National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 1

National Agricultural Cooperative Federation

U.S. 165(d) Reduced Resolution Plan

Public Section

July 2022

This document contains forward-looking statements. Statements that are not historical facts, including statements about National 

Agricultural Cooperative Federation’ beliefs and expectations, are forward-looking statements. These statements are based on current plans, 

estimates and projections, and therefore undue reliance should not be placed on them. The forward-looking information contained in this 

document is presented for the purpose of interpreting the information contained herein and may not be appropriate for other purposes. 

Forward-looking statements speak only as of the date they are made, and National Agricultural Cooperative Federation undertakes no 

obligation to update publicly any of them in light of new information or future events.
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 2

Contents

1. Introduction..............................................................................................................................3

2. Overview of the National Agricultural Cooperative Federation .........................................4

3. Core Business Line, Critical Operation & Material Entity .................................................7

4. Summary of Financial Information Regarding Assets, Liabilities, Capital and Major 

Funding Sources.......................................................................................................................8

5. A Description of Derivative activities an Hedging activity.................................................13

6. A List of Memberships in Material payment, Clearing and Settlement systems.............14

7. A Description of Foreign operation......................................................................................15

8. Material Supervisory Authority ...........................................................................................16

9. The Identities of the Principal Officers................................................................................17

10. A Description of the Corporate Governance Structure and Processes related to 

Resolution Planning...............................................................................................................19

11. A Description of Material Management Information Systems..........................................21

12. A Description of the Covered Company’s Resolution Strategy.........................................22
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 3

(a) Public Section 

1. Introduction

The Reduced Plan of National Agricultural Cooperative Federation (‘NACF’) is being filed 

pursuant to Section 165(d) of the Dodd-Frank Wall Street Reform and Consumer Protection 

Act (the ‘Dodd-Frank Act’) and to implement regulations (the ‘Regulation’) issued by the 

Board of Governors of the Federal Reserve System (‘FRB’) (12 CFR Part 243) and the 

Federal Deposit Insurance Corporation (‘FDIC’) (12 CFR Part 381).

Any foreign bank or company that is treated as a bank holding company under Section 8(a) of 

the International Banking Act of 1978 (the ‘IBA’) and has $250 billion or more in global total 

consolidated assets is a ‘Covered Company’ for purposes of Section 165(d) and the Final 

Rule. A covered company is required to periodically submit to both the FRB and FDIC a plan 

discussing the rapid and orderly resolution of its U.S. operations in the event of material 

financial distress or failure. 

NACF is the top-tier parent company of NongHyup Financial Group (‘NHFG’) and 

NongHyup Agribusiness Group(‘NHAG’). NHFG is the third largest financial group in Korea 

in terms of total consolidated asset value, as of December 31, 2021 which provides a wide 

range of financial services to its customers through its subsidiaries. 

Also, NACF through NongHyup Agribusiness Group is the parent company of 14 

subsidiaries that provide services related to marketing and supply of agricultural and 

livestock products. Among the 14 subsidiaries are Nong Woo Bio, NonHyup Feed and NH 

Trading which operates subsidiaries in the U.S. 

In a multi-tiered holding company structure, the covered company is the top-tier of the multitiered holding company. NACF is defined as a ‘Covered Company’ under the Regulation 

since the global total consolidated assets of NACF, including its U.S. operations, exceeded 

$250 billion as of December 31, 2021. 

The FRB and the FDIC (together the “Agencies”) reviewed the 2015 Resolution Plan of 

NACF and jointly determined to reduce the information content that the covered company 

will be required to provide in its resolution plan submission due by Dec 31 of 2016, 2017 and 
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 4

2018(“Reduced Plans”), subject to the “conditions for Reduced Plans” specified by their 

letter on Jun 10, 2016 and as authorized under section _.4(k) of the Resolution Plan Rule.

