What does ‘iCOOP’ stand for? “i” individual, ideal, intention, and innovation Individuals promoting the ideals(sharing and cooperation) of the group, never losing sight of our original intention and practicing innovation, as a consumer COOPerative.

iCOOP KOREA

171-9 Singil-dong Yeongdeungpo-gu , R.O.Korea(150-050) Tel. 82-2-1577-0014 E-mail. [email protected] www.icoop.or.kr

※ This book is made from recycled paper to save trees and the environment. No chloride bleach or fluorescent pigments included. 2012 is the International Year of Co-operatives by the U.N.

Ethical consumerism: a most beautiful practice iCOOP KOREA 2011 Annual Report iCOOP Solidarity of Consumer Co-operatives(iCOOP KOREA)

iCOOP KOREA iCOOP KOREA Today

Target contribution for 2011

300,000,000,000 KRW(approx. 267m USD)

Contribution for 2010

263,277,000,000 KRW(approx.234m USD)

Membership as of March 2011

129,666 persons

Membership as of Dec. 2010

118,824 persons

Local co-op membership as of March 2011

75 member societies

In spite of hard economic condition surrounding consumers, iCOOP Solidarity of Consumer Cooperatives (referred to as “iCOOP KOREA” hereafter) has achieved powerful performance. The contribution of 263 billion KRW and 118,824 members are valuable records that show We do band together, as times get hard spirits of all members. These records are highest in ’s consumer co-op group, almost double times than other consumer co-op groups. Part 1 Introduction

Introduction

Foreword

iCOOP KOREA will shed a glimmer of hope in Korean Society

Historically, co-operatives have operated democratically-controlled, economic activities with active member participation while successfully providing for their members. At the same time, they were able to set right directions for the society they are in. From the very start, iCOOP KOREA has based itself on its philosophy of honesty and trust, and valued the most member participation as they carried out a series of innovative and experimental policies and actions, letting the world know the importance of cooperation. iCOOP KOREA did not stop there, but constantly asked itself what it can do for our country and arduously sought answers.

The year 2010 was a very painful one. The impacts of unpredictable climate changes have ceaselessly caused trouble to countries across the globe including Korea. Last fall when the Korean cabbage price shot to an unprecedented 15,000 KRW, the Koreans were forced to rethink about the fundamental structure of the agricultural industry. It was then and there that the public’s attention flicked towards iCOOP’s direct trade and contract-based production systems that it has evolved for the past 20 years. The economy was getting ever more unstable due to the world-wide economic crisis, and rocketing prices of oil and produce. Once again, it was ordinary Koreans that had to bear the brunt of economic imparity and high prices. As has been the case in the past, however, iCOOP’s organizational and business capabilities have shone a glimmer of hope in the dark economic tunnel in 2010 again, and have successfully helped broaden iCOOP’s organizational and business horizons by leaps and bounds.

Only when consumer co-operative is able to garner the people’s participation beyond their own boundaries, they can realize their social values in the community. munity. mt the comwhen iCOOP began to lay the foundation for realizing iegasocial values. There is still a long way to go until we will be able to bring about or realiin eity. corner of ourasociety, buto go uood newliis that ouramembership has surpases. Tgo 1munewlimark. Business capinesscreated byg wtive member participation has given birth to NatesscDream stores. Theyg sscnuraj pa eco-friendly organic food stores, butoaip hast reinventing Tgomasovong munplacp has sharing,asolidarity and communication that re-inviuorates locessnd commuand facilitates social tiesicin 2010 ner ofhikes putopressesscrn the societyg munwhole, we will besoarner ofhikes puvegetes ls suchg m beean cabbage. Through a series of its policies such as direct trade, contract-based production, price sta- bilization funds and double rice price, iCOOP KOREA has brought fresh hope to producers while providing livelihood to its members. This positives waves are now flowing over the iCOOP KOREA threshold to reach other parts of the society.

In the spirit of co-operative pioneers, iCOOP leads by example in realizing social justice. In 2010, as part of its effort to fulfill universal welfare, iCOOP launched Free School Meal campaigns and provided meals made of eco-friendly food ingredients to all students regardless of their families’ income levels. In the process, iCOOP is helping to revamp unfair international trading frameworks by opening a window of opportunity for overseas producers and Korean consumers to unite with each other.

One of the most touching achievements that iCOOP has made in 2010 is the earnest start of the [iCOOP Eco-friendly organic food cluster] project. This project is unprecedented in that it is one exclusively driven by private contributions and will serve as iCOOP KOREA’s production and logistics base camp. It was again through member economic participation that this project has come into being and secured the land www.icoop.or.kr for construction, and the train will continue to chug forward fuelled by our members’s will power in the future.

iCOOP has long committed itself to promoting its co-operative movement, and has come to a new starting line. In line with the year 2010 theme, “the International Day of Co-operatives”, iCOOP KOREA will continue to do our utmost to make the world a better place and to shine a glimmer of hope to our country. I extend my deepest gratitude to members and all the people who support iCOOP KOREA.

iCOOP Association of Consumer Co-operatives(iCOOP KOREA) Chair Oh, Mi-yea

01 Part 1 Introduction

iCOOP KOREA’s iCOOP KOREA began with 6 local cooperatives in the Seoul-Gyeonggi area in 1997. Since History then it has contributed greatly in popularizing the consumer cooperatives movement in Korea, and its cooperatives membership has grown to 75 in 2010.

・ Jan. I Ownership hand-over completed on 5.94 million m2 wide primary land for “Eco-friendly organic 2010 food cluster” ・ Feb. I Nation-wide Signature Campaign by local co-operatives for resolution of “The Women Drafted for Military Sexual Slavery by Japan” issue I ICA Relief Fundraising for Haiti in Korea I Scholarship for Department of Co-operative Business Administration, Sungkonghoe University ・ Mar. I iCOOP KOREA receives Plaque of Recognition from Ganghwa Woori Village I Participates in “Korea-Japan 2,500km Walk with Terasita Takesi” in memory of independence activist Ahn Jung-geun ・ Apr. I Launches iCOOP office for Eco-friendly Free School Meal I Opens iCOOP Gyeongnam Logistics Center(specializing in eco-friendly produce) ・ May I 8th Suncheon Native Wheat Festival I Campaign to set up Stationery Banks in fair trade producer countries ・ June I Walking Activity on Goesan Eco-friendly organic food cluster land I Site Visit to Co-operatives in UK and Mondragon Group in Spain ・ July I Celebration Event for 88th “International Day of Co-operatives” I Briefing on Eco-friendly Organic Food Cluster for Goesan residents ・ Aug. I ICA/iCOOP Workshop on Development of Consumer Cooperatives in Asia I Signature and Fundraising for Newspaper Ads Campaign Against Cable Cars at Mt. Jiri ・ Sep. I Attending in 9th Regional Assembly of ICA Asia Pacific in China and 6th Asia Pacific Coop Forum (OH Mi-yea, incumbent iCOOP Association of Consumer Co-operatives Chairwoman and president of iCOOP Mutual Aid Society for Korean Agriculture delivers keynote speech) I Korea Certification Center for Eco-friendly Foods Inc. approved as “Gyeonggi-do Eco-friendly Produce Certification Center” I Promoters Meeting for iCOOP Seed Foundation(former iCOOP Share-Happiness Foundation) ・ Oct. I iCOOP members/producers/employees participates fundraising campaign to build Fair Trade Mascobado Sugar Mill at Panay, Philippines I iCOOP KOREA’s Co-op Festival ・ Nov. I iCOOP donates Sharing with Neighbor Rice at Goesan-gun(Chilseong-myeon) I Korean Eco-friendly Organics Accreditation Center Inc. designated as “Certification Organization for Organics Processing” I Site visit to Lega coop and ANCC in Italy(Roma and Bologna) ・ Dec. I Breaks ground for Fair Trade Mascobado Sugar Mill in Philippines I Campaign of Member bonds and Fund Raising for Stable Purchases from producers in 2011 I iCOOP Seed Foundation established and approved as non-profit foundation

・ Jan. I Inaugural assembly of iCOOP Association of Producer groups 2009・ Apr. I Symposium in celebration of ICA membership ・ May I World Fair Trade Day Festival in Korea I Opening ceremony for Suncheon Native Wheat Confectionary ・ June I Consecutive exhibition program of showing Documentary film, My heart hasn’t broken(tale of Ms. Song, a sex slavery of former Japanese Imperial Army), for local co-ops ・ July I Guest lecture of a mascobado sugar producer’s from Panay Fair Trade Center(the Philippines) I Establishment of the Council of Korean Cooperatives I International Co-operative Day 2009 Ceremony and Workshop ・ Oct. I Campaign for increasing Share Capital of 70 thousands members launched ・ Nov. I Events for celebrating the 50th Natural Dream store lauching (the Seminar and Festival on Native Wheat) / Attended to ICA GM in Geneva. ・ Dec. I Attended to the 43rd Meeting of ICA Committee on Consumer Cooperation for Asia and the Pacific in Pune(India)

