Controversy Over Suhyup's 'Unusual Loans'...What Justified a Credit Loan to Deutsche Motors Involved in Stock Manipulation? [2025 Audit]

Suspicions Surrounding Sarang Jeil Church and Deutsche Motors
Loan Review Opinions Written Before Applications Submitted
Nodongjin, Suhyup Chairman: "I Will Turn the Red Light to Green"

On the 27th, during the National Assembly's Agriculture, Forestry, Livestock, Food, and Maritime Affairs Committee audit, issues such as the soundness of the National Federation of Fisheries Cooperatives and the appropriateness of their loans became controversial. Allegations were raised regarding loans to companies such as Deutsche Motors, which is well-known due to Kim Keonhee's stock price manipulation case, and Sarang Jeil Church.

Lim Mi-ae, a lawmaker from the Democratic Party of Korea, stated during the audit, "There are many unusual loans that undermine the purpose of mutual finance." She continued, "When Sarang Jeil Church, where Pastor Jun Kwanghoon serves, purchased land and buildings in Seokgwan-dong, Seongbuk-gu, Seoul for 6.1 billion won, they needed funds for the remaining payment. Suhyup (the National Federation of Fisheries Cooperatives) lent them the money. In the case of Goseong Suhyup, the loan application was written on June 11 last year, but the loan review opinion, which is the final stage of the loan review, was written on June 10 last year." She pointed out, "It is strange that the loan review opinion was written even before the person requesting the money submitted a loan application."

Nodongjin, Chairman of the National Federation of Fisheries Cooperatives, is preparing to respond during the National Assembly's Agriculture, Forestry, Livestock, Food, and Maritime Affairs Committee's audit of the National Federation of Fisheries Cooperatives held at the National Assembly in Yeouido, Seoul on the 27th. Photo by Yonhap News

She also raised suspicions regarding a credit loan to Deutsche Motors. Lim said, "Suhyup lent 10 billion won to a company that was reeling from a stock price manipulation verdict, based solely on credit and without any collateral." Regarding the loan to Deutsche Motors, Suhyup explained, "We assessed the management risk and determined that the company had sufficient market dominance and status."

However, Lee Wontak, another Democratic Party lawmaker, pointed out that Suhyup's review opinions regarding Deutsche Motors were either identical or lacking in substance. He asked, "Why does Suhyup always shrink in front of Deutsche Motors?" Lee also noted that, based on the expected rate of return, there was no justification for issuing a credit loan.

Lim further criticized, "According to the original purpose of mutual finance, Suhyup is supposed to work not only to improve the economic status of fishermen but also to increase fisheries production. However, mutual finance is now plagued by unusual loans, especially joint loans, resulting in a delinquency rate higher than that of any other mutual finance institution." She added, "The number of cooperatives with a delinquency rate over 10% has increased from 12 to 19, while those with a delinquency rate of 2% or less have decreased from 19 to 12."

In response to the repeated criticism from lawmakers, Nodongjin, Chairman of the National Federation of Fisheries Cooperatives, said, "I will take this very seriously," and added, "We will work to turn the red light into a green light."