Kim Sun-gyo: "Supplying Nonghyup funds to the private equity fund that caused the Homeplus crisis is contrary to the founding purpose of Nonghyup"

The National Agricultural Cooperative Federation and its financial subsidiaries face political criticism over large-scale funding provided to private equity funds and acquisition financing managed by MBK Partners. According to documents Nonghyup submitted to Kim Sun-gyo, a People Power Party lawmaker on the National Assembly Committee for Agriculture, Food, Rural Affairs, Fisheries and Ocean, the total committed amount from 2017 to 2026 reached 2.6643 trillion won. The cumulative executed amount, including reinvestments and re-withdrawals, was 2.6581 trillion won, and the current uncollected balance stood at roughly 913.1 billion won.

Over the past decade, Nonghyup conducted 24 transactions in forms including refinancing and bridge loans. The funds supported Homeplus's asset-based lending (ABL), the acquisitions of Medit and Osstem Implant, and MBK's tender offer for Korea Zinc, which is currently regarded as a national key industry. NH Investment & Securities executed a 1.715 trillion won bridge loan during the Korea Zinc tender offer in September 2024, then deployed an additional 500 billion won for on-exchange purchases, bringing the cumulative bridge loans to 2.215 trillion won. Those funds were fully repaid in May 2025, but a 600 billion won refinancing was carried out the same day, and a second 600 billion won refinancing followed in April 2026, leaving the funds tied up in Korea Zinc M&A financing, according to reports.

Political circles and agricultural and livestock associations argue these transactions conflict with Nonghyup's founding purpose. They cite Homeplus, which MBK acquired through a leveraged buyout using assets as collateral and sold core assets before filing for rehabilitation in March of last year. The collapse led to worker unemployment, closures of partner companies, and delayed payment settlements that damaged the agricultural and livestock sectors. Kim Sun-gyo stated that trillions of won in Nonghyup funds, built from the contributions of farmers and members, should not be supplied to the private equity fund behind the Homeplus crisis, and called for immediate reorganization of private equity investment and loan review criteria across all financial subsidiaries.

Industry experts said that repeated transactions with the same manager across multiple affiliates require stricter scrutiny, including the management performance and competitiveness of previously acquired companies, not only the collateral value of individual loans. A business community official called for governance systems that assess effects on industry, employment, and partner companies beyond financial returns. In a written reply, the National Agricultural Cooperative Federation said it places great importance on national economic impacts in reviewing acquisition financing and will review investment decisions more meticulously and cautiously going forward.