・ Jan. I Name change from ‘Korean Solidarity of Consumer Co-operatives’ to ‘iCOOP Solidarity of 2008 Consumer Co-operatives’ ・ Feb. I Korea-Japan Symposium on the 10th Ramsar Convention and Biodiversity in Rice paddies I Founding of Center for KCOD Co.Ltd I Awarded Medal of Honor by the Ministry of Agriculture and Forestry ・ Mar. I Opening of the 1st Nature Dream store in Songpa district I iCOOP KOREA aired on KBS TV show, “Consumer Report” - “The Truth of Untruthful Foods” as the alternative ・ Apr. I Ian Mcpherson guest lecture I Grand rally against Korean-US Beef Agreement 02 ・ May I 14 Protests to amend the Korea-Us Beef Agreement in front of Cheongwadae (the Presidential Residence of the Republic of Korea) ・ Aug. I Establishment of Committee on the Eco-friendly Food Production Cluster ・ Sep. I Conclude agreement for inspection of mad cow diseases in Korean beef with Veterinary Medicine Department, Seoul Univ. I Press conference on the melamine incident ・ Nov. I Contribute to the selection of ‘Draft Resolution X.31 Enhancing biodiversity in rice paddies as wetland systems’ at the 10th Ramsar Convention ・ Dec. I Gain full membership in the ICA I iCOOP KOREA on KBS TV show, “Consumer Report” on food additives in hams as the alternative organization I iCOOP KOREA aired on MBC TV show, “MBC Prime,” on wise consumer choices and its influence on the market 2007・ Apr. I Opening ceremony of a logistics center in South Jeolla province ・ June I Consumer Monitors for Mad Cow Disease of US Beef ・ Aug. I Donation to Edagawa Korean School in Japan ・ Oct. I Symposium and Ceremony for the 10th Anniversary of iCOOP Solidarity Consumer Co-operatives ・ Nov. I Agreement on ‘Practice of Ethical Consumption’ with the ‘Worker’s Union in Bank of Korea’ ・ Dec. I Signing of MOU with Geosan local government for Eco-friendly Food Cluster investment I Participation in restoring Taean Coastline affected by oil spill I Donation toward meal service for North Korea’ children I Natural Dream’s “Hanwoo-Yechan” selected as the 1st organic produce-friendly restaurant

・ Feb. I Symposium on Social Agreement on Food Safety and Enhancing Korea’s 2006 Agriculture(venue:National Assemby Memorial Hall) ・ May I Participation in the national “Support for Native Rice Campaign” I Opening ceremony for iCOOP Institute of Consumer Co-operatives ・ June I 1st exchange of the rice paddies’ biodiversity research between Korean and Japanese NGOs ・ Aug. I Send ramen to victims of flood in North Korea ・ Oct. I Campaign against Korea-US FTA in Jeju island(33 local co-ops) ・ Dec. I A warded First Prize for ‘Distribution for Eco-Friendly Agriculture’ by the Ministry of Agriculture and Forestry and the Ministry of Environment

・ May I Preparatory committee launched for Korea Ceritification of Distribution for Eco-friendly food as- 2005 sociation ・ Oct. I The “10,000 Consumer Campaign for Korean Rice and Wheat’ jointly held in Seoul, with 10,000 consumers/citizens and 22 civic groups 2004・ Mar. I Purchase of land for the Joongbu logistics center in Goesan, Chungcheongnam-do ・ June I Donation to Ryong-cheon province, North Korea ・ Sep. I held a meeting for reading research papers about the ‘distribution certification system’ 2003・ May I 1st Suncheon Local Wheat Festival(held annually) ・ July I Selection of a pilot school for eco-friendly meal service with the Gwangju Office of Education 2002・ Jan. I Establishment of the Native Wheat Purchasing Fund ・ Feb. I Opening of 3 logistics centers in 3 regions(Ulsan, Jeju city, Damyang) ・ Apr. I Publication of “The New Consumer Cooperatives Movement” on iCOOP KOREA’s activities ・ Nov. I Establishment of Korean Association of Consumer Co-operatives; 1st iCOOP Festival(held annually) ・ Dec. I Business-School collaboration ceremony with Sungkonghoe(Anglican) University and Korean Solidarity of Consumer Cooperatives 2001・ Mar. I Restoration ceremony(turnout:250 members) ・ May I Introduction of automated payment service and CMS system ・ June I Name change from 21C Consumers’ Cooperatives to Korean Solidarity of Consumer Cooperatives ・ Sep. I 1st training session for member activists 2000・ Jan. I Reorganization of iCOOP KOREA as an association of consumer cooperatives and producer groups ・ June I 21Century Consumer Co-operatives registered as a corporation by the Ministry of Agriculture and Forestry ・ Dec. I Fire in one of the principal logistics center in the metropolitan area I An extraordinary board of directors’ meeting held to discuss restoration by loaning from coopera-

www.icoop.or.kr tives members and producers 1999・ Oct. I Standardization of 6 consumer co-op member business systems in the metropolitan area 1998・ Jan. I Introduction of ERP for iCOOP KOREA ・ Mar. I 1st general meeting for the ‘21Century Consumer Co-operatives’ ・ Oct. I Integration of the ‘order-supply’ process(Bu-cheon, In-cheon cooperatives) 1997・ Aug. I Preparatory committee created for Consumer Co-operatives in Seoul and ・ Sep. I Entered the purchase and supply business ・ Nov. I First edition of consumers’ cooperatives newspaper published 03 Part 2 Ethical Consumerism in practice by iCOOP KOREA

Ethical Consumerism in practice by iCOOP KOREA

inside of iCOOP Korea’s ‘Natural Dream’ store

Ethical If consumption is considered an act of economic voting, the cash or credit cards in our Consumerism: wallet are ballots. Where would you cast your vote? Purchasing chocolate produced from child labor contributes to the power and prosperity of that company. Supporting protect yourself, producers honest to consumers and nature alike, enterprises that respect their employees your neighbors, and consider the well-being of animals and the global environment, and promoting ethical and the world production can all become possible through ethical consumption. Ethical consumption is a small but easy gesture for sustainability.

Ethical iCOOP KOREA practices ethical consumerism based on three core values:respect for Production people and labor, food safety, and agriculture and the environment. improved by Respect for people and labor Respect for • People and Ethical Monetary contribution from members is spent toward economic Labor projects that meet members’ requests, and the profit is reinvested Consumption Ensuring Agriculture Food and the in new projects. Safety environment • Ethical consumption objects labor exploitation and products made by exploiting labor. [ Diagram of Ethical Consumerism basis by iCOOP KOREA ]

04 Ensuring food safety iCOOP KOREA promotes production and consumption of safe foods made without the use of toxins like agrichemicals or harmful food additives. We lead the campaign to improve food safety standards through legal and structural measures.

Agriculture and the environment iCOOP KOREA protects agriculture for the coexistence of rural and urban communities. We promote the consumption of home-grown wheat, eco-friendly products, reusable grocery bags, reduced use of fossil fuel to prevent global warming, etc. to protect you, our neighbors, and the environment.

1 _ Contract signing ceremony for ethical consumption 1 2 (Bank of Korea Worker’s Union Consumer Coop) 2. Studying organisms in rice fields

Practicing Going green at the market Ethical According to eco-friendly store policies, Natural Dream stores use less or no plastic Consumerism bags by encouraging the use of recyclable grocery bags and recycled boxes. Installation of bicycle stands encourages consumers to leave their cars at home.

3 _ Candle Night Recycling packaging material 4 _ iCOOP KOREA membership’s ‘Ethical Consumption Action’ iCOOP KOREA recycles resources and saves costs by collecting packaging material such campaign-Using Shopping as Styrofoam boxes, cake plates, condiment and juice bottles, egg carts, etc. Basket

3 Going green in local communities Member co-op societies regularly open markets to local residents can share products they do not use with each other. Every fourth Friday from 8:00 to 10:00 PM, members hold the Candle Night Campaign to conserve electricity.

4 Ethical Consumerism Campaign - Member Participation Campaign

www.icoop.or.kr As part of its effort to promote ethical consumption, iCOOP KOREA has collaborated with professional activists on ethical consumerism, local community commissions and the Wrapper Recycling Commission since August 2010 in planning and carrying out ethical consumption campaigns, and delivered on its “humble promise” to protect the environment in daily lives by newly setting up the member participation section on the iCOOP KOREA website.

