Kang Ho-dong, chairman of the National Agricultural Cooperative Federation, said the group has neither discussed nor pursued moving its headquarters and affiliates out of Seoul, pushing back against speculation raised by some politicians. He left room for change, however, saying the federation would review options in detail if the government formally asks for cooperation.
Appearing before the Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee at the National Assembly in Yeouido, Seoul, on the 16th, Kang responded to a question from Rep. Lee Sang-hwi of the People Power Party about relocation plans. "We have not yet held concrete discussions or drawn up any plan on moving out of Seoul," he said. Nonghyup officials said the Ministry of Land, Infrastructure and Transport, the ministry in charge, has given no advance indication of such a move and has not requested consultations.
Lawmakers also asked about a so-called split-relocation scenario circulating among politicians and local governments. Lee said one option under quiet discussion would send the federation and its agricultural holding arm to Naju in South Jeolla Province (Jeonnam), move NH Financial Group and core financial affiliates including NH Bank, NH Life Insurance and NH Property & Casualty Insurance to Busan, and relocate investment units such as NH Investment & Securities to Jeonju in Jeonbuk State. Kang dismissed the scenario, saying, "I am not aware of any specific discussions," while adding, "If the government presents an official position later, we will draw up various options and review them actively."
At the audit, lawmakers questioned whether including Nonghyup in the government's second round of relocating public institutions out of the capital region is legally and practically sound. Lee stressed that Nonghyup is not a state-funded public institution but an independent cooperative established with capital from farmers, making a unilateral push for relocation inappropriate. The Agricultural Cooperatives Act stipulates that the federation's main office be located in Seoul. Forcing a headquarters move would first require the National Assembly to amend the law.
Concerns were also raised about the enormous cost of relocation and sunk investment. According to Lee's office, Nonghyup has spent about 1.5 trillion won ($1.1 billion) on real estate and other assets to secure a foothold and strengthen its financial competitiveness in Seoul. On top of that, the labor union estimates an additional 250 billion won ($180 million) would be needed to build a new headquarters and create living conditions for staff in the new location. Combining the existing investment with the new relocation costs brings the total to roughly 1.75 trillion won ($1.3 billion).
Some also argued that the policy would do little for balanced regional development relative to its cost. Of about 96,000 employees across the Nonghyup group, some 70,000, or 73%, already work outside the greater Seoul area. Among the 1,167 staff at the federation's Seoul headquarters, only about 460, or 39.4%, could actually be sent to another region once essential personnel who must remain are excluded.
Financial industry observers say that once the government's basic plan for the second round of public institution relocations takes shape, Nonghyup could become the next focus of competition among local governments and of labor-management conflict, following the Korea Development Bank.