On November 1, 2019, the Agencies published in the Federal Register amendments to the 

Section 165(d) Rule, the first revision of the Final Rule since its issuance in 2011. The 2019 

Revisions addressed changes to the resolution planning requirements of section 165(d) of the 

Dodd-Frank Act made by the Economic Growth, Regulatory Relief, and Consumer Protection 

Act (EGRRCPA). The 2019 Revisions established three difference resolution plan filing 

groups (biennial filers, triennial full filers, and triennial reduced filers) for determining the 

application of the resolution planning requirement to U.S. and foreign banking organizations, 

consistent with section 401 of EGRRCPA. Specifically, EGRRCPA raised the $50 billion 

minimum asset threshold for general application of enhanced prudential standards, including 

the resolution planning requirement, to $250 billion in total consolidated assets (or global 

assets) for a foreign banking organization. 

NACF incorporated information about NHAG’s three U.S. operations in the Reduced

Resolution Plan, in order to incorporate all assets of the covered company in the Resolution 

Plan as to thoroughly follow the requirements of the Final Rule.

However, NACF does not have material entities, critical operations, and core business lines 

even when the three U.S. operations of NHAG are considered. Moreover, all financial 

operations of NACF are under the control of NHFG, and NHAG and its subsidiaries are 

independent of the U.S. financial system as they do not carry out any finance related business.

2. Overview of the National Agricultural Cooperative Federation 

NACF was established out of a merger of agricultural cooperatives and the agricultural bank 

in 1961, in an attempt to construct a national cooperative system for Korean farmers suffering 

from poor production capacity and insufficient financial resources. In the decades since, 

NACF has played a crucial role in the growth of the Korean economy, developing into one of 

the most successful cooperatives in the world.

NACF is the apex organization of 1,117 primary member cooperatives representing more 

than 2.1 million member farmers in Korea. Member farmers are the owners, users, and 

controllers of the agricultural cooperatives. Similarly, 1,117 primary cooperatives are the 
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 5

owners of the federation, NACF.

The member cooperatives are democratically controlled, autonomous business groups, 

funded by member subscriptions rather than government financial investment. They, in turn, 

raise capitals to fund NACF through institutional subscriptions. Cooperatives are governed by 

directly elected presidents, who, in turn, elect a chairman of the federation.

Over the past five decades, financial operations of NACF (bank, insurance, securities, capital 

and futures) have enjoyed substantial growth, leading it to become one of the largest financial 

institutions in Korea. On March 2, 2012, NACF physically separated its operations, 

establishing the two holding companies under the revised National Agricultural Cooperative 

Act and a resolution by the Board of Directors: the financial holding company (NongHyup 

Financial Group) and the agricultural holding company (NongHyup Agribusiness Group). 

NHFG is a financial holding company established and organized under the Financial Holding 

Companies Act of Korea with its head office in Seoul, Korea. NHFG has been poised to 

flexibly respond to the ever-changing social, economic, and financial environments, while 

providing high-quality financial services to its customers through its subsidiaries, including 

NH Bank, NongHyup Life Insurance, NongHyup Property & Casualty Insurance, NH 

Investment & Securities, NH-Amundi Asset Management, NH Capital, NH Savings Bank,

NH REITs Management, and NH Venture Investment.

Exhibit 1: NACF Organization
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 6

Exhibit 2.1: NHFG Organizational Structure

Exhibit 2.2: NHAG Organizational Structure
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 7

3. Core Business Line, Critical Operation & Material Entity

3.1. Core Business Lines

Core Business Lines are defined as the business lines of the covered company which are 

conducted in whole or material part in the U.S., and the failure of which would result in a 

material loss of revenue, profit, or franchise value to the covered company.

Based on analysis performed on a quantitative, as well as, a qualitative basis, failure of 

NACF’s U.S. operations would not have a material effect on the overall value of the covered 

company.

As such, for the purpose of this U.S. Resolution Plan, NACF has determined that it had no 

core business lines, banking and nonbanking that were conducted in the U.S. as of December 

31, 2021.

3.2. Critical Operations

Critical Operations are defined in the Regulation as those operations of a covered company 

which are conducted in whole or material part in the U.S., including associated services, 

functions and support, the failure or discontinuance of which, would pose a threat to the 

stability of the U.S. financial system.

After a thorough review of its U.S. operations, NACF has determined that none of the 

operations, being insignificant to the U.S. financial market and easily substitutable, if 

discontinued, would pose a threat to the financial stability of the U.S. As such, for the 

purpose of this Reduced Resolution Plan, NACF has determined that it does not have any 

Critical Operations.