05 Part 3 iCOOP KOREA’s Business

iCOOP KOREA’s Business

Natural Dream Store operated by Seongnam-Bundang Consumer Coop

iCOOP KOREA’s Centralization of businesses and differentiation of Business the organization System iCOOP KOREA increased access for members and stabilized management by consolidating member co-ops’ distribution business into regional distribution centers. The 70 regional member co-op societies work independently and democratically at the workplace and within the local community. [ Logistics chain across the country ]

Dongbu delivery center Direct charge system Seobu delivery center Central logistics center Gwacheon delivery In the Direct charge system allows the use of co-op budget pooled from monthly membership center fees. This guarantees that local co-op societies are run by co-op members and encourages

Cheonan delivery center the use of co-op budgets, ultimately stabilizing production and making products affordable Joongbu logistics center for everyone.

Gyeongbuk logistics center

Jeonbuk delivery center 1 A national logistics network

Gyoengnam logistics (7 logistics centers, 8 delivery centers) Gwanju logistics center center The national logistics network dramatically reduced logistical Busan delivery center Jeonnam logistics Mokpo delivery center center Jinju delivery costs by directly connecting producers and consumers. This center resulted in a more stable product supply, fresher products, lower production costs, and increased consumption of eco-friendly agricultural produce. The logistics infrastructure allows popularization of the co-op movement through the

Jeju logistics center establishment of co-op societies in smaller cities. 06 Member convenience system (stabilization of order, delivery, and payment systems) iCOOP KOREA is the first consumer cooperative in the country to open an on-line store, allowing members to conveniently order products from home. Along with more women entering the workforce, we have expanded our delivery days to five days a week plus Saturday On-line store web site and adopted the CMS(Cash Management Service) payment system to increased convenience and avoid excess credit card fees.

Food security system 1 _ Central logistics center in Gunpo iCOOP KOREA is building a food security system by encouraging organic food consumption 2 _ Natural Dream Bakery in Dangsan not only in member families but also in our stores and restaurants, as well as schools 3 _ Natural Dream Baker in and nursery cafeterias. Yangcheon

Natural Dream Natural Dream fosters a safe dietary culture stores–one step Natural Dream is an eco-friendly consumer cooperative store, based on the belief that closer to our eating locally serves your body best. Our mission is to supply reliable restaurants that use fresh produce safe from agrichemicals and various artificial additives. daily life. iCOOP’s Natural Dream stores come in many forms You can find Natural Dream stores in all over the country, especially, Korea’s major

2 cities including Seoul, Busan, Gwangju, and Daegu in the form of bakeries, cafeterias, grocery stores, and complex retail markets. We are working to expand the number of stores to reach more consumers.

It benefits all our members such as consumers, 3 producers, and local communities iCOOP consumer cooperative have 49 stores opened by 41 member co-ops as of Feb. 2010. More stores lead to more members and profit, contributing to stabilizing prices and sales, benefiting members and guaranteeing incomes of producers. These stores also create more jobs and vitalize local economies.

◉ iCOOP Premium Product Brands - Natural Dream Natural Dream is iCOOP KOREA’s trademark brand that improves food safety standards and marked by scarcity, high quality, and social value.

◉ More than just a card – the Natural Dream membership card Co-op members receive special discounts and can accumulate points with each purchase in Natural Dream stores. It’s more than just a membership card - it comes with delightful surprises! www.icoop.or.kr ◉ iCOOP KOREA product information – Natural Dream Story Natural Dream Story is a bi-monthly publication introducing iCOOP KOREA’s unique and safer products, various iCOOP recipes, and stories of our producers.

◉ i-COOKAll Products at a Glance - Product Handbook i-COOK iCOOP KOREA publishes a monthly product handbook to provide its members with a variety of information, encompassing in great detail the prices, specifications and distinctive features of all its products, new products, and recipes utilizing iCOOP products. 07 Part 3 iCOOP KOREA’s Business

The Eco-friendly Eco-friendly organic food cluster Organic Food The “Eco-friendly organic food cluster” is a food processing complex where logistics Cluster and centers and iCOOP KOREA’s producing and processing companies will gather, in order to provide safe and affordable products to consumers and guarantee stable production iCOOP Valley and income for producers. Project – a new ※ The Organic Food Cluster will facilitate the popularization of iCOOP’s consumer cooperative future of movement and aims to reach 1 million consumers(500,000 members) and 1 trillion KRW(approx. cooperation and 785 million USD) in sales by 2015. coexistence iCOOP Valley The iCOOP Valley, located near the Eco-friendly Organic Food Cluster, is an ecological space providing eco-friendly orchards, stock farms, ponds, wildflower gardens, herb farms, an eco-friendly town and a school, working and living quarters.

iCOOP KOREA’s Eco-friendly Organic Food Expected outcome Cluster aerial view • Increased price competitiveness through reduced production and distribution costs • Higher product safety and quality through a food development research center • Creation of joint brands and share information on public interest, confidence, and effective management as an eco-friendly food production complex • Create added value by developing tourism products

◉ iCOOP Valley plan • As of 22 Mar. 2011, land purchase completed on a total of 6,132,250m2-wide land(approx. 1.85m pyeong) • Eco-friendly organics cluster to include industrial complex land[221,983m2(approx. 67,000pyeong), 35%], supporting facilities[71,975m2(approx. 20,000pyeong), 11%] and public facilities(including parks and greenland)[334,539m2(approx. 100,000pyeong), 53%] • Over 30 main processing companies specializing in eco-friendly organic food to be relocated to the Cluster industrial complex from across the nation by Dec. 2012.

◉ Key Developments • Dec. 2007 I Signing of MOU with Geosan-gun government for the Eco-friendly Organic Food Cluster • Jan. 2008 I Cluster investment promotion • July 2008 I Workshop on Eco-friendly Organic Food Cluster • Aug. 2008 I Eco-friendly Organic Food Cluster Committee inception • Dec. 2008 I 1st Eco-friendly Organic Food Cluster Committee training session in Japan • Jan. 2009 I 2nd Eco-friendly Organic Food Cluster Committee training session in Japan • Apr. 2009 I Beginning to secure land for the Cluster(currently secured 90% of required land) • Oct. 2009 I Walking on the land of our cluster in Annual Members’ Festival in Goesan • Nov. 2009 I Cluster Execution Committee’s 1st visit to Europe • Dec. 2009 I Press Conference on Eco-friendly Organic Food Cluster • Jan. 2010 I Ownership hand over completed on main lands for Eco-friendly organics cluster • Mar ~ July 2010 I Cluster Industrial Complex Plan (draft) developed(four times of advisory meetings held) • June 2010 I Walk for Cluster Land by iCOOP members • July 2010 I Submission of approval request for Cluster Industrial Land to Chungcheong- buk-do local government I Resident Briefing on Cluster Industrial Complex Plan • Feb. 2011 I Cluster Industrial Complex Plan evaluated by vetting committee, and notification of approval

08 Part 4 iCOOP KOREA’s Products

iCOOP KOREA’s Products

1st Workshop of the Product Dealing-decision Committee in 2010

iCOOP Products: Consumer cooperative members constitute the “Product Dealing -decision Committee,” a mother’s choice through which iCOOP produces products, based on members’ needs, and chooses the best products based on quality, price, and confidence.

1 iCOOP KOREA’s standards for product development

1 _ Careful selections made from a mother’s point of view.

2 _ Priority on information transparency. 2 3 _ Raising social standards on food safety through iCOOP KOREA brand products.

4 _ Contribution to members’ daily life.

◉ 1 _ “Pork Dream” frank(sausage) Develop safe snacks for children without the use of artificial additives 2 _ Launching low-carbonated Fruit in your Ice, What The Cacao Peanut Ball, organic waffles made from local wheat soft drink ‘COOP Coke’ ◉ Fruit salad dressing and ketchup planned and produced by Product Dealing - decision Committee members kiwi dressing, strawberry dressing, Fresh Tomato Ketchup

◉

www.icoop.or.kr The only sausage in Korea made without any artificial additives Sausage franks, smoked ham

◉ Fruit Juice-enhanced, Safe and No-Additive Soda - iCOOP COLA Soda drinks that best go along with oily foods like the eco-friendly Woori (Korean) Wheat Pizza. iCOOP KOREA has independently brought into being iCOOP COLA that comes without phosphate, synthetic food dyes and caffeine. iCOOP COLA is an excellent mixture of local citrus, grape con- centrates, Vitamin C, citric acid (non-GMO), organic sugar and natural lemon-lime flavour, and boasts a 2.5 carbonic acid level, lower than that of other sodas out on the market. 09 Part 4 iCOOP KOREA’s Products

Safe, trustable 1 iCOOP KOREA stabilizes popular product prices with an effective food for logistics infrastructure and the co-op funding system. As a result, everyone every Korean will have access to safer foods and better health.

