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Making a Future Together 2016 Icoop KOREA a Nnual Report Making a future together Report Annual KOREA 2016 iCOOP Contents With consumer co-operatives at the center, iCOOP KOREA’s Today 04 iCOOP KOREA builds an ecosystem of honest and reliable co-operative enterprises with producers and employees. Foreword 06 SECTION 1 Security in our daily lives 08 OH Miyea, Chairperson of iCOOP UNION Food reliability 10 Co-operative A co-operative is an autonomous association of persons united voluntarily to PARK Inja, Chairperson of iCOOP Consumer Activities Realizing security in our daily lives 13 Definition meet their common economic, social, and cultural needs and aspirations through CHO Seonggyu, Chairperson of iCOOP Association of Producer Groups Ethical consumerism movement to change the society 14 a jointly-owned and democratically-controlled enterprise. LEE Sunkyoung, Chairperson of iCOOP Certification Center Practitioners who make imagination into reality 16 Co-operative Co-operatives are based on the values of self-help, self-responsibility, democracy, Values equality, equity and solidarity. In the tradition of their founders, co-operative SECTION 2 People-oriented economy 18 SECTION 3 A better future 30 members believe in the ethical values of honesty, openness, social responsibility and caring for others. Co-operative enterprise where people want to work 20 Sustainable production and consumption system 32 Spreading ethical management that shares its fruits 22 Life movement to address climate change 38 Co-operative 1st Principle Voluntary and Open Membership 26 40 Creating an honest and reliable co-operative ecosystem Spreading the values of the co-operative movement 2nd Principle Democratic Member Control 28 42 Principles Innovators who support each other Facilitators who connect the present and the future 3rd Principle Member Economic Participation 4th Principle Autonomy and Independence 5th Principle Education, Training and Information iCOOP KOREA's 20-year history 44 Member co-operatives and organizations 46 6th Principle Co-operation among Co-operatives 7th Principle Concern for Community Better food for more people Adopted by UN in 2015, The Sustainable Development Goals (SDGs) comprise 17 goals with 169 targets to be achieved by 2030. Engaged in business and activities in various fields all over the world, co-operatives have been recognized as performers of SDGs. iCOOP KOREA This is iCOOP KOREA’ s sixth annual report since the first report was published in 2011. iCOOP KOREA is a co-operative federation that conducts main businesses and activities in This 2016 annual report is based on the iCOOP Mission Statement, which is presented for the 20th anniversary of iCOOP KOREA production, consumption and agriculture and has practiced actively in programs such as ‘End 2016 Annual Report poverty in all its forms everywhere’, ‘Achieve food security and improved nutrition and promote 01 Reporting period January 1 - December 31, 2016. Some data display the results of last two or three years sustainable agriculture’, ‘Ensure inclusive and quality education for all and promote lifelong learning’, ‘Achieve gender equality and empower all women and girls’, ‘Promote employment 02 Reporting cycle Published annually and decent work for all’, ‘Ensure sustainable consumption and production patterns’, ‘Take urgent action to combat climate change and its impacts’ and ‘Halt biodiversity loss’. These practices are 03 Guideline Focusing on iCOOP Mission Statement, this report was written based on the Global Reporting Initiative(GRI) and the Sustainable Development Goals(SDGs). all mentioned in our annual reports. 3 Ethical consumption is no big deal. Purchasing eco-friendly products that do not affect our earth, using fair trade products without child labor and labor exploitation and supporting eco-friendly Korean native wheat that contributes to incomes of producers during winter-every single one of these small practices is a valuable consumption that considers us, neighbors and the environment. iCOOP KOREA is building a valuable world with our ethical consumerism . KOREA’S TODAY People Co-operation Activity Infra Organization Trust Membership (person) Investment (KRW) Education (person) Product safety inspection Members with monthly membership dues Member investment 52,057,137,611 Members/Member leaders 109,858 Natural Dream Member co-ops 91 iCOOP Certification 675 farms Total members stores Safety inspections 193 iCOOP Organizations 32 178 (Consumption, production (pesticide residues, 16,709 Responsible investment (person) 158 and activity sectors) radioactivity, antibiotic, inspections 250,980 2016 GMO, etc.) 237,610 Participation 5,115 2015 218,585 Partners 17 212,216 2014 194,652 175,183 Member’s advanced fund account Logistics centers 7 for stable farming Distribution centers 6 Participation 68,637 members Grassroots gathering Clusters (Gurye/Goesan) 2 Contribution in 2016 KRW 13,963,459,860 Town meetings 2014 2015 2016 1,069 Multicultural centers 8 Clubs 913 Price stabilization fund (KRW) Board members of member co-ops 795 Total accumulated fund 19,389,950,964 Member leaders 2,966 Collected in 2016 3,959,890,073 Used in 2016 2,022,363,901 Producers (person) Business Finance Total 2,397 Store co-operation fund (KRW) iCOOP Association of Producer Groups 314 Total accumulrated fund 4,080,654,900 Consumption sector (KRW) Production sector (KRW) Processed food producers 262 525.6 552.3 Collected in 2016 731,626,200 483.3 Net income 4,289million Net income 5,599million billion billion billion Used in 2016 290,000,000 Retained 5,886million Retained 10,520million earnings earnings Employees (person) Social contribution Seed Foundation Capital 61,628million Capital 17,982million Total 2,366 Fair trade fund (KRW) for Social Economy of KOREA (KRW) (including (including member shares) member shares) Partners 709 Total accumulrated fund 490,438,290 Total accumulrated fund 4,625,220,540 Member loan 32,314million Member loan 26,138million Member co-ops 541 Collected in 2016 75,575,090 Collected in 2016 1,110,423,140 Member loan/ Member loan/ 2014 2015 2016 48% 92% Total jobs created by iCOOP KOREA 3,616 Used in 2016 78,455,966 Used in 2016 593,788,053 equity ratio equity ratio (turnover, KRW) 4 5 Foreword iCOOP KOREA paves a new way We must do it! We can do it! And we’ll do it! The year 2016 had many problems both internally and externally, but we focused on In our history, the ‘Jeongyu year’ —the year of the rooster, meaning 2017—recalls building a sustainable foundation. iCOOP KOREA made efforts to raise the stability of the ‘Jeongyujaeran’ when Japan invaded Korea in 1597. capital for it is inevitably vulnerable in a co-operative structure. We also endeavored to develop products for members and consumers, while examining the whole business The people in this period probably experienced a great chaos and despair. in preparation for this bleak economy. As a result, we developed pressed rapeseed oil, However, despite the situation, they overcame the war, through their their wisdom Korean wheat oligosaccharide, and ‘safe’ caramel syrup with the help of 250,000 members. and courage. Today, we are standing in a cold chaos once again. This means that we have iCOOP KOREA has challenged a new way that others do not go in order to realize food to overcome this confusion and despair like our ancestors did. OH Miyea reliability. CHO Seonggyu