3.3. Material Entities 

Material Entities are defined as a subsidiary or foreign office of the covered company that is 

significant to the activities of a Critical Operation or Core Business Line. None of the 

business lines of NACF conducted in the United States have been determined to be a “Core 

Business Line” or a “Critical Operation”. Therefore, for the purposes of this Reduced 

Resolution Plan, NHFG has no material entities.
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 8

3.4. U.S. operations of NHAG

NACF does not have material entities, critical operations, and core business lines even when 

the three U.S. operations of NHAG are considered. Moreover, all financial operations of 

NACF are under the control of NHFG, and NHAG and its subsidiaries are independent of the 

U.S. financial system as they do not carry out any finance related business.

4. Summary of Financial Information Regarding Assets, Liabilities, Capital 

and Major Funding Sources

4.1. Financial Statements of NACF, NHFG and NHAG

NHFG and NHAG came into existence because of a split-off from NACF on March 2, 2012, 

for the purpose of controlling and managing companies that conduct financial business and to 

support funding.

Subsidiaries of NHFG include NongHyup Bank, NongHyup Life Insurance, NongHyup 

Property & Casualty Insurance, NH Investment & Securities, NH-Amundi Asset 

Management, NH Capital, NH Futures, NH Savings Bank and NH Venture Investment.

NHAG is the parent company of 14 subsidiaries that provide services related to marketing 

and supply of agricultural and livestock products. Among the 14 subsidiaries are Nong Woo 

Bio, NongHyup Feed and NH Trading which operates subsidiaries in the U.S. 

The entity’s headquarter is located at 16 Saemoonan-ro (Chungjeong-ro 1 street) Joong-gu in 

Seoul. As of December 31, 2021, and the NACF owned 100% shares of NHFG and NHAG’s 

capital stock.
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 9 

Exhibit 3: Non- consolidated balance sheet of NACF as of December 31, 2021 

(Units: ₩ Korean million, $ U.S. million)

Description 2021(KRW) 2021(USD)

Assets

Assets of General Business Sector 29,628,960 24,993 

Assets of Administrative Sector 29,628,960 24,993 

Current Assets 1,110,542 937 

Quick Assets 1,110,542 937 

Cash & Cash Equivalents 6,134 5 

Shor-term Financial Instruments 1,077,173 909 

Non-Trade Receivable 5,087 4 

Accrued Revenues 6,472 5 

Prepaid Expense 15,159 13 

Others 517 0 

Non-current Assets 28,518,418 24,056 

Investment Assets 27,812,731 23,461 

Property & Equipment 490,296 414 

Intangible Assets 99,368 84 

Others 16,023 14 

Assets of Special Business Sector 114,999,189 97,005 

Assets of Education & Support Service 6,581,251 5,551 

Assets of Mutual Credit Business 108,417,938 91,453 

Total Assets 144,628,149 121,998 

Liabilities

Liabilities of General Business Sector 15,092,448 12,731 

Liabilities of Administrative Sector 15,092,448 12,731 

Current Liabilities 3,252,453 2,744 

Debentures 3,020,000 2,547 

Discount on Bond Issuance (38) 0 

Non-Trade Payable 172,997 146 

Accrued Expenses 60,630 51 

Others 8,864 7 

Non-Current Liabilities 11,829,995 9,979 

Debentures 10,010,000 8,444 

Discount on Bond Issuance (642) (1)

Accrued Severance Benefits 166,006 140 

Retirement Fund (65,546) (55)

Deferred Tax Liabilities 1,708,974 1,442 

Others 11,203 9 

Liabilities of Special Business Sector 108,417,917 91,453 

Liabilities of Education & Support Service 837,305 706 

Liabilities of Mutual Credit Business 107,580,612 90,747 
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 10

Description 2021(KRW) 2021(USD)

Total Liabilities 123,510,365 104,184 

 

Equity

Capital Stock 10,351,529 8,732 

Capital Surplus 150,370 127 

Capital adjustment (25,109) (21)

Accumulated Other Comprehensive Income (592,469) (500)

