Farm cooperative reform plan to be concluded by Feb.

SEOUL, Dec. 15 (Yonhap) -- A comprehensive plan to revamp South Korea's scandal-plagued farm cooperative will be concluded by February, the co-chair of a committee to reform the 2.4 million-strong organization said Monday.
Kim Wan-bae, an agriculture economics professor at Seoul National University,
said the goal is to review and draw a basic blueprint on the governance structure
of the National Agricultural Cooperative Federation, and outline ways to
streamline the management of frontline, rural cooperatives.
The cooperative, better known as Nonghyup, has witnessed its last three heads go
to jail on corruption charges, with one implicated in a bribery scandal involving
the brother of former President Roh Moo-hyun. It has been under increased flak
for inefficient management and lack of transparency and accountability.
The professor also said talks are underway to plot a course to separate the
financial arm from the farm support operations.
In the past, Nonghyup's leadership has been accused of focusing too much on
building up its financial operations, that currently cover banking and
securities, and neglecting the cooperative's basic role of helping to find
markets for locally raised products.
The financial arm of the cooperative has one of the largest cash reserves in the
country effectively making the cooperative a leading lender.
"Talks on separation will be concluded next month with the conclusion to be drawn
by early February," he said.
Other reform plans include limiting the power of the chairman and selection
process of senior executives and how to raise efficiency of frontline
cooperatives.
While there are differences among the 11 members within the committee there is
consensus that change is needed, Kim said.
The plan drawn by the committee -- made up of representatives from the
government, Nonghyup, the academic community and farmers groups -- is to be
reflected in a revised law governing the nationwide cooperative.
Related to the reform measures, Nonghyup chairman Choi Won-byung issued a formal
statement expressing regret over the uproar caused by the cooperative's
involvement in past scandals and said all necessary steps will be taken to
restore public confidence in the nationwide organization.
yonngong@yna.co.kr
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