Fishermen’s Bank to Introduce Single-Term Chairmanship
By Yoon Ja-young
Staff Reporter
The National Federation of Fisheries Cooperatives (NFFC), or Suhyup, is expected to follow the farmers' bank's reform plans.
According to the Ministry of Food, Agriculture, Forestry and Fisheries, the Suhyup Reform Committee agreed to introduce a single-term period of office for the cooperative's chairman. At present, there is no limit on the tenure of its chairman.
The reform plan, which came after three meetings, goes hand in hand with the National Agricultural Cooperative Federation, or Nonghyup, reform measures announced last week, which cut the chairman's power. Both federations will reduce the absolute power enjoyed by the chairperson.
However, while Nonghyup determined to elect its chairman through an indirect election system by representatives, the Suhyup head will continue to be elected through public voting by 94 heads of regional cooperatives.
The marine bank, engaged in distribution and marketing of fisheries products and enhancing quality of life for fishermen, has been constantly criticized as being as ineffective as the corrupt, gigantic farmers bank.
The reform committee determined that first it would integrate the federation's general service businesses, such as education for fishermen, and mutual financing and marketing business.
However, it hasn't come up with a solution yet over whether to pay back the 1.1 trillion won in government funds earlier than scheduled. The federation's headquarters got 1.1 trillion won in public-fund support in 2001, but it is still ailing. Some regional cooperatives are on the verge of bankruptcy. Around one out of every three regional cooperatives have completely impaired capital. The cooperatives, which get government support, give their member fishermen loans at low rates of interest, but the default rate hovers over 10 percent. The reform committee hasn't reached an agreement over a restructuring plan either.
The committee is scheduled to announce the final version of its reform plan around the end of this month after more discussions.