The National Tax Service (NTS) is conducting a special tax audit into the National Agricultural Cooperative Federation (NongHyup).

According to the federation on June 29, the 4th Bureau of Investigation of the Seoul Regional Tax Office deployed approximately 130 investigators to the federation's headquarters in Jung-gu, Seoul, today to secure tax and accounting-related documents.

A representative from the federation explained, "It is correct that this is an irregular special tax audit, not a regular one," adding, "The last regular tax audit was received in November 2023."

It is reported that the NTS has launched the investigation to verify the flow of funds involving Chairman Kang Ho-dong and other executives and employees, as well as to check for potential illegal activities such as tax evasion and embezzlement.

Previously, the government formed a joint special audit team to conduct a special inspection of the federation, its subsidiaries, and member cooperatives, and decided in March to request a police investigation into 14 cases with significant potential for illegality.

In particular, Chairman Kang is suspected of receiving over 100 million won in bribes from the head of a service provider that has business dealings with NongHyup affiliates around January 2024, during the period of the federation's chairmanship election (a charge under the Act on the Aggravated Punishment, etc. of Specific Crimes).

Furthermore, he faces allegations of violating the Improper Solicitation and Graft Act, including misappropriating foundation project funds to procure 490 million won worth of gifts for cooperative heads, members, and employees who assisted in his election, as well as receiving a 10-don gold key (worth approximately 5.8 million won at the time) under the pretext of commemorating his first anniversary in office.

(Photo: Yonhap News)