A win-win pricing 2 In iCOOP KOREA’s pricing system, the consumers will decide on the system satisfying criteria for pricing. Producers will profit according to sales, but their income will be guaranteed to a certain level. This pricing system both producers satisfies both parties and eventually a new mechanism in the market. and consumers

Production and Reliable information from the farm to your table, brought to you by distribution Center for Korea Certification of Distribution for eco-friendly foods association makes process sure that no imported or ordinary agricultural products enter Korea’s eco-friendly food production and distribution chain. The “A Mark”(distribution certification code) allows approved by the consumer access to information on the producer, cultivation and distribution process, “A Mark” and other essential information online.

The Production to Distribution Verification System 1 _ Touring the site of origin • Cultivation 2 _ Consumer-Producer - Inspect the entire process from sowing to harvest roundtable discussion - Regular update of expected harvest outcome during cultivation - Inspect final harvest outcome - Inspect shipment amount to each customer(partner company) - Control number of total and issued certification labels - Provide useful information on producers(advertise) to customers through the A Mark system • Distribution - Real-time warehouse management of distribution centers based on recorded shipment amount - Ingredients for processed food certified by inspecting processing cycle and output of processed foods - Verify shipment amount to other customers - Mobile texting system for immediate problem report • Retail Stores - Real-time sales information update to the A Mark System - Product details available to distributors through the A Mark System • Consumers - Distribution certification number allows consumers to look up necessary information on the producer, cultivation, distribution, etc. on purchased products - Consumers able to immediately report false or illegal distribution information without disclosing personal information

10 A Mark • Patented name:Organic Farm Product Chain Protection Method • Registration number:10-0851180 • Registration date:Aug. 1, 2008 • Certification management:Printed by the Korea Mint Corporation(protected from copy and alterations)

※ Center for KCOD was designated as a Private Production Certification Facility(No. 40) on Feb. 28, 2008. Distribution Certification System by KCOD(Korea Certification of Distri- bution for Eco-friendly Foods Association) Proved Excellent with A-Mark Center for AFT(Korea Certicification of Distribution for eco-friendly foods Association) estab- lished by the AFT has been selected by the National Agricultural Products Quality Management Service as a top-class “Gyeonggi-do Strategic Certification Organization for Eco-friendly Pro- duce. The Strategic Certification Organization is a policy pursued by the Korean government with an eye to scaling up and specializing certification organizations while minimizing fraudulent certi- fications. Center for AFT joined the ranks of strategic certification organizations thanks mainly to the rigorous application of its distribution certification system(A-Mark), and its post-certifi- cation supervision activities carried out more than three times a year. Such thorough management procedures and standards have helped it earn recognition even from outside the organization. Designated as Certification Organization for Processed Organics Center for AFT, also, has been named the 7th certification organization for processed organics by the Ministry for Food, Agriculture, Forestry and Fisheries and started to “certify processed organics”.

Gaining trust Transparency and strict management and surveillance of information are at the core of through a strict gaining trust. This process becomes the base for producing safer products. supply contract, production order supply certification Inspection for Storage in Eco-friendly agrichemical distribution center Consumer system and certification remains (unannounced (co-op members, (production site) (2 weeks before inspection for meal service) transparency distribution) agrichemicals)

3 step certification system More than 73 different physico-chemical test are conducted on primary agricultural and stockbreed- ing products by NAQS(National Agricultural Products Quality Management Service) and other reliable facilities. The webpage discloses results of scheduled and unannounced agrichemical inspections.

www.icoop.or.kr Numerous physico-chemical inspections for food safety • Canned tuna:1 inspection/year for dioxin(inspect ingredients before canning) • Fish:2 unannounced inspections/year for heavy metals • Pork, chicken:2 inspections/year for antibiotics • Sesame oil:4 inspections/year for benzo(a)pyrene • Coffee:inspections for ochratoxin upon importing raw materials • Chips(potato, etc.):2 inspections/year for acrylamide • Pastry:2 inspections/year on trans fat 11 Part 5 iCOOP KOREA’s Activities

iCOOP KOREA’s Activities

Press interview for the beginning of ‘Eco-friendly and Free School Lunch’ movement

Safe food Promotion movement for Eco-friendly and campaign for free school lunch 2010 our family and iCOOP KOREA has been playing the key role in the promotion movements for Eco-friendly neighbors and free school lunch, which promotes not only to deliver healthy foods for school students but also to support agriculture, environment and economy of local communities. Since establishment of the Seoul headquarter for Promotion Movement of Eco-friendly and free school lunch on Feb.18th 2010, Campaign for petition of 7.5 million citizens and Social Agreement declaration for Eco-friendly and free school lunch have been carried on. In April, iCOOP KOREA held an event to celebrate the launch of “the iCOOP Campaign Headquarters for Eco-friendly Free School Meals”, where it announced a declaration that emphasized the importance of putting eco-friendly free school meals into pratice. This is only one example of iCOOP’s many social movements to encourage ordinary people to get their hands on eco-friendly produce.

iCOOP KOREA Puts Members’ Benefits First Price Stabilization on Vegetables such as Korean cabbage, and Dual Rice Price As the market price for Korean cabbages was going well over 10,000 KRW, iCOOP KO- REA used its Price Stabilization Fund to bring the cabbage price down to the 2,000KRW range, and members could purchase kimchi cabbages for only 1,600KRW. When cab- bages prices shot through the roof, a series of iCOOP’s production policies such as direct trade between consumers and producers, contract-based farming and price compen- sation for yeilds, have proved excellent in counter-balancing the soaring cabbage price. In the process, iCOOP had come under the public and media limelight while showing the government and Nonghyup how agricultural polices should be geared toward encour- aging cooperation between consumers and producers. 12 a cross-country on foot for peace iCOOP KOREA Sponsors Peace Walk In Tribute to the with Terashita Takeshi 100th Anniversary of Ahn Jung-geun’s Demise Retiring in Dec. 2009 after 19 years with a co-op in Tokyo, Japan, Mr. Terasita Takeshi with his ever-lasting respect for Independence Patriot Ahn Jung-geun wished to celebrate the 100th anniversary of Patriot Ahn’s demise in his own unique way. Mr. Takeshi had decided to go on a pilgrimage on foot from Japan to Korea, harbouring a humble wish that his 2,500km-long and 90-day journey would help forge a peaceful relationship between the two countries. Park, Doo-heon, a son of Min, Kyung-ja, the Chief Director of iCOOP JinJu Branch, accompanied Mr. Takeshi from Busan to Seoul with over 160 iCOOP members from 36 local branches joining the Peace Walk for different sections of Mr. Takeshi’s trek. This event had raised Korean members’ awareness of the peace philosophy held dear by Patriot Ahn, Jung-geun. In addition, the media coverage of the Peace Walk went a long way towards promoting iCOPOP’s solidarity activities in the society.

Solidarity Activities for Resolution of “Comfort Women” issue(Collaborating Organization:the Korean Council(for the Women Drafted for Military Sexual Slavery by Japan))

1 _ Hosts two Wednesday Demonstrations in 1st half of the year

2 _Participates in 500,000 Signature Campaign for legal resolution of “Comfort Women” issue

3 _ Participates in 100-Person Declaration for legal resolution of “Comfort Women” issue

4 _ Provides supplies for 20th anniversary of the Korean Council/Sponsors Fair

In 2010, in memory of the 100th anniversary of the 1910 Korea’s Forceful Annexation Treaty by Imperial Japan and as part of its effort to legally resolve the issue of “Comfort Women” drafted for colonial Japanese soldiers, iCOOP organized Wednesday Demonstrations, participated in the 500,000 Signature Campaign and the 100-Person Declaration, and provided supplies for the 20th anniversary of the Korean Council/Sponsors Fair. A series of social participation activities has made positive contributions to boosting the social responsibility image of iCOOP KOREA, which in turn served as a springboard to expand its social responsibility programs into other areas.

Participating Wednesdays demonstration for problem solving on Military Sexual Slaves for the Japanese www.icoop.or.kr Imperial Army

13 Part 5 iCOOP KOREA’s Activities

Training iCOOP KOREA provides educational support for local co-op officials to cultivate better, activists through democratic management skills and understanding of the cooperatives movement. In member 2010, 6,172 members participated in various educational programs. education Activist trainings in local co-ops members - iCOOP KOREA 101 The activist training program includes about cooperative movements and iCOOP KOREA’s 1 policies.(In 2010, 1270 activists from local co-ops participated in iCOOP 101)

Training for directors and head administrators A yearly training program is offered to cultivate leadership of local co-ops and better

2 office management skills for head administrators.(In 2010, 100 activists from a total of 52 local co-ops attended the training course for board directors and director generals)

Training for chief directors Chief Directors must complete a special course on cooperative movements, democratic

1 _ Chief Director training program control, management on the director level, etc. and be certified by passing a test.(A total 2 _ Ansan Consumer Coop’s 5th of 6 board member courses have attracted 525 participants from across the nation from Village Meeting at Prugio apartment complex 2008 to 2010. 325 of them earned certifications) iCOOP College iCOOP College is an advanced course for the activists having completed the board member course. iCOOP College is comprised of three classes: the business administration course aimed at enhancing managing leadership of member activists; the iCOOP academy focused on refining understanding and knowledge in social science; and the liberal arts course

A Variety of Lectures and Workshops iCOOP KOREA organized diverse lectures and workshops such as feminism lectures, workshops for local activists and commission-specific workshops, etc. in order to reinforce the capabilities of iCOOP member activists.(In 2010, a total of 114 lectures and workshops drew over 4,600 iCOOP member activists)

◉ The iCOOP KOREA Review Contains information on iCOOP KOREA’s business projects and activities and helps local co-ops and members to gain a deeper understating of iCOOP KOREA.

