[2025 Audit] Forestry Cooperative Deficit 'Snowballs'... "Need to Strengthen Self-Sufficiency"

A red flag has been raised regarding the financial soundness of the National Forestry Cooperative Federation. This is due to a recent surge in deficits. There are growing calls for fundamental measures to strengthen its self-sufficiency.

According to data submitted by Assemblyman Eo Gigu of the National Assembly's Agriculture, Food, Rural Affairs, Oceans, and Fisheries Committee (Democratic Party of Korea, Dangjin, South Chungcheong Province) on October 14, the deficit of the National Forestry Cooperative Federation soared from 2 billion won in 2021 to 48.2 billion won last year. Over the past four years, the scale of the deficit has expanded 24-fold.

The number of cooperatives operating at a deficit has also increased. The number of deficit-running cooperatives slightly decreased from 10 in 2021 to 9 in 2022, but then sharply rose to 32 in 2023 and 33 last year.

The number of capital-impaired cooperatives also grew, from 2 in 2021 (1 fully impaired, 1 partially impaired) to 3 last year (1 fully impaired, 2 partially impaired). As of last year, the fully impaired cooperative was located in Gwangju, while the partially impaired cooperatives were in Sacheon and Ulleung.

The situation has hardly improved this year. As of June, 82 out of a total of 142 cooperatives (57.7%) had recorded deficits. The combined deficit of the National Forestry Cooperative Federation in the first half of the year reached 63.1 billion won, already exceeding the total deficit for the entire previous year.

In response, the National Forestry Cooperative Federation emphasized its unique structure, stating, "The National Forestry Cooperative Federation incurs most of its expenses in the first half of the year, while revenues are reflected in the second half."

However, given the ongoing increase in both the number of deficit-running cooperatives and the scale of deficits, experts point out that it is difficult to overlook the warning signs for the federation's financial soundness.

Assemblyman Eo stated, "If the financial crisis of the National Forestry Cooperative Federation becomes prolonged, the ultimate victims will be the cooperative members and forestry workers," adding, "It is urgent to establish fundamental measures to ensure sustainable forest management and to strengthen the self-sufficiency of the federation."