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The National Agricultural Cooperative Federation and its financial subsidiaries are facing criticism from political circles for providing trillions of won in funding during large-scale mergers and acquisitions (M&A) involving private equity funds, which have impacted the nation's key industries and the agricultural and livestock sectors as a whole.
According to documents submitted by Nonghyup to Kim Sun-gyo, a People Power Party lawmaker on the National Assembly Committee for Agriculture, Food and Rural Affairs, Fisheries and Ocean, the total amount committed by the National Agricultural Cooperative Federation and five financial subsidiaries to funds managed by MBK Partners (hereinafter MBK) and acquisition financing from 2017 to 2026 reached 2.6643 trillion won. The cumulative executed amount, including reinvestments and re-withdrawals, was 2.6581 trillion won, while the current uncollected balance was recorded at approximately 913.1 billion won.
Over the past decade, Nonghyup conducted a total of 24 transactions in various forms, including refinancing to replace existing loans with new ones and bridge loans for short-term funding. These funds were deployed not only for Homeplus's asset-based lending (ABL) and the acquisitions of Medit and Osstem Implant, but also as financing for the tender offer (hostile M&A) for Korea Zinc, which is recently evaluated as a national key industry.
In particular, NH Investment & Securities executed a 1.715 trillion won bridge loan during MBK's tender offer for Korea Zinc in September 2024, and subsequently deployed an additional 500 billion won for the purpose of additional on-exchange purchases, providing a cumulative total of 2.215 trillion won in bridge loans.
These funds were fully repaid in May 2025, but a first refinancing of 600 billion won was immediately carried out on the same day. It is reported that this was subsequently replaced by a second refinancing (600 billion won) in April 2026, leaving the funds currently tied up as Korea Zinc M&A-related financing.
Political circles and agricultural and livestock associations have pointed out that Nonghyup's such actions directly contradict its founding purpose. In the case of Homeplus, which MBK acquired, the company conducted a leveraged buyout (LBO) using assets as collateral and sold off core assets, ultimately filing for rehabilitation in March last year. As a result, worker unemployment and the closure of partner companies occurred, while damage to the agricultural and livestock sectors grew due to delays in payment settlements.
Kim Seon-gyo (Rep.) stated, "It is contrary to Nonghyup's founding purpose that trillions of won of Nonghyup funds, built with the sweat of farmers and members, are supplied to the private equity fund that caused the Homeplus crisis," emphasizing, "The investment and loan review criteria for private equity across all financial subsidiaries must be immediately reorganized."
Industry experts pointed out that when transactions with the same manager are repeated across multiple affiliates, not only the collateral value of individual loans but also the management performance and competitiveness enhancement of previously acquired companies should serve as strict grounds for judging subsequent transactions. A business community official noted, "Nonghyup must establish institutional mechanisms or governance systems capable of appropriately reviewing impacts on the national economy, including industry, employment, and partner companies, beyond simple financial profitability."
In response, the National Agricultural Cooperative Federation explained in a written reply, "When reviewing acquisition financing, we place great importance not only on financial profitability but also on impacts to the national economy, such as industry, employment, and partner companies," adding, "We will review investment decisions more meticulously and cautiously going forward."
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