◉ i-zine(www.icoopweb.or.kr) Published its 133rd issue in June 2009, Updated on the 1st of every month, i-zine is a humorous and heart warming online magazine offering stories from our everyday life and useful information.

14 iCOOP KOREA on 2011 Action Status on iCOOP KOREA’s rice field Environmental ecosystem research committee and Agricultural In commemoration of the 5th anniversary of its rice field ecosystem research, iCOOP Protection KOREA with over 50 of its members has been conducting various studies on paddy- field creatures in Korea. This year iCOOP KOREA is planning to expand its research to paddy fields in Bongha village, Namwon and Yesan along with researches on main iCOOP granaries such as Hongseong, Gosan, Buan and Sangju. The focus of these studies is to have a clear understanding of diverse creatures living in Korea’s paddy fields and of the ecosystem of weeds growing around paddies. Rice field ecosystem research has been considered too a professional arena for member activists to join, so iCOOP KOREA has opened “the Fun Paddy-field School” for members and children, in which participants are given an opportunity to become a farmer themselves, visiting paddy fields and experiencing the ecosystem firsthand. This program is giving members a rare opportunity to grasp the importance of paddy farming, the environment and living creatures in it. The 6th Korea-Japan Joint Rice field Ecosystem Research Exchange is scheduled to be held in Hongseong from July 21-July 23 under the banner of “Back to Paddy Field Full of Life”. Discussions at this event will focus on paddy-field creatures and organic agriculture with the agenda including the research campaigns that promote farmers who practice biodiversity-oriented methods and environmental agriculture; and pleasurable changes at paddy field that help connect cities with agricultural communities. A fund-raising event will also be held for environmentalists working hard at the disaster- stricken Miyagi prefecture, Japan.

3 The 10th Ramsar Convention, a new milestone for Korean wetlands preservation • Rediscovering the value of rice paddies and wetlands for biodiversity • Testing new rice cultivation methods to contribute to biodiversity • The adoption of Draft Resolution X.31(“Enhancing biodiversity in rice paddies as wetland 4 systems”) at the 10th Ramsar Convention

Adoption of Rice paddies and Wetlands Resolution was a great leap forward for Korea and Korean Wetlands protection movement Around 4,000 government representatives, private organizations, international organization 3 _ Asia preparatory meeting for officials from 140 countries worldwide participated in the 2008 Ramsar Convention. The the 10th Ramsar Convention www.icoop.or.kr (Bangkok, Thailand) most meaning for achievement for Korea, the hosting country, was the adoption of Draft 4 _ 10th Ramsar Convention Resolution X.31 on “Enhancing biodiversity in rice paddies as wetland systems”(hereafter press conference(Changwon, South Gyeongsang Province) “Rice paddy resolution”) The Korean and Japanese governments and NGO groups from both countries submitted the resolution, and its adoption indicates the recognition of rice paddies as wetlands that coexist with humans.

15 Part 5 iCOOP KOREA’s Activities

Rice field organism research by “Gyeori” (rice field and wetlands research group)

Gyeori’s contribution to the Ramsar Convention and the adoption of the Rice paddy resolution The submission of the Rice paddy resolution was the result of exchange and cooperation of Korea and Japan’s government and NGOs. iCOOP KOREA has worked with other Korean NGOs for the last three years to raise awareness on wetlands and for the adoption of the resolution. Through sharing research results on rice field ecology in Korea and Japan, the two countries have stressed the importance of Asian rice paddy fields since 2006 and carried out pilot eco- agricultural methods on rice fields to enhance biodiversity. iCOOP KOREA’s rice field ecosystem research committee, Gyeori was able to confirm more than 150 aquatic organisms and 158 plants. The result presented as supporting data for the need to adopt Draft Resolution X.31.

◉ Major achievements of iCOOP KOREA’s rice field ecosystem research committee, Gyeori • Jan. 2008 I Participation in Ramsar Convention Asia regional meeting, submit pro- posal for the Rice paddy resolution • Feb. 2008 I Organize a joint workshop on biodiversity in rice paddies with Korean con- sumer co-operatives, environmental and farm groups • Feb. 2008 I Korea-Japan symposium on biodiversity in rice-paddies and the Ramsar Convention • Apr. 2008 I Educate members of the Korean Ramsar NGO Network(Korean con- sumer co-ops, environmental and farm groups, etc.) • Aug. 2008 I Participation in the 3rd Korea-Japan research on biodiversity in rice paddies(in Japan) • Oct. 2008 I Participation in the World Wetlands NGO Conference • Oct. 28 ~ Nov. 4, 2008 I Participation in the 10th Ramsar Convention and adoption of Rice paddies and Wetlands Resolution

◉ Rice production through new cultivation method to enhance biodiversity in rice paddies: “In the Rice Fields” iCOOP KOREA restores the ecosystem by fostering an environment that allows many rice field organisms to thrive. iCOOP also supplies its members with high quality rice from biodiversity promoting cultivation methods.

◉ PR Efforts to Raise Awareness of Wetlands The iCOOP KOREA’s rice field ecosystem research committee has organized lectures for local communities, and collaborated with Daegu MBC, a broadcasting company, to create a TV program on paddy-field living creatures, raising public awareness of wetlands.

16 10,000 Consumer Campaign for Korean Rice and Wheat

Promoting Korean agriculture by consuming Korean native rice and wheat iCOOP KOREA continues campaigns to increase the consumption of Korean native rice and wheat. The “10,000 Consumer Campaign for Korean Rice and Wheat” was the key event of our efforts to support Korean agriculture. From the south-most city in Korea Haenam to Seoul, iCOOP marched with a cow-pulled cart for 800 kilometers for an entire month, asking everyone on the way to support Korean agriculture, rice, and wheat. In cooperation with the city of Suncheon, iCOOP KOREA is launching campaigns to increase the production and consumption of Korean wheat while aiming for a 3% supply of domestically grown wheat in the market. The Suncheon Local Wheat Festival first opened in 2003, and has become a yearly event in May ever since. All Natural Dream stores across the country 1 _ Marching from Haenam to Seoul with a cow-pulled cart sell healthy bread made from Korean native wheat. Furthermore, increased production 2 _ Korean native wheat Festival of native wheat protects Korean agriculture and the environment by releasing oxygen in commemoration of the Grand Opening, 50th ‘Natural and absorbing carbon gases, thereby preventing global warming. Dream’ store ◉ Support Native Rice Campaigning progress 1 • Dec. 2004 I Collect donations and signatures in the Support Native Rice Campaign • Feb. 2005 I Declaration on supporting Korean native rice and wheat • Sep. 2005 I Simultaneous campaigning across the country to support Korean rice and wheat • Oct. 2005 I “10,000 Consumers Campaign” to support Korean rice and wheat • Nov. 2005 I Review workshop to evaluate the “10,000 Consumers Campaign and plan for future events 2 I Participation in the National Farmers Rally against the National Assembly’s ratification on importing rice • Apr. 2006 I Campaign against participation in public sales of imported rice • May 2006 I Public disclosure of the list of companies distributing imported rice and campaign against market sales • Aug. 2006 I Press conferences in 21 regions against the Korea-U.S. FTA and importing rice, campaign for full disclosure of the distribution process on imported rice • Sep. 2006 I “Consumers promote native rice” campaign against imported rice www.icoop.or.kr Suncheon Local Wheat Festival Every May, iCOOP KOREA is busy preparing for the Suncheon Local Wheat Festival to promote the joys of consuming Korean native wheat. The Suncheon Local Wheat Festival hosted by iCOOP and supported by the city of Suncheon, offers various activities and food samples to advertise the excellent quality of home grown wheat.