Retained Earning 11,233,463 9,476 

Legal Reserve 5,466,986 4,612 

Voluntary Reserve 4,226,295 3,565 

Retained Earning 1,540,182 1,299 

Total Equity 21,117,784 17,813 

Total Liabilities & Equity 144,628,149 121,998 

(USD 1$ = KRW 1,185.5 won)

Exhibit 4-1: Consolidated balance sheet of NHFG as of December 31, 2021

(Units: ₩ Korean million, $ U.S. million)

Description 2021(KRW) 2021(USD)

Assets

Cash and due from banks 12,845,129 10,835 

Financial assets at fair value through profit or loss 59,967,770 50,584 

Derivative assets 1,140,865 962 

Financial assets at fair value through other comprehensive income 49,836,843 42,039 

Financial assets at amortised cost 43,542,559 36,729 

Loans and receivables 331,329,375 279,485 

Investments in associates and joint ventures 739,063 623 

Tangible assets 3,488,751 2,943 

Right of Use 267,629 226 

Investment properties 885,912 747 

Intangible assets 682,619 576 

Current income tax assets 12,112 10 

Deferred income tax assets 281,919 238 

Other assets 1,917,505 1,617 

Assets classified as held for sale 15 0 

Total assets 506,938,066 427,615 

Liabilities

Deposits 299,449,460 252,593 

Trading financial liabilities 5,940,043 5,011 

Financial liabilities at fair value through profit or loss 7,577,692 6,392 
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 11

Description 2021(KRW) 2021(USD)

Derivative liabilities 1,371,022 1,156 

Borrowings 35,783,151 30,184 

Debentures 34,642,151 29,222 

Provisions 510,930 431 

Retirement benefit obligations 486,726 411 

Insurance contract liabilities 70,025,136 59,068 

Current income tax liabilities 290,992 245 

Deferred tax liabilities 81,780 69 

Other liabilities 22,829,412 19,257 

Total liabilities 478,988,495 404,039 

Equity

Equity attributable to equity holders of the parent 23,766,479 20,048 

Capital stock 1,414,095 1,193 

Other paid-in capital 14,999,804 12,653 

Retained earnings 8,754,921 7,385 

Other component of equity (1,402,341) (1,183)

Non-controlling shareholder's equity 4,183,092 3,529 

Total equity 27,949,571 23,576 

Total liabilities and equity 506,938,066 427,615 

(USD 1$ = KRW 1,185.5 won)

Exhibit 4-2: Consolidated balance sheet of NHAG as of December 31, 2021

(Units: ₩ Korean million, $ U.S. million)

Description 2021(KRW) 2021(USD)

Assets

Current Assets 5,733,979 4,837 

Cash and due from banks 511,198 431 

Trading financial assets 198,545 167 

Financial assets at fair value through profit or loss 314,473 265 

Account receivable 1,647,443 1,390 

Financial assets at fair value through other comprehensive income 507 0 

Inventory 1,214,936 1,025 

Biological asset 35,533 30 

Current income tax assets 826 1 

Other current financial assets 1,675,748 1,414 

Other current assets 98,662 83 

Assets classified as held for sale 36,108 30 

Non-Current Assets 6,701,410 5,653 

Long-term financial asset 11,735 10 

Long-term Account receivable 1,796,747 1,516 
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 12

Financial assets at fair value through other comprehensive income 85,728 72 

Deferred income tax assets 42,072 35 

Investments in associates and joint ventures 185,017 156 

Tangible assets 3,045,236 2,569 

Right of Use 46,652 39 

Investment properties 251,960 213 

Intangible assets 136,210 115 

Biological asset 4,166 4 

Other non-current financial assets 1,089,537 919 

Other non-current assets 6,350 5 

Total assets 12,435,389 10,490 

Liabilities

Current Liabilities 4,887,076 4,122 

Financial liabilities at fair value through profit or loss 917 1 

Account payable 1,476,632 1,246 

Borrowings 2,936,294 2,477 

Current income tax liabilities 22,498 19 

Provisions 11,133 9 

Deferred income 5,161 4 

Other current financial liabilities 45,044 38 

Other current liabilities 364,369 307 

Liabilities related to Assets classified as held for sale 25,028 21 

Non-Current liabilities 2,052,099 1,731 

Long-term account payable 1,918 2 

Borrowings 1,714,842 1,447 

Retirement benefit obligations 181,114 153 

Deferred tax liabilities 48,331 41 

Provisions 37,731 32 

Other non-current financial liabilities 66,274 56 

Other non-current liabilities 1,889 2 

Total liabilities 6,939,175 5,853 

Equity

Equity attributable to equity holders of the parent 5,116,328 4,316 

Capital stock 3,657,440 3,085 

Other paid-in capital 1,406,139 1,186 

Retained earnings 237,221 200 

Other component of equity (184,472) (156)

