The cooperative is the system for which people come together in the market to enhance the competitiveness and improve their welfare and the quality of life. This played an important role of th in the development process of the primary industry.
The...
The cooperative is the system for which people come together in the market to enhance the competitiveness and improve their welfare and the quality of life. This played an important role of th in the development process of the primary industry.
The cooperative have had a critical role in the development in Korea. Korea experienced serious situations that are s Period of Japanese Occupation, the Korean War. In particular, the primary industry was faced with a serious crisis. The Korea Government needed the system to support the primary industy because Policy limited to overcome economic difficulties. Accordingly the Korea Government made a many of the cooperatives in the primary industry to help people's economic activity and comfortable life.
However, in the 1980s, government-driven management was faced with limitation to make decisions and spread public services. Furthemore, in the 1990s, the primary industry which weaked in a competitive price met a new crisis following globalization and liberalization in the world. Moreover, Korea was faced in economic crisis and experienced IMF(International Monetary Fund) bailout-program. The Korea foreign exchange market was worsen, major companies went bankrupt owing to poor management. The primary industry which had relatively economical weaknesses have a more difficult time than others. In this circumstance, each cooperative was poored by reckless management, their credit business came to impasse. To get over a difficulty, the government initiated a cooperative reform that integrates into the National Agricultural Cooperative Federation, the National Livestock Cooperative Federation, and the ginseng cooperative for efficiency of the system. But, in the forestry cooperative, the government make it to the National Forestry Cooperative Federation which was more marked a public service institution than a cooperative, considering speciality to forestry and profitable period.
A final goal of cooperative economic activity should focus on a harmonious society growth. Cooperatives in Europe and U.S.A are developing the new management system integrated creative business model with social value and democratic system over profit-making enterprises. However, cooperatives in Korea have a difficult to find identity and directivity because cooperative history in Korea is shorter than other countries and they have no many experiences depending on the government.
In the same context, the National Forestry Cooperative Federation (NFCF) was established by the government under the necessity to overcome difficulties in the forestry. From 1960s to 1980s, the character of NFCF was more closed to a public institution than a cooperative. However, recently, the circumstance in the world market and in the forestry have changed rapidly to focus on the globalization and the liberalization required competitiveness and survival in the market. The system which depends on the government policy is faced with limitation to help business in the forestry, plan to the forestry projects. Meanwhile, cooperators' right are emphasized by democratization in NFCF and their various forestry management skill and technology go beyond the forestry policies to help the owners of a mountain and people engaged in forestry.
From now on, the government should be required the role that revise legal system and make infrastructure that the owners of a mountain and people engaged in forestry can have economic activities, focusing on forestry environment and market change. In terms of NFCF, for overcoming the limitation and enhancing the character of cooperative, NFCF should plan to help cooperators manage their works, make the base to get profits, and spread the effect to develop the forestry. In other words, NFCF should establish the identity of a cooperative and change a role to dedicate to social responsibility.