17 Part 5 iCOOP KOREA’s Activities

iCOOP KOREA’s What is ‘Fair Trade’? Fair Trade Fair trade is an alternative trade movement to buy goods directly from producers in third- world countries at a fair price that supports producers’ socioeconomic self-sufficiency and sustainable development. Fair trade emphasizes trade based on mutual respect and communi- cation, and works on the principles of transparency and environment friendly production.

iCOOP KOREA’s fair trade principles iCOOP KOREA supplies products that are hard to produce in Korea(Coffee, Cacao, Sugar cane, Olive oil, black pepper, etc.) to its members through fair trade. iCOOP KOREA is against child labor, and strives to support self-sufficiency of our producers in third world countries.

iCOOP KOREA’s fair trade products Since December 2007, iCOOP KOREA has been supplying various products made from raw materials imported by fair trade, starting with coffee beans from East Timor. iCOOP KOREA’s fair trade products origin date of initial supply East Timor fair trade coffee(tea bag form) East Timor Dec. 7, 2007 Natural Dream chocolate Columbia Feb. 04, 2008 set No.1 and 2 “What The” Cacao peanut snack 50g Columbia Feb. 11, 2008 East Timor fair trade Coffee East Timor Apr. 22, 2008 (instant coffee & beans ) FLO soccer ball(featured product) Pakistan Apr. 28, 2008 Instant ice coffee mix Columbia July 8, 2008 (from fair trade coffee beans certified by FLO) Natural Dream instant coffee mix(flavors:mocha & black) Columbia Aug. 2008 (from fair trade coffee beans certified by FLO) Fair trade chocolate 58%, 70% 40g(renewal) Columbia Nov. 11, 2008 Mascobado(certified by FLO) Philippines “Cocodream”(cocoa powder) Columbia Fair trade instant coffee 100g(certified by FLO) Columbia Dec. 16, 2008 Fair trade extra virgin olive oil Argentina Mar. 30, 2009 (certified by IMO Fair for life) Fair trade black pepper 50g Nepal Dec. 2009 Fair trade black pepper whole Nepal Nov. 2010 Palestine olive oil Palestine May 2011

With children from coffee farm village, Rottuttu (East Timor)

18 ◉ East Timor fair trade coffee iCOOP KOREA supports economic independence of East Timor. 400 KRW per box of coffee sold goes toward farmers and children in hunger and poverty due to ongoing internal warfare.

◉ Mascobado(Traditionally-produced black sugar at Panay island, Philippines) The Mascobado project puts to work impoverished farmers, laborers and urban women, making great contributions to poverty eradication and community development at Panay island, the second poorest area in Philippines. One Mascobado pack include 200 KRW worth of Fair-Trade fund.

◉ Fair trade instant coffee iCOOP Arabica, a freeze-dried instant coffee, has obtained the FLO(Fairtrade Labelling Orga- nizations International) certification and organic certification. With the trade network with the FNC(Faderacion Nacional de Cafeteros de Columbia, or National Federation of Coffee Growers of Columbia) based on fair prices, iCOOP Arabica instant coffee supports producing farmers.

◉ Natural Dream dark chocolate made from fair trade cacao iCOOP KOREA has concluded an agreement with National de Chocolate and the producer group to distribute chocolate made from cacao in an eco-friendly and child labor-free way.

◉ Fair trade extra virgin olive oil Argentina-produced, compressed organic olive oil, which has won the Swiss IMO Fair-for-Life Fairtrade Certification, and the Palestine-originated, compressed organic olive oil are traded directly with the Interrupcion of Argentina and the Canaan Fair Trade of Palestine, fairtrade olive oil producers that value fairtrade, organic farming and sustainability.

◉ Fairtrade Black Pepper Ground/Black Pepper Whole The Spicy Home Spices (SHS) and the KTE (Kanchenjunga Tea Estate), Nepalese processed pepper producers, offers fair prices to pepper farmers while providing safe jobs to urban women who do not enjoy much opportunity for education and employment.

1 2 3 1 _ Panay Fair Trade Center in Panay(Mascobado origin), Philippines 2 _ Columbia Coffee farmer 3 _ Fair-trading Black pepper female producers in Nepal

◉ iCOOP’s Fair Trade History • Dec. 1, 2006 I Fair Trade forum held by iCOOP Institute of Consumer Co-operatives • Apr. 2007 I Establishment of the Fair Trade Committee • June 2007 I Member survey on fair trade preferences • Sep. 10 ~ 14, 2007 I Two staff members sent to the Panay Fair Trade Center in the Philippines • Oct. 2007 I Submit request for FLO license. • Dec. 4 ~ 10, 2007 I Visit to Rottuttu village in East Timor • Dec. 2007 ~ Jan. 2008 I Acquire FLO license • www.icoop.or.kr Jan. 28 ~ Feb. 9, 2008 I Visit farmhouses in Colombia • May 5 ~ 8, 2008 I Second visit to the Panay Fair Trade Center • May 10, 2008 I Participation in Korea’s International Fair Trade Day event • May 20, 2008 I iCOOP Institute of Consumer Co-operatives symposium celebrating the 2nd anniversary of International Fair Trade Day • May 9, 2009 I Participation in the International Fair Trade Day Festival in Korea • June 9 ~16, 2009 I Visit SHS in Nepal

19 Part 5 iCOOP KOREA’s Activities

• July 7, 2009 I Held guest lecture of a mascobado sugar producer’s from Panay Fair Trade Center(in Philippine), Ceremony of Ethical consumerism Declaration and Fair trade Agreement among members. • Oct. 30 ~ 31, 2009 I 1st Walking Fair Trade • Jan. 13, 2010 I “Fair Trade Promotion Commission” renamed as “Fair Trade Commission” • May 8, 2010 I Korea Festival on International Fair Trade Day • May 10 ~ 14, 2010 I Site Visit to KTE, Nepalese Pepper Producer • Oct. 29 ~ 30, 2010 I 2nd Walking Fair Trade • Nov. 29, 2010 I Presentation on fair trade at Asia CSR Entrepreneurs Conference • Nov. 30 ~ Dec. 4, 2010 I Visit to Ground-breaking Ceremony for Panay AKC Mascobado Sugar Mill, Philippines

※ Every May, iCOOP KOREA takes part in Korea’s International Fair Trade Day events with various Korean fair trade associations.

1 _ With Nepalese fair trade black pepper producers 1 2 2 _ fair trade black pepper- producing area

Current Status on Fair Trade Fund products 2008 2009 2010 coffee(400) 13,356,000 17,914,400 31,405,200 Mascobado(200) 1,227,000 9,943,900 14,031,800 chocolate(20) - 1,155,900 2,552,160 Pepper(100) - - 613,200 total 14,583,000 29,014,200 48,602,360 (unit:KRW)

◉ Accumulated Total of Fair Trade Fund(92,199,560 KRW) Fair trade fund to be expanded to support pepper ground, dark58% & dark 70%, black pepper ground and Palestine olive oil(Mar. 2011)

◉ Rotutu Villiage, East Timor 30,000,000KRW:Repair trucks and libraries/books being purchased

◉ Philippine AKC Producers Cooperative 20,000,000KRW(180million):Assistance for building AKC Mascobado Plant(Projects in East Timor and Philippines to be completed in 1st half of 2011)

◉ Fundraising for AKC Mascobado Sugar Mill in Panay, Philippines • Period:one month in Oct. 2010 • Fund raised:180m KRW • Contributors:7,109people(members+producers+employees) • Expected completion date:June 2011

Fair Trade Turnover of iCOOP KOREA in 2010 • 2010:1,900,000,000KRW • 2009:1,300,000,000KRW • 2008:500,000,000KRW

20 iCOOP KOREA iCOOP KOREA was the first to gain membership in and international the ICA among Korean consumer co-operatives co-operatives iCOOP KOREA gained full membership of the ICA in December 2008. With the support of the ICA, iCOOP KOREA will now be able to: A. develop principles and values of co-ops in South Korea and around the world B. Have increased international exchange and collaboration for the development of the cooperatives movement

ICA/iCOOP Workshop for Development of Asia Consumer co-operatives The ICA/iCOOP Cooperative Workshop on Development of Consumer Coperatives in Asia, sponsored by ICA-AP and organized by iCOOP, was held at the International Conference Hall of Jogyesa Buddhist Temple on 30 Aug. 2010. Participants at the workshop discussed the status and paths forward for Asia consumer co-ops. With an eye to upholding co- ICA General Assembly in Geneva 2009 operatives’ values and sustainable development, the event provided cooperative members from different Asian countries an opportunity to share various information and reaffirm their friendship.

iCOOP Attends ICA-AP General Assembly and Forum iCOOP KOREA delegations attended in the 9th Regional Assembly of ICA Asia Pacific in China and 6th Asia Pacific Coop Forum, which ran from Sep. 1 to Sep. 5 in Beijing. The Female Commission, a new member to the Alliance, has offered iCOOP KOREA a chance to deliver keynote speeches at “Women and Youth Forum” on 2nd and “the Co-op Forum” on 4th. iCOOP Chairwoman OH, Mi-yea gave a speech with the theme, Co-operatives Empower the Capabilities and Rights of Women and Youth, in parallel with theme of the forums. After her speech, Dame Pauline Green, ICA president , praised various engagement channels and systematic approaches by female members and wished luck with future endeavors.