Non-controlling shareholder's equity 379,886 320 

Total equity 5,496,214 4,636 

Total liabilities and equity 12,435,389 10,490 

(USD 1$ = KRW 1,185.5 won)
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 13

4.2. Capital Adequacy 

NHFG is required to maintain its capital adequacy ratio against risk-weighted assets in 

accordance with the criteria set by the Bank of International Settlements (the ‘BIS capital 

adequacy ratio’), and it must be 8/100 or more according to the Financial Holding Companies 

Act. The Bank for International Settlements’ Basel Committee for International Banking 

Supervision has drawn up global standards for capital adequacy determining how much 

capital financial institutions should set aside as a proportion of risky assets. BIS capital 

adequacy ratio is calculated as the sum of the basic and supplementary capital reflecting 

items deducted from capital, which is divided by risk-weighted assets.

The basic capital consists of paid-up capital, statutory reserves and retained earnings for 

permanent capital; and supplementary capital consists of the items of capital contribution 

containing liability characteristics that meet the criteria as determined and announced by the 

Financial Services Commission with the limit of 100% of basic capital. Deduction items are 

deducted from basic and supplementary capital for the purpose of capital management, which 

has no capital characteristics, such as deferred tax assets. Details of the NHFG’s BIS capital 

adequacy ratio as of December 31, 2021 and 2020 are as follow. 

Exhibit 5: Capital Adequacy of NHFG 

(Unit: %)i

Classification

Year ended December 31

2021 2020 

Total capital ratio 15.45 15.18 

Basic capital ratio (Tier 1 ratio) 13.99 13.69 

Common equity tier 1 ratio 12.50 12.55 

Total capital=Basic capital + Supplementary capital,

Basic capital=Common Equity capital + other basic capital

5. A Description of Derivative activities and Hedging activity

5.1. NHFG 

NHFG enters into a variety of derivative contracts to manage its exposure to interest rate and 

foreign exchange rate risk associated with financials instruments, including currency forward 

contracts, interest rate swaps and cross-currency swaps.
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 14

Derivatives are initially recognized at fair value at the date the derivative contract is entered 

into and are subsequently re-measured to their fair value at the end of each reporting period. 

Derivatives used for trading purposes are recognized as financial assets and liabilities at 

FVTPL (Fair Value Through Profit and Loss) and derivatives for hedging purposes are

recognized as hedging-purpose derivative assets and liabilities on the consolidated financial 

statements at fair value.

The resulting gain or loss is recognized in net income immediately, unless the derivative is 

designated and effective as a hedging instrument, in such case the timing of the recognition in 

net income depends on the nature of the hedge relationship. Fair value hedge accounting or 

cash flow hedge accounting is applied to the derivatives when the derivatives meet the certain 

requirements for hedging. 

A derivative instrument with a positive fair value is recognized as a financial asset; and a 

derivative with a negative fair value is recognized as a financial liability.

5.2. U.S. operations 

NongHyup Bank New York branch (‘NHBNY’) is not a party dealing with any swaps, 

repurchase agreement, or derivative transactions, and therefore, NongHyup Bank does not 

have any exposure related to such activities in connection with its U.S. operations. 

NH Investment & Securities America, Inc (‘NHISA’) acts as an agent for institutional clients 

for the purchase and sale of Korean and U.S. Securities. However, NHISA does not perform 

any trading or derivative transactions on its own behalf. 

This section is not applicable to the U.S. Operations of NHAG as they carry out non-financial 

businesses.

6. A List of Memberships in Material payment, Clearing and Settlement 

systems 

Each of U.S. operations holds memberships in financial market utilities (‘FMUs’) for 

payment, clearing, and settlement services, in order to conduct essential financial transactions.

