Approval of the Amendment to the Enforcement Decree of the Cooperative Basic Act at the Cabinet Meeting
[Asia Economy Reporter Kwangho Lee] In the future, it will be possible to establish a 'Heterogeneous Cooperative Federation' in which cooperatives, social cooperatives, consumer life cooperatives, and credit cooperatives participate as mutual members. This lays the foundation for strengthening solidarity and cooperation among cooperatives.
The government announced that at the 48th Cabinet meeting held on the 22nd, it reviewed and approved the amendment to the "Enforcement Decree of the Framework Act on Cooperatives" containing these provisions.
As a requirement for the priority issuance of cooperative shares, management disclosure is mandated, and the debt ratio is regulated to be 200% or less.
As a condition for establishing a Heterogeneous Cooperative Federation, it is stipulated that it must be composed of five or more members from cooperatives and social cooperatives under the Framework Act on Cooperatives, as well as consumer cooperatives or credit cooperatives.
Additionally, considering the realistic period needed for cooperatives to complete management disclosure, the deadline for management disclosure has been rationalized from within 3 months to within 4 months from the end of each fiscal year.
A government official stated, "Through this amendment to the enforcement decree, operational difficulties of cooperatives will be alleviated, and solidarity and cooperation among cooperatives are expected to be strengthened. We plan to continue efforts to activate the new system through revising work guidelines and providing education."
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