※ On July 3, 2009, the Council of Korean Cooperatives was established on July 3, 2009 by six Korean members organizations in the ICA:NACF(National Agricultural Cooperative Federation), NFFC(National Federation of Fisheries Cooperatives), KFCC(Korean Federation of Community Credit Coopertives), National Forestry Cooperatives Federation, the National Credit Union Federation of Korea, and iCOOP KOREA.

www.icoop.or.kr iCOOP Korea Chair OH, Mi-ye’s Keynote address in ICA-AP General Assembly

21 Part 5 iCOOP KOREA’s Activities

consumer coops in Japan Starting with Pal System Cooperative Union in 1998, iCOOP KOREA has been holding annual meetings with other co-ops, like Niigataken Sogo Consumer Cooperative, to share our experience and achievements. Thanks to this special relationship, Nagano Consumer Cooperatives sent support to iCOOP KOREA when our main logistics center burned down in 2000. iCOOP KOREA sent donations to Niigataken Sogo Consumer Cooperative in 2004 to aid earthquake victims.

1 _ Coop member activist training in Japan 1 2 2 _ Joint seminar with Japaness Package Reuse Inspectorate

iCOOP KOREA’s In line with the cooperative’s solidarity and ethical values, iCOOP KOREA continues to spirit of contribute to local communities and support the socially marginalized. solidarity and Fund-raising activities for Japan earthquake fellowship and Tsunami(2011) iCOOP KOREA also has started emergency relief fund-raising campaign ‘Gambare, Nippon!’ from 18th to 31th of March. This campaign had been progressed through the iCOOP KOREA’s home page and 95 ‘iCOOP NaturalDream’ retail shops all over the country. The total amount contributed KRW 20,261,500 had been donated to Japanese consumer co-operatives to be used at early stage restoration such as buying relief supplies.

1 Fair-Trade Stationery Collection Campaign for Children in Producer Countries Less than five years ago, iCOOP began to join the fair trade movement. In this relatively short period of time, its fair trade business has grown so fast that iCOOP now accounts for one third of the fair trade volumes in Korea while bringing about positive changes 2 to iCOOP’s fair trade producers. One of iCOOP’s visions is broaden its exchange channels with producers in the Third World and to provide stationery to children in producer countries, especially those who are economically and socially disadvantaged. To this end, iCOOP launched “the Stationery Bank Campaign”(temporary name) at its Nature Dream stores (from 1 May 2010 to 12 June), hoping that, by offering children an opportunity for education, 1 _ Fund-raising activities for we can help them achieve a bright future. 40 stores joined the campaign and collected Japan earthquake and Tsunami a total of 73,765 stationery items(574 boxes). Collected stationery will be delivered to 2 _ groundbreaking ceremony of children in iCOOP’s partner producers. iCOOP-AKC Mascobado factory in Panay Philippines

22 3 Construction Campaign for Mascobado Sugar Mill in Panay, Philippines(2010) In its effort to errect a Mascobado Plant for PANAY Fair Trade Center(PFTC) in Philippines, iCOOP organized a month-long Hope Fund-raising Campaign from 1 Oct. 2010 to 1 Nov., which enjoyed active participation from all stake-holders(members, producers and 4 entire staff). iCOOP’s entire staff and members engaged themselves in this campaign voluntarily for the great cause of understanding the truest meaning of fair trade and putting into practice ethical consumption(a type of consumption that solidifies human relationship, and protects the environment by promoting eco-friendly organic agricultural methods in the Third World). 5 Solidarity for Haitian people iCOOP KOREA took a campaign for solidarity from Feb.4th till April 28th 2010 for Haitian people suffering from earthquake. About 40 thousands dollars from more than 3000 members will be donated to ICA for emergency relief and reconstruction of local cooperatives in Haiti. 6 Donations to victims of Flood in North Korea(2006) August 2006 collaborates with consumer co-ops to provide 30,000 instant noodles.

Member Fundraising to Provide Meals to North Korean Children 3 _ Loading aid shipment for For one year period from May 2007 to April 2008, 1,005 members pledge over 5m KRW North Korean victims of every month. flooding 4 _ Dongrim Middle School students Relief details 5 _ Supporting food banks 6 _ Donating funds to Edagawa total contribution details Korean School • food:wheat flour, soybean oil , sugar, powdered milk, instant noodles, bread, snacks • school supply:pencils, pens, erasers, schoolbags, notebooks 47,628 US$ • clothes:jackets, shoes, underwear, gloves, socks, blankets, laundry detergent • trucks(for transporting material)

Assitance for Edagawa Korean School(2007) August 2007, over 1,000 members and producers raises and delivers a fund worth 12m KRW to Edagawa Korean School in Japan

Working with Korea’s food banks All Natural Dream stores across the country deliver pastry made from domestically grown wheat and other foods to local food banks almost every day, amounting to approximately $153,000 per year. www.icoop.or.kr Supporting local child care centers and group study rooms 1% of monthly iCOOP KOREA member donations is allocated to the Share Fund to assist these organizations regularly. Those organizations that use iCOOP products are exempt anizathe monthly member donation.usnother fund created in cooperation with producers is used to assist eco-friendly rice.

23 Part 6 iCOOP KOREA’s Group Structure

iCOOP KOREA’s Group Structure

The number of iCOOP KOREA’s local co-op societies are located in all major Korean cities, such as iCOOP KOREA’s Seoul, Busan, and include consumer cooperatives operating in workplace units, such local Co-ops:75 as the Korean Railway Worker’s Union.

The Consumer The followings are the businesses operating on donations from 75 nation-wide member Cooperatives co-operatives and their members. Group iCOOP Solidarity of Consumer Co-operatives(Chairperson SIN, Bok-su) This organization is in charge of purchasing, developing, supplying products, consultation for members, and settling payments. It tries to provide safer and more affordable products through integration and effective management of logistics, throughout the country. (iCOOP Products Commission) iCOOP Association of Consumer Co-operatives(Chair woman OH, Mi-yea) The Association supports local co-ops and the establishment of new local co-ops. It is also in charge of policy planning for consumer co-op movements, communication and exchange with NGOs, foreign co-ops. Mutual Aid Society for Enhancing Korean Agriculture(Chairmen KIM Jin-soo) This organization supports members and producers in financial need due to natural disasters, loss of job, 4th Business Management Council of or important family events. The Society is in charge of stimulating consumer cooperative activities through iCOOP Korea Group in 2010 mutual help among members. iCOOP Consumers’ Cooperative Institute(Director JUNG, Byung-ho) iCOOP Cooperative Institute is involved in a variety of academic activities: documentation on iCOOP KOREA’s identity, major projects and campaigns; various polls on local activists; key activists training; projects in cooperation with stake-holders and researchers at iCOOPKOREA, co-operative movement, social enterprise and trade union; diverse research projects; forums; symposiums; and projects on education, publishing and public relations. COOP Store Ltd.(President LEE, Jeong-joo) “Nature Dream” stores are run either on donations from members across the nation, or individual contribution. They come in many types such as eco-friendly organic produce store, bakery, restaurant and multi-purpose store, and are evenly distributed among major cities and regions such as Seoul, Gyunggi-do, Busan and Gwangju. Nature Dream make continuous efforts to develop processed organic foods such as coffee and chocolate using fair trade produce, and to preserve Korean indigenous seeds by launching Korean Wheat bakeries. Through these efforts, Nature Dream contributes to establishing a safe food system in our community.

AFT(Korea Certification of Distribution for eco-friendly foods Association, President PARK, In-ja) With the “A mark,” KCOD has created new inspection criteria for the entire producing, distributing, and consumption process so consumers can safely trust organic produce. Center for AFT(Representative Director JEONG, Chan-yul) The Korea Certification Center for Eco-friendly Foods Inc. under the KCOD is the 40th private certification organization for eco-friendly produce. It also certifies products or processes of other organizations on organic produce, organic livestock products, no-pesticide produce, no-anti-biotics livestock products, low-pesticide produce and re-packaging processes. On Sep, 10 2011, the National Agricultural Products Quality Management Service recognized the Center’s A-Mark system and excellent management of the organization, and selected the Korea Certification Center for Eco-friendly Foods Inc. as a strategic certification organization for organic produce in Gyunggi-do. 24 Eco-friendly Organic Food Cluster(Representative Director JIN, Kyung-hee) The iCOOP Eco-Friendly Food Cluster Inc. is an organization under iCOOP Alliance and is comprised of IT staff only. Unlike other industrial complexes, the Cluster utilizes a one-stop system that handles everything from cooperation among manufacturers; cooperation between manufacturers and logistics centers; manufactures; experience centers; to hygiene management system. The Cluster is a company that develops and manages such a cohesive system. Co-op Service Co.,Ltd.(Representative director KIM, Kyun-seop) Co-op Logistics Services exclusively handles eco-friendly food products. It was established for effective logistics management and higher logistics service quality in iCOOP KOREA. iCOOP Seed Foundation With a total of 750 million KRW worth of contributions, the iCOOP Seed Foundation aims to create mutual benefits and sharing community through a variety of activities including: a nation-wide campaigns to promote culture of philanthropy; a policy-focused study for mature donation culture; assistance for social projects that pursue community development and empower lives of the marginalized; creation of public-interest funds based on designated deposits by individuals or organizations, or purpose-driven funds with specific goals; and other projects needed to achieve other foundations projects.