The following Exhibit 6 is the list of NHBNY and NHISA’s memberships in material 

payment, clearing, and settlement systems: 
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 15

Exhibit 6: Memberships in Payment, Clearing, and Settlement Systems

Entity Holding 

Membership Name Description

NHBNY

Fedwire U.S. Dollar payment system 

FEDLine

Advantage Services

Access to FRB-provided advanced payment 

service, Fedwire Funds Service

SWIFT Society for Worldwide Interbank Financial 

Telecommunication

NHISA APEX Clearing U.S. Clearing / Settlement Systems, U.S. Dollar 

Payment System, Securities System 

This section is not applicable to the U.S. Operations of NHAG as they carry out non-financial 

businesses. 

7. A Description of Foreign operation 

7.1. U.S. Operations 

In the United States, NHFG operates a branch of NongHyup Bank, Korea, and a registered 

broker-dealer, NH Investment & Securities America, Inc., which is a wholly-owned 

subsidiary of NH Investment & Securities, Korea. NHBNY and NHISA were opened in 2013 

and 1992 respectively and both have located in New York. 

NHBNY engages in corporate banking operations, including syndicated loan servicing, 

remittance/money transmittal services, trade finance services (i.e., L/C acceptance and 

reimbursement), and corporate financial services for Korean and other foreign companies 

with subsidiaries or branches in the United States and funding activities. NHBNY, in the 

ordinary course of business, has extensive transactions and relationship with the NH Bank’s 

Head Office and other affiliates. NHISA acts as an agency for institutional clients for the 

purchase and sale of Korean and U.S. Securities. NHISA executes and clears Korean 

securities trades through its parent company, NH Investment & Securities, while it clears U.S. 

securities trades through third-party vendors. However, NHISA does not perform any trading 

or derivative transactions on its own behalf. 

NHAG’s U.S. operations include NH-HAY(‘NH HAY’), Nongwoo Seed America(‘NWSA’) 

and Nonghyup America(‘NHA’), whose parent companies are Nonghyup Feed, Nong Woo 

Bio and NH Trading, respectively. NHAG is the major shareholder of the three parent 
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 16

companies.

NHAG’s U.S. subsidiaries were incorporated for agricultural business, including sales of 

agricultural products. Nong Woo Bio is a seed provider involved in R&D, production and 

sales of seeds and plant genetics which incorporated Nongwoo seed America in April 1994 

for R&D in American produces. Nonghyup Feed produces animal feeds and incorporated NH 

HAY in August 2008 for the purpose of research and manufacturing of animal feeds.

Nonghyup America is the subsidiary of NH Trading and serves the role of Overseas operation 

frontline of NHAG. 

7.2. Other Foreign Operations 

As of December 31, 2021, NongHyup Bank operates 2 subsidiaries, 3 branches and 5 

representative offices in 7 countries, NH Investment & Securities operates 6 subsidiaries and 

2 representative office in 6 countries, and NH Capital operates 2 subsidiaries in 2 countries 

around the world. 

NHAG operates 3 subsidiaries in the U.S. and 8 subsidiaries and 1 representative office in 7 

other countries around the world. 

Exhibit 7: Financial information of Foreign Operations 

(Units: $ U.S. million)

Geographic 

Area

NHFG NHAG

Domestic U.S. Other 

Countries Domestic U.S. Other Countries

Total Asset 426,118 240 1,257 10,386 36 68 

Revenue 11,575 23 74 11,914 52 45 

Operating 

Income 3,550 11 35 35 1 3 

(USD 1 = KRW 1,185.5 won) 

8. Material Supervisory Authority 

NHBNY is licensed by the state banking authority of the State of New York and is therefore 

subject to regulation and examination by the New York State Department of Financial 

Services (‘NYSDFS’) and Federal Reserve Bank of New York (‘FRBNY’). NHISA is 

regulated primarily by Financial Industry Regulatory Authority (‘FINRA’) and the Securities 
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 17

and Exchange Commission (‘SEC’). In addition to these regulators, NHISA is also subject to 

regulation by the New York Stock Exchange (‘NYSE’), the U.S. Department of Treasury, the 

Federal Reserve and the Commodities Futures Trading Commission (‘CFTC’).

