Lee condemns widespread corruption at Nonghyup

By Yoo Cheong-mo
SEOUL, Dec. 4 (Yonhap) -- President Lee Myung-bak indicated on Thursday that he
is determined to overhaul the management of the state-run National Agricultural
Cooperative Federation, or Nonghyup, accusing its top executives of playing
politics for their own self-interest.
Nonghyup has recently made headlines with former chairman Chung Dae-kun and other
high-level officials accused of pocketing billions of won in exchange for buying
a near-bankrupt securities company at an inflated price and selling a financially
healthy chemical-manufacturing affiliate at a below-market price.
The influence-peddling scandal has drawn national attention, as the elder brother
of former President Roh Moo-hyun allegedly took huge bribes for helping broker
the controversial securities deal.
"Nonghyup has earned trillions of won every year through its banking and other
businesses. The money was supposed to be returned to farmers. But Nonghyup
executives have been found to be deeply involved in various scandals," Lee said
while meeting with local farmers at a Seoul agro-fisheries market.
"Nonghyup should have abstained from politics. Its managers were supposed to have
devoted themselves to the welfare of farmers. But they instead have played
politics and taken care of their self-interest, even while the farmers were
dying," he said.
Earlier this week, the president declared his intention to hasten the downsizing
of state-run corporations that have been accused of inefficient management and
wasteful spending.
Nonghyup, originally set up to serve the interest of local farmers, has massively
diversified over the past decades into farm product supply, processing, marketing
and even commercial banking services through its more than 4,000 branches
nationwide.
Starting in the late 1980s, Nonghyup's chairman has been directly elected by
representatives of its 2.4 million members under its bid to gain more managerial
independence from the government.
"If Nonghyup's financial services earnings are properly spent, farmers will be
able to lease agricultural machines at low costs, instead of buying them. Then
the farmers can become free of debts and worry," said Lee.
"Nonghyup can afford to suffer losses in the machinery leasing business. But all
its chairmen have done absurd things and committed illegalities."
Chung resigned as Nonghyup chairman in November last year after being indicted of
receiving 300 million won (US$207,000) in bribes from Hyundai Motor in return for
selling properties in southern Seoul to the automaker at a below-market price in
2005.
Chung is now under investigation for taking a bribe of about 5 billion won in the
process of Nonghyup's takeover of Sejong Securities Co. in 2006 and paying some
of the money to domestic politicians in kickbacks, according to prosecutors.
ycm@yna.co.kr
(END)