The Production followings are enterprises founded on producer contributions led by the iCOOP Association part of Producer Group. iCOOP Association of Producer Groups(President LEE, Soo-geum) Affiliated with iCOOP KOREA, the Association promotes sustainability and ethical production in agriculture and the general society. (Product Management Headquarters)

1 (Agricultural Corporation)iCOOP Agricultural Production-Representative Director JOO, Jung-bok(Former Director of Hongseong Poolmu Cooperative) Unlike common wholesale market for agricultural products, iCOOP Agricultural Production is an online wholesale market for organic produce under the iCOOP Association of Producer Group, established with contributions from iCOOP Solidarity of Consumer Co-operatives and producers. It manages such eco-friendly produce as rice, Korean wheat, minor grains, vegetables and fruits. iCOOP Organic Food Supply Co.,Ltd(Director PARK, Seok-won) 2 This is a public agricultural corporation supplying safe meals to schools and companies through a transparent distribution system. Co-op Food System(Director KIM, Jin-soo) As a subsidiary of Co-op Agriculture Co. Ltd, the Co-op Food System is in charge of factory operation, research, and technology.

3 iCOOP Livestock Products Co.Ltd(Director LEE, Soo-geom) The corporation manages production and distribution of all processed meat products supplied by iCOOP KOREA. It has a principal object to develop and produce products that meet iCOOP KOREA’s livestock standards. Suncheon Native Wheat Confectionery(President CHO, Sung-gyu) The Confectionery, consists of baking facilities, a hands-on baking kitchen for the public, produces 120tons worth of diverse bakeries from Korean wheat every year. 1 _ Discussing the identity of iCOOP KOREA iCOOP Dough Co.Ltd(President CHOI, Byung-guk) 2 _ 11th iCOOP Solidarity of iCOOP Dough, a subsidiary of Co-op S&D focuses on supplying dough for bakeries inside Natural Dream stores. Its Consumer Coops Summit automated system enables stable and professional production. 3 _ 9th iCOOP Association of www.icoop.or.kr Consumer Coops general Co-op Bakery, Ltd.(associate, President SIN, Sung-sik) meeting Co-op Bakery, established in June 2010, is managed directly by iCOOP KOREA for purpose to make fresh and delicious breads, cakes, and sweets stuffs sold in Natural Dream stores. This factory clears Natural Dream’s criteria for dealing foods, for example, fresh materials cultivated in eco-friendly farming from local farmers and no artificial additives.

Cooperative Management Research Center Inc.(CEO SHIN, Sung-sik) In the modern era, business management is such a crucial part of an organization that it decides its success or failure. Cooperative Management Research Center Inc. studies innovative business management skills and offers consulting services to co-operatives. 25 Part 7 iCOOP KOREA’s Business Status

iCOOP KOREA’s Business Status

List of Member Local co-operatives

Seoul Daejeon city • Gangseo • Daejeon • Guro • Hanbat • Geumcheon hanwoomul • Yangcheon Jeollabuk-do • Seoul • Namwon • Songpa(associate) • Somri • Jeonju Incheon city • Ganghwa Gwangju city • Gyeyang • Bitgoeul-Citizen Coalition • Inchen • Bitgoeul • Namdong Yeonsu(associate) • Bitgoeul Seogu Gyeonggi-do Jeollanam-do • Goyang • Gwangyang • Gunpo • Mokpo • Gimpo • Suncheon • Gwangmyeong • Suncheon YMCA • Deogyang haetsal • Yeosu YMCA • Bucheon • South Hanwool • Bucheon-Citizens Coalition • Suwon mirae Gyeongsangbuk-do • Suwon • Gumi • Ansan • Pohang • Anyang Yulmok • Gimcheon(associate) • Uijungbu • Yongin Daegu city • Pyeongtaek Hwaseong • Daegu • Gunpo-Citizens Coalition(associate) • Daegu Chamnoori • Gwangmyeong woori(associate) • Daegu Haengbok • Gwangju Hanam(associate) • Seongnam Bundang(associate) Gyeongsangnam-do • Hwaseong(associate) • Geoje • Gimhae Chungcheongbuk-do • Jinju •  • Changwon Busan city Gangwon-do • Cheongju YWCA • Tongyoung • South Busan • Chuncheon-Citizen Coalition(associate) • Masan(associate) • Busan Dongnae Chungcheongnam-do • Yansan(associate) • Preun bada Institutional co-operatives • Asan YMCA • Jinhae(associate) • Haeundae • Worker’s union of Nationwide life insurance(associate) • Cheonan • Worker’s Union of Bank of Korea(associate) • Gongju(associate) Ulsan city Jeju island • Chungnam Naepo(associate) • Ulsan-Citizen Coalition • Jeju • Ulsan • Halla Workers’ co-op of iCOOP KOREA

26 Direct charge membership Increasing year turnover Year-on- growth rate # of member # of Natural annual turn over (KRW) year (Total membership)(person) coop Dream stores 1998 15.2 - 633 - 6 - and number of 1999 29.4 93.4% 1,229 94.1% 7 - members 2000 53.3 81.2% 2,470 100.9% 15 - 2001 83.0 55.7% 3,330 34.8% 26 - 2002 165.0 98.7% 7,538 26.3% 35 - 2003 287.0 73.9% 11,645 54.4% 46 - 2004 494.4 72.2% 15,368 31.9% 58 - 2005 601.0 21.5% 16,808 9.3% 62 - 2006 760.0 26.4% 20,097 19.5% 62 6 2007 942.4 24.0% 22,350(34,291) 11.2% 65 25 2008 1,301.5 38.1% 35,204(54,660) 57.5%(+59.4%) 70 38 2009 2,062.0 58.4% 56,100(78,593) 59.3%(+43.7%) 73 66 2010 2,632.7 27.6% 85,116(118,824) 51.7%(+51.1%) 75 96

※ as of Dec. 2010

Increase of annual turnover

2,632.77 2,600

2,400

2,200

2,062 2,000

1,800

1,600

1,400 1,301.5

1,200

1000 942.4

800 760.0 601.0 600 494.4

400 287.0 www.icoop.or.kr 200 165.0 53.3 83.0 15.2 29.4 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (unit:hundred mill.)

27

118,824 110,000

100,000

90,000 85,116

80,000 78,593 이용조합원(명)

70,000 가입조합원(명)

60,000 56,100 54,660

50,000

40,000 35,204 34,291

30,000

22,350 20,097 20,000 15,368 16,808 11,645

10,000 7,538 3,330 2,470 663 1,229 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2,632.77 2,600

2,400

2,200

2,062 2,000

1,800

1,600

1,400 1,301.5

1,200

1000 942.4

800 760.0 601.0 600 494.4

400 287.0

200 165.0 53.3 83.0 15.2 29.4 Part 7 iCOOP KOREA’s Business Status 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Membership increase

118,824 110,000

100,000

90,000 85,116

80,000 78,593 Direct charge membership 이용조합원(명) Total membership 70,000 가입조합원(명)

60,000 56,100 54,660

50,000

40,000 35,204 34,291

30,000

22,350 20,097 20,000 15,368 16,808 11,645

10,000 7,538 3,330 2,470 663 1,229 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (unit:person)

Share capital total asset investment investment for special purposes loans taken out Status 2008 4,598,635,076 3,992,212,107 1,220,015,784 13,249,303,639 members 3,598,593,260 investment for fund 2,561,233,616 fund loans 251,875,500 KRW producers 1,000,041,816 investment for ‘Cluster’ 1,437,978,491 ‘Cluster’ loans 968,140,284 2009 7,788,047,132 6,999,704,784 5,771,759,242 28,043,240,053 members 6,526,208,645 investment for fund 3,174,853,709 fund loans 672,618,437 KRW producers 1,261,838,487 investment for ‘Cluster’ 3,824,851,075 ‘Cluster’ loans 5,099,140,805 2010 9,222,866,973 11,787,637,042 16,058,941,550 43,901,102,524 members 7,991,461,824 investment for fund 5,506,239,875 fund loans 4,927,416,939 KRW producers 1,231,405,149 investment for ‘Cluster’ 6,281,397,167 ‘Cluster’ loans 11,131,524,611

※ as of Dec. 2010 (unit:KRW)

Staffs Status year total No. of Staff year-on-year(persons) growth rate 2008 629 - - 2009 926 297 47.2% 2011 1092(male:786, female:306) 166 17.9%

※ as of Dec. 2010

28 www.icoop.or.kr