science

National Agricultural Cooperative Federation

National Agricultural Cooperative Federation is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand National Agricultural Cooperative Federation rather than just read about it. In short: The South Korean National Agricultural Cooperative Federation (initialized as NH (in Korean, derived from NongHyup) or NACF) was established in 1961 to enhance the social and economic status of its membership and to promote a balanced development of the national economy. Its role is divided into three areas: marketing and supply, banking and insurance, and extension services.

Key takeaways

National Agricultural Cooperative Federation belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect National Agricultural Cooperative Federation to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of National Agricultural Cooperative Federation from memory before moving on to harder problems.

Reference excerpt

The South Korean National Agricultural Cooperative Federation (initialized as NH (in Korean, derived from NongHyup) or NACF) was established in 1961 to enhance the social and economic status of its membership and to promote a balanced development of the national economy. Its role is divided into three areas: marketing and supply, banking and insurance, and extension services.

Terminology Although literally referring to local member cooperatives, the term nonghyup is used by South Koreans to describe both a local cooperative (농협) and the NACF (농협중앙회).

History 2012 - NACF restructured into a federation with two holding companies, to increase effectiveness and competitiveness 2011 - Ranked ninth largest cooperative by the International Cooperative Alliance 2011 - Opened NH Residential Hall to accommodate 500 students from farming households 2011 - Launched 50th anniversary emblem and slogan 2008 - Ranked third largest cooperative by the International Cooperative Alliance 2008 - Opened International Banking(IB) center 2007 - CHOI Won-Byung inaugurated as chairman of the NACF 2006 - Hosted the 37th World Farmers' Congress of the International Federation of Agricultural Producers (IFAP) 2006 - Launched NH Investment and Securities after the acquisition of Sejong Securities 2005 - Introduced the CEO system for each business division 2004 - Launched the "New Rural Community and New Agricultural Cooperative" campaign 2004 - Established Nonghyup Culture and Welfare Foundation 2002 - Co-founded NH-CA Asset Management, Ltd. with the French Crédit Agricole 2001 - Hosted the International Co-operative Alliance(ICA) General Assembly 2000 - Launched the integrated NACF, consolidating the federations of agricultural, livestock, and ginseng cooperatives 1998 - Acquired ISO 9002 certification for the NACF brand Kimchi, which was designated the official food for 1998 Olympics 1995 - Founded the Korea Agricultural Cooperative Marketing, Inc, a subsidiary for produce distribution and sales 1995 - Initiated the independent operation of the Marketing and Supply and the Banking and Insurance divisions 1989 - Introduced a direct election system for the president of member cooperatives and the chairperson of the NACF 1986 - Began supplying tax-free oil for farm machinery and equipment 1985 - Launched an IT center equipped with 360 online networks 1984 - Launched annuity and fire insurance businesses 1984 - Launched credit card services 1981 - Restructured the 3-tier organization to a 2-tier organization, consisting of individual cooperatives and the federation 1969 - Launched the mutual credit business 1961 - Established the NACF, consolidating agricultural cooperatives and the Agricultural Bank in accordance with Agricultural Cooperative Law

Member cooperatives

Member cooperatives are democratically controlled, autonomous business groups, funded by member subscriptions rather than government financial investment. They, in turn, fund the NACF through institutional subscriptions. Cooperatives are governed by directly elected presidents, who, in turn, elect a chairman of the federation.

Member farmers and associate members Member cooperatives allow non-farmers, who have invested a certain amount of capital into the cooperative, to open tax-free bank accounts and access some services. However, whereas member farmers are defined as the genuine owners or stakeholders, associate members can only obtain limited access to or influence over the cooperative. As of December 2011, the number of the member farmers was 2,446,836 and the number of the associate members was 15,262,611. In 2010, these figures were 2,447,765 and 14,483,532, respectively, indicating a decline in member farmers of 929, and an increase in associate members of 779,079.

Number of cooperatives At the end of year 2011, the NACF comprised 1,167 head branches, alongside 3,306 cooperatives.

Korean agriculture Recent international agreements have affected South Korean agriculture and by extension the effectiveness of the NACF. These include the European Union–South Korea Free Trade Agreement, implemented in July 2011, and the Free trade agreement between the United States of America and the Republic of Korea, which took effect on 15 March 2012. Proposed agreements include the China–South Korea Free Trade Agreement, the official public hearing of which was held at the World Trade Center Seoul on 24 February 2012. Concerns over free trade agreements are reflected in the uncertain trends in Korean agricultural production. Total production by the agricultural sector in 2011 was KRW 44.62 trillion, up by 7.1% from 2010 (KRW 41.68 trillion) and including an 8.5% increase in the livestock and dairy sector. Conversely, the Korea Rural Economic Institute (KREI) expects the total production of agricultural industries to decrease by 1.1% in 2012.

Operational restructuring On 2 March 2012, the NACF restructured its operations, establishing financial and marketing holding companies through the revised Agricultural Cooperative Law and a resolution of the board of directors on 2 February 2012. The new NACF performs as the center of the member cooperatives, governing the Extension and Support Unit, the Agricultural and Supply Business Unit, the Livestock Marketing and Supply Unit and the Cooperative Banking Unit.

Extension and support unit The NACF supports the operations and management activities of member cooperatives by providing education and training for their members and working to promote the rights of farmers. It also provides investments to develop and promote new agricultural technologies and products.

Marketing and supply units The NACF provides marketing support for the production, distribution, processing, and consumption of agricultural and livestock products, focusing particularly on increasing the income of farming households by expanding sales channels and reducing farming costs. This enables farmers to concentrate their efforts on farming.

Cooperative banking unit The banking unit serves as an intermediary and facilitator, providing loan and deposit services for member cooperatives and engaging in other incidental businesses. As of 2011, the total deposit is KRW 209 trillion and the total loan volume is KRW 146 trillion.

Subsidiaries and affiliated organizations

… excerpt ends here. Continue reading the full article.

Illustrations

Worked examples

Example 1 — a first encounter with National Agricultural Cooperative Federation

Start with the simplest possible case. Write down what National Agricultural Cooperative Federation claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to National Agricultural Cooperative Federation before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about National Agricultural Cooperative Federation ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of National Agricultural Cooperative Federation

In research: National Agricultural Cooperative Federation appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses National Agricultural Cooperative Federation in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: National Agricultural Cooperative Federation is common in secondary-school and first-year university syllabi. It links to neighbouring topics Agricultural cooperatives, Agriculture in South Korea, Banks established in 1961, so understanding it makes those chapters shorter.
In everyday life: Look for National Agricultural Cooperative Federation outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

Ask Teacher Smith questions about this articleOpens your AI tutor with a question about “National Agricultural Cooperative Federation” →

Affiliate

Preply — study more efficiently by working with a personal tutor. 50% off.

How to study National Agricultural Cooperative Federation in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what National Agricultural Cooperative Federation means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain National Agricultural Cooperative Federation out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is National Agricultural Cooperative Federation in simple terms?

Why does National Agricultural Cooperative Federation matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study National Agricultural Cooperative Federation?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on National Agricultural Cooperative Federation.