The main building of the National Agricultural Cooperative Federation [NACF]
The main building of the National Agricultural Cooperative Federation [NACF]

The National Agricultural Cooperative Federation, known as Nonghyup, is embarking on a sweeping organizational overhaul aimed at strengthening support for farmers, committing 220 billion won ($144 million) to a management stabilization project as it restructures into a farmer- and member-centered organization.

The federation announced Wednesday that it had finalized a transformation plan and would begin pursuing 16 concrete reform tasks.

The plan focuses on early implementation of recommendations from the Nonghyup Reform Committee and on revitalizing commercial operations to reorient the organization around farmers and cooperative members. The tasks are organized under two pillars: reforming central federation operations and strengthening support capacity for farmers.

On the operational side, the federation will bolster the independence of its audit body and establish a pan-Nonghyup compliance committee composed primarily of outside members to improve transparency and management accountability. Personnel reforms — including restrictions on rehiring retired executives — and efforts to turn around loss-making affiliates will also move forward.

Farmer support will be expanded through the 220 billion won "Cheer Up! Our Agriculture" project, which aims to ease the burden of production costs, retail distribution expenses and financing to stabilize farm household management.

Programs to help young farmers establish themselves and to provide care services for elderly farmers will also be expanded. Working in tandem with government agricultural policy, the federation will promote the spread of a solar pension scheme and expand access to affordable smart farms. It will also push for wider adoption of smart agricultural produce distribution centers and introduce AI slaughtering robots to strengthen the digital farming infrastructure.

In addition, the federation plans to write off or reduce long-term delinquent bonds totaling 887.6 billion won to support vulnerable groups. Linked to the government's balanced national development policy known as "5 Poles, 3 Special Zones," a financial support hub for regionally specialized projects — tentatively named the NH Financial Hub — is set to open in the North Jeolla region in the third quarter of this year.

"This transformation is a practical strategy to implement the Reform Committee's recommendations ahead of schedule and to proactively respond to society's calls for change and innovation," a federation official said. "We will push forward the 16 reform tasks with urgency and reinvent Nonghyup as a reliable pillar for farmers and cooperative members."


adastra@heraldcorp.com