association and result in losses for its members. The Nonghyup Central Association should swiftly prepare measures to strengthen financial soundness to address the worsening profitability and growing deficit of these distribution organizations.”