Real Estate Speculation Response Team Investigates Regional Nonghyup Executives for 'Self-Loans Used in Farmland Transactions'

Exterior view of the main building of the National Agricultural Cooperative Federation. (Photo by Nonghyup Central Association)

[Asia Economy Reporter Kim Jin-ho] Financial authorities have identified signs that some executives and employees of the Northern Siheung Nonghyup and Bucheon Livestock Nonghyup, regional agricultural cooperatives in Gyeonggi-do, received 'self-loans' and engaged in real estate speculation, prompting an investigation.

On the 12th, according to the Special Financial Response Team for Real Estate Speculation, the Financial Supervisory Service is proceeding with disciplinary procedures, including requesting explanations from the parties involved, based on the on-site inspections of Northern Siheung Nonghyup and Bucheon Livestock Nonghyup.

The inspection revealed that several executives and employees obtained secured loans under the names of spouses or other third parties to purchase farmland and commercial properties in areas such as Siheung. Some were directly involved in the loan screening process, indicating cases of 'self-loans.' This violates the employee loan regulations outlined in the loan business manual of the National Agricultural Cooperative Federation. A financial authority official explained, "This is a matter that can warrant sanctions."

Northern Siheung Nonghyup and Bucheon Livestock Nonghyup are believed to have engaged in land speculation using information obtained through handling loans for employees of the Korea Land and Housing Corporation (LH). Numerous suspicious loans related to LH employees' speculation in the Gwangmyeong and Siheung new towns were made at these two cooperatives.

However, financial authorities understand that the implicated executives and employees did not directly purchase real estate within the new towns.