NHBNY and NHISA are subsidiaries of NHFG which is a financial holding company under 

the Financial Holding Companies Act of Korea. Hence, NHBNY and NHISA are subject to 

regulation, supervision, and enforcement by the home country regulators. 

Exhibit 8: Identities of Material Supervisory Authority 

Legal Entity Primary Regulator

NHBNY

New York State Department of Financial Services(NYSDFS)

Federal Reserve Bank of New York(FRBNY)

NHISA

Financial Industry Regulatory Authority (FINRA)

Securities and Exchange Commission (SEC) 

U.S. Department of Treasury 

New York Stock Exchange (NYSE)

Federal Reserve and the Commodities Futures Trading Commission 

(CFTC)

NH HAY Not Applicable

NWSA Not Applicable

NHA Not Applicable

9. The Identities of the Principal Officers 

The Exhibit 9 and 10 below list Directors and Senior Management of NACF, NHFG and 

NHAG.
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 18

Exhibit 9: NACF Board Member 

Name Title

LEE SUNG-HEE Chairman

LEE JAE-SIK Vice Chairman / President & CEO, Planning & Extension

JO SO-HAENG President & CEO, Cooperative Bank 

LEE KYU-SAM Chairman of Audit Committee 

PARK TAE-SUN Chairman of Cooperative Supervisory Committee 

YEOM KYU-JONG Board Members

KIM JAE-HO Board Members

KIM SEONG-TAE Board Members

LIM YOO-SOO Board Members

KIM WON-CHUL Board Members

JANG SEUNG-YOUNG Board Members

SUNG YOUNG-KEUN Board Members

HWANG SEONG-BO Board Members

LEE CHANG-CHUL Board Members

SONG YOUNG-JO Board Members

LEE JAE-HYEONG Board Members

PARK JAE-JONG Board Members

PARK MAN-SOO Board Members

GOH PYEONG-HUN Board Members

CHOI SUNG-HWAN Board Members

KIM YOUNG-NAM Board Members

AHN HYUN-KOO Board Members

CHO JAE-YOUL Board Members

KANG JUNG-HWA Board Members

PARK JUNG-KYU Board Members

AHN KYOUNG-WHAN Board Members

IM JEONG-BIN Board Members

YEO IN-HONG Board Members

LEE DEOK-SOO Board Members

LEE HAK-GU Board Members
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 19

Exhibit 10-1: NHFG Board Member

Name Title

SON BYEONGHWAN Chairman

BAE BOOYEOL Director

AN YONG SEUNG Director

NAM BYUNG HO Outside Director

SEO EUN SOOK Outside Director

SONG IN CHANG Outside Director 

LEE SOON HO Outside Director

LEE JONG BAEK Outside Director

HA KYUNG JA Outside Director 

HAHM YU KUN Outside Director

Exhibit 10-2: NHAG Board Member

Name Title

WOO SEONG-TAE President & CEO, Marketing & Supply

AHN BYUNG-WOO President & CEO, Livestock

KIM SEONG-TAE Director

KIM YOUNG-NAM Director

PARK MAN-SOO Director

IM YOO-SOO Director

CHANG SEUNG-YOUNG Director

CHO JAE-YEOL Director

KIM DONG-HWAN Outside Director

NAM IN-SIK Outside Director

BYUN DONG-KANG Outside Director 

10. A Description of the Corporate Governance Structure and Processes related 

to Resolution Planning 

As indicated in the exhibit below, the following key departments were established or given 

the responsibilities for resolution planning: 
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 20

Exhibit 11: NACF Resolution Planning Governance Structure

10.1. NACF

NACF’s Board of Directors (‘BOD’) is the top-tier governance body of NACF. It is 

ultimately responsible for the safety and soundness of NACF’s daily operations on a global 

basis. The BOD provides high-level guidance, approves and evaluates NACF’s U.S. 

Resolution Plan. Moreover, NACF’s NH Economic Research Institute and International 

Cooperation Office and works closely with NHFG’s Global Strategy Department and 

Business Strategy Group to periodically reviews the resolution plan and provide specific 

feedback.

10.2. NHFG 

NHFG is the financial holding company engaged in managing its subsidiaries and business 

affairs incidental to managing its subsidiaries. NHFG formulated the specifics of the 

resolution strategies by supporting department, such as information technology, accounting

and legal. 

10.3. NHAG 

NHAG is the agribusiness holding company engaged in managing its subsidiaries and 

business affairs incidental to managing its subsidiaries. NACF and NHFG requested NHAG 

to provide management and financial information regarding the U.S. operation of NHAG 

subsidiaries that are necessary for the preparation of the Resolution Plan. 

NH Bank New York 

Branch

NH Investment

& Securities America NH Hay NongHyup America

NongHyup Agribusiness Group

NongWoo Seed 

America

Nonghyup Feed Nongwoo Bio NH Trading

NongHyup Financial Group

NH Bank NH Investment & 

Securities
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 21

11. A Description of Material Management Information Systems

As the covered company of NHBNY, NHISA, NH HAY, NWSA, and NHA, NACF has 

established its own management information system to prove comprehensive management 

support across its subsidiaries. In this system, the management information associated with 

NACF’s subsidiaries is categorized mainly into the three sections: general status, financial 

report, and non-financial report. 

Specifically, the general status section contains 18 sub-items per subsidiary, and the financial 

report section contains 15 sub-items (including key performance index) used to analyze the 

financial conditions of NACF’s subsidiaries. Moreover, the non-financial report section 

contains 12 managerial items associated with non-financial business issues, such as reporting 

to regulators. 

Exhibit 12: Task Process of Management Information System for NACF
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 22

12. A Description of the Covered Company’s Resolution Strategy

NACF has determined that it has no Material Entities, Critical Operations, or Core Business 

Lines within the U.S. operations. However, NACF has performed a limited analysis of 

resolution strategies for each of its U.S. operations in the event of material financial distress

or failure as described below.

12.1. NHBNY 

NHBNY is licensed by the state banking authority of the State of New York and is therefore 

subject to regulation and examination by the New York State Department of Financial 

Services (‘NYSDFS’). In addition, the Board of Governors of the Federal Reserve Bank of 

New York, (‘FRBNY’) has supervisory and regulatory authority over NHBNY.

The U.S. Resolution Plan contemplates that NHBNY would be subject to New York bank 

insolvency law rather than the U.S. Bankruptcy Code, in the event of the insolvency. The law 

generally includes a ring-fencing insolvency regime that effectively draws a fence around the 

NHBNY and treats it as a separate entity from NongHyup Bank. Assets of the NHBNY may 

be seized and liquidated by the receiver to pay off the claims of creditors of the NHBNY. 

12.2. NHISA

Although NHISA is a registered broker-dealer and a member of the Securities Investor 

Protection Corporation (‘SIPC’), NHISA would only be eligible for resolution under the 

Securities Investor Protection Act (‘SIPA’), if it has “customers” as defined under SIPA upon 

its entry into resolution. Generally, SIPA is applicable only when the customers entrust assets 

to the broker-dealer. As an Introducing Broker-Dealer, NHISA does not hold any customer 

assets in the ordinary course of business. 

Therefore, NACF assumes that NHISA would be resolved through reorganization under 

Chapter 11 of Bankruptcy Code and wound down in an orderly manner. The primary 

objective of the Chapter 11 proceedings would be to maximize the value realized from the 

assets and businesses of NHISA. If NHISA’s financial distress has passed the stage of 

reorganization and must sell off its assets, it will be resolved through liquidation under the 

Chapter 7 of Bankruptcy Code.
National Agricultural Cooperative Federation

NACF 165(d) Reduced Resolution Plan 2022 (Public) 23

12.3. U.S. Operation of NHAG

U.S. operations of NHAG comprises of subsidiaries incorporated for the purpose of providing 

support for NHAG’s trading business and to increase market share, which are independent of 

the U.S. financial system. Also, Head office in Korea provides 100% of capital to its 

subsidiaries, which means that there will be no financial impact on investors in the U.S. in 

case of failure of operation. In the event of a U.S. business with NHAG, an orderly process 

will be implemented in accordance with the laws on bankruptcy and resolution related to each 

company.