• Journal of Agricultural Extension & Community Development
• /
• v.21 no.4
• /
• pp.967-1006
• /
• 2014

This study attempted to provide policy recommendations in promoting new cooperatives established in agriculture based on the 2012 Cooperative Act. A questionnaire survey was conducted with 195 newly established cooperatives as the policy target of this study. The new cooperatives were classified as three kinds namely as 'Business' Cooperatives', 'Consumers' Cooperatives', 'Social Cooperatives' based on their member attributes and objectives. Interesting to note that, all of these new cooperatives born by the new Act has taken the marketing business as their main stream business. Among the three types, 'Business Cooperatives' are ranked the highest amount of capital shares per person in average, having about 30 members in size. In categorization, 'Business Cooperatives' include farmer cooperatives as majority and employee cooperatives. They are usually involved in both production and marketing and even in processing activities, and have tried to secure their business performance by e-commerce and stable business contracts. Their diverse activities are highly associated with their local community. Consumers' Cooperatives include consumer cooperatives and stakeholder cooperatives in achieving welfare of members. This type has lower share in capital but has over 30 members in a cooperative, taking marketing (distribution) business as main and often take advantage of their social network and physical store. Regional relationships are less than producer cooperatives. 'Social Cooperatives' are established by public interest and have around 10 members and lowest per capital. their business and community activity is similar to the consumer cooperatives. This study recommends the needs of designing suitable business models by these three types of cooperatives in the future, while appropriating their membership size for their tangible business operations. The government policy direction should aim to develop their new business opportunities and its management stabilization, especially in conjunction with the existing agricultural cooperatives (Nonghyup). It must be rather than to provide simply policy supports for establishment. An in-depth study is recommended in this regard.