What happened?

According to data submitted to the National Assembly's Agriculture Committee, overdue loans at South Korea's local agricultural cooperatives totaled about 20.96 trillion won as of the end of August 2026. That is up from roughly 4.08 trillion won at the end of 2022. The delinquency rate climbed from 1.21% to 5.45% over the same period, according to lawmakers who reviewed figures from NH Central Cooperative.

How serious is the deficit problem?

Lawmakers said 215 of the 1,106 local cooperatives, or 19.4%, recorded a deficit in August 2026. Non-performing loans, which are loans considered unlikely to be recovered, rose from 565.9 billion won in 2022 to 2.16 trillion won in August 2026.

Why are farmland loans a concern?

Losses from selling non-performing farmland-secured loans from March to August 2026 reached 22.6 billion won, 2.3 times the same period last year. The lawmakers linked this rise to the period after President Lee Jae-myung mentioned a nationwide farmland survey. New farmland-secured lending over the same months fell by 1.74 trillion won year on year.

Who is borrowing?

Of the 12.23 trillion won increase in lending at 1,112 local NH cooperatives in the first half of 2026, 89.4% went to non-members and quasi-members. Loans to full members rose by only 1.30 trillion won.

For international fans

The report is mainly about farm finance rather than entertainment. It shows how regional cooperatives, which serve many rural communities, are facing growing debt pressure. Lawmakers are calling for stronger oversight by local cooperatives and by NH Central Cooperative.