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Cooperatives around the world

NACF story : restructuring to 2 tier system

22 May 2025

Description

South Korea's 1980s restructuring of its agricultural cooperative (Nonghyup) system. A key change was the shift from a three-tiered to a two-tiered structure, eliminating the regional federations and strengthening individual cooperatives. This restructuring aimed to increase efficiency and reduce redundancy. Simultaneously, the selection process for cooperative leaders was democratized, moving from an appointment system to a more representative election process. Finally, a five-year plan was implemented to further solidify the individual cooperatives' standing and encourage their growth and internal development.

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