Assemblyman Kang Myunggu: "Strict Real Estate Loan Regulations Only for the Public?Thorough Oversight Needed for Public Institutions First"

Korea Agro-Fisheries & Food Trade Corporation Still Violates Government Guidelines, Grants "Emperor Loans" to Employees
Over 16 Billion Won in Loans Exceeding Limits
15.3 Billion Won Provided at Below-Guideline Interest Rates

According to data submitted by Assemblyman Kang Myunggu of Gumi City, Gyeongbuk (Agriculture, Forestry, Livestock and Food Committee, People Power Party), most of the housing loans provided to executives and employees by the Korea Agro-Fisheries & Food Trade Corporation (hereinafter referred to as aT) were found to be in violation of the government's "Guidelines on Public Institution Innovation."

Under these guidelines, when public institutions provide housing loans, the loan limit is set at 70 million won, and the interest rate must be at least equal to the Bank of Korea's "household loan interest rate." Additionally, loans can only be granted to individuals without a home, and only for the purchase of housing units of 85 square meters or less.

However, aT was found to have failed to comply with all of these requirements.

In the past five years (2021-August 2025), aT exceeded the loan limit in the following number of cases: 74 cases in 2021 (7.03 billion won), 33 cases in 2022 (3.02 billion won), 20 cases in 2023 (1.92 billion won), and 29 cases in 2024 (2.79 billion won).

As of August 2025, 13 cases (1.23 billion won) were still in violation of the guidelines. As a result, a total of 169 employees received loans amounting to 16.01 billion won.

The interest rates for these loans were also set below the government guideline standards.

By year, the interest rates were as follows: January 2020, 1.6% (Bank of Korea household loan rate: 3.01%); January 2021, 1.6% (2.64%); January 2022, 3.5% (3.46%); January 2023, 3.5% (5.34%); and January-June 2024, 3.5% (5.04%). In most cases, the rates were lower than the Bank of Korea's household loan rate. As a result, 200 employees received housing loans totaling 15.37 billion won at interest rates below the government standard.

In addition, over the past five years, there were six cases totaling 522 million won where loans were provided to employees who already owned homes or for properties exceeding the 85 square meter limit.

Despite having regulations requiring the establishment of a mortgage on the loaned property, the corporation, for convenience, accepted "guarantee insurance certificates" instead, resulting in loans totaling 18.94 billion won being provided to 245 employees.

Assemblyman Kang Myunggu stated, "While the public is suffering under harsh lending regulations, it is unacceptable for public institutions, which should set an example, to violate guidelines and provide preferential loans to their employees. The government should not apply stricter standards only to the public, but must also thoroughly manage and supervise public institutions to ensure their lending practices comply with the guidelines."

Myunggu Kang, Member of the National Assembly (Gumi City Eul, Gyeongbuk, Agriculture, Forestry, Livestock, and Food Committee, People Power Party) / Photo by Ihwan Kim