Song Miryung: "NongHyup Has Governance Issues... Necessary Institutional Reforms Will Be Made"

At the January 12 Press Briefing
Individual Misconduct to Face Judicial Action, Structural Issues to Be Addressed Through Institutional Reform
This Year's K-Food Plus Export Target Raised from 15 Billion to 16 Billion Dollars

Song Miryung, Minister of Agriculture, Food and Rural Affairs, stated on January 12, "The government will improve the necessary systems so that the National Agricultural Cooperative Federation (NongHyup) can truly be reborn as a proper cooperative through this opportunity."

At a press briefing held at the Government Complex Sejong on the same day, Minister Song said, "Based on the interim results of the special audit of the National Agricultural Cooperative Federation and the NongHyup Foundation, I believe there are issues with their governance structure."

Song Miryung, Minister of Agriculture, Food and Rural Affairs, is speaking at a press conference held at the Government Complex Sejong on the 12th. Ministry of Agriculture, Food and Rural Affairs

On January 8, the Ministry of Agriculture, Food and Rural Affairs announced the main findings of the special audit, referring two cases of suspected misconduct to the investigative authorities and disclosing 65 major issues related to inappropriate institutional operations.

Minister Song emphasized, "If there are individual cases of misconduct or deviation, judicial judgment can be made as needed. However, the direction of NongHyup reform is to correct the situation where deficiencies in the system itself undermine the cooperative spirit of NongHyup. We will expand the special audit into a pan-government joint audit system and establish a 'NongHyup Reform Task Force' within the ministry to ensure that NongHyup becomes an institution trusted by the public. The government will see the institutional reforms through to completion."

During the briefing, Minister Song also raised this year's export target for K-Food Plus. K-Food Plus includes not only agricultural and food products (K-Food) but also related upstream and downstream industries such as smart farms, agricultural machinery, and veterinary pharmaceuticals. At the end of last year, the ministry had set the 2024 K-Food Plus export target at 15 billion dollars in its 2026 work plan. Minister Song said, "We have reset this year's export target to 16 billion dollars, a 17% increase from last year, which is truly ambitious. To achieve this, the government will make every possible effort, including launching an export planning team, to reach the 16 billion dollar goal."

Last year, K-Food Plus exports (provisional) reached a record high of 13.62 billion dollars, a 5.1% increase from the previous year. Agricultural and food products accounted for 10.41 billion dollars, and agricultural industry products for 3.22 billion dollars, both achieving the highest figures since records began. Agricultural and food exports have shown continuous growth for ten consecutive years since 2015. Notably, exports surpassed 10 billion dollars for the first time, increasing by 4.3% year-on-year. Instant noodles (ramyeon) exceeded 1.5 billion dollars as a single item for the first time, and 11 other categories also set new all-time export records. Ramyeon exports rose by 21.9% year-on-year, reaching a record 1.52 billion dollars. The Ministry of Agriculture, Food and Rural Affairs attributes these achievements to expanded production and the establishment of stable supply chains in response to growing global demand.

Exports of agricultural industry products reached 3.22 billion dollars, an 8.0% increase from the previous year, marking both the highest export volume and growth rate since official statistics began in 2022. Exports increased across major items such as agricultural machinery, pesticides, fertilizers, seeds, and veterinary pharmaceuticals.

Minister Song is determined to focus on structural improvements in the agricultural sector this year. She stated, "We are already working to improve the structures that repeat every (specific) season, that is, restructuring agriculture to respond to climate change. This year, we will work to reform distribution systems and respond to climate change, as well as fundamentally transform the structure of agriculture itself, so that by the end of the year, the public can see tangible results."