LH fake farmers take their children’s school expenses and Korean beef set on low-interest loans from Nonghyup

◆ LH speculative suspicion overwhelming ◆

The reason why Hong Nam-gi, Deputy Prime Minister of Economy and Minister of Strategy and Finance, ordered an intensive investigation into the loan process of LH employees is because they had specialized information different from those of the general public and enjoyed various privileges. They didn’t get regular bank real estate loans, but instead went to a local nonghyup member who wanted to buy the land to raise money. So, it turned out that they were taking advantage of not only interest rate benefits, but also various profits such as dividends and holiday gifts worth millions of won every year.

According to NH Nonghyup on the 12th, 13 LH employees who are suspected of speculation borrowed a total of 5.8 billion won from North Siheung Nonghyup. The total transaction amount including the loan amount reaches 10 billion won. LH employees registered as members of the nonghyup in order to receive benefits from the North Siheung Nonghyup. In order to receive a farmland mortgage loan from the Nonghyup, you have to register as a member of the relevant Nonghyup, and you have gone through this process for speculation.

In order to become a member of the Agricultural Cooperatives, registration of an agricultural management entity, the Ministry of Agricultural Support, and a farmland lease agreement are required to prove that they are a farmer. In addition, a certified copy of resident registration, an application for membership registration, and an application for deposit, membership and dividend account deposit of members must also be completed. You must also submit an application for a change in the taxation system for investment expenses and a request for consent to provide financial transaction information, which states how much to invest in the union. In addition, they must have a farmland of 1,000㎡ or more and pay 10 million won in investment.

The biggest reason why LH employees registered as members of the Nonghyup through such cumbersome procedures is because of preferential interest rates. If you become a member of the Nonghyup, you will receive 0.2% point interest rate preferential treatment for a farmland mortgage loan. If the loan is 5.8 billion won and the interest rate is preferentially given by 0.2 percentage points, the only interest saved through this amount to 11.6 million won per year. It is the secret law of a financial expert who saves about 1 million won a month. Posing as a “fake farmer” aiming for land compensation also receives additional benefits. When you become a member, you can receive investment dividends and dividends for use. Dividends for investment can be received only by investing capital in the relevant Agricultural Cooperatives, but dividends for use are a system in which profits generated by the Agricultural Cooperatives are returned as dividends when points are accumulated through loans or credit cards or purchase of agricultural materials.

The Nonghyup is in a position that “the amount of dividends received by local members cannot be disclosed because of personal information,” but industry officials estimate that if they received a loan of 5.8 billion won, the resulting dividend would reach 5 million to 10 million won. The non-monetary benefits are also great. A local Agricultural Cooperative official said, “If you register as a union member, you will not only receive school expenses for your child, but also receive gift certificates or gift sets such as rice cake soup or Korean beef on holidays.” Said that.

It is interpreted in this context that Deputy Prime Minister Hong ordered an investigation into the lending process of LH employees suspected of participating in speculation. LH employees are asked to investigate whether the loans were properly executed, as it is highly likely that they used loan products by registering as fake farmers without actually farming. An official from the Nonghyup said, “The mortgage loan ratio (LTV) is 70%, the maximum allowed by the financial authorities, and this is not illegal as the loan is executed.” However, criticism of the lack of surveillance of fake farmers by the government and the Agricultural Cooperatives is expected to be difficult to avoid, as they registered as fake farmers without farming, and loans were made based on this. Pointing out that the procedure for verifying the actual farming status is poor, an official from the Ministry of Agriculture, Food and Rural Affairs said, “It is true that the regulations for holding farmland have been relaxed in order to induce new human resources and foster new industries.” We are promoting the review of related laws,” he said. LH employees first obtained a loan and then registered as a member of the Nonghyup. This is the know-how of `goers` who aimed to receive preferential interest rates and benefit from various members even after receiving a loan and registering as a member of the Nonghyup.

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