[2025 Audit] Local Agricultural Cooperatives Criticized for PF Losses and Performance Bonus 'Feast'

As the volume of overdue loans in mutual finance at agricultural cooperatives has doubled in just over a year, it has been revealed that local agricultural cooperatives that received the lowest grade in management evaluations have received performance bonuses amounting to hundreds of billions of won.

Cho Seunghwan, a member of the National Assembly's Agriculture, Forestry, Livestock, Food, and Maritime Affairs Committee from the People Power Party, stated at the parliamentary audit on the morning of October 24, "As of June this year, the total overdue amount in mutual finance at agricultural cooperatives stands at approximately 18 trillion won, nearly doubling from 9.5 trillion won at the end of last year." He further pointed out, "Most of the losses are occurring in real estate project financing, and even though the National Agricultural Cooperative Federation conducts audits, it is questionable whether they are functioning properly. Local agricultural cooperatives are shifting the burden of these losses entirely onto farmers."

Assemblyman Cho also criticized the excessive size of performance bonuses at local agricultural cooperatives. He said, "I understand that local agricultural cooperatives may provide performance bonuses even if they receive low grades in management evaluations, but the problem is that, looking at the actual payments, the figures are shocking to farmers." He added, "From 2021 to last year, agricultural cooperatives that received the lowest grade, grade 5, in management evaluations recorded deficits totaling 100 billion won, yet received approximately 64 billion won in performance bonuses. In similar public institutions, no performance bonuses are given for such grades. I believe the system needs to be changed."

According to data Assemblyman Cho received from the National Agricultural Cooperative Federation, the total performance bonuses paid by local agricultural cooperatives were 1.071969 trillion won in 2021, 1.107254 trillion won in 2022, 1.160861 trillion won in 2023, 1.142545 trillion won last year, and 886.932 billion won as of September this year.

Kang Hodong, Chairman of the National Agricultural Cooperative Federation, is reporting on business affairs at the National Assembly's Agriculture, Forestry, Livestock, Food, and Maritime Affairs Committee's audit of the National Agricultural Cooperative Federation on October 24, 2025. Photo by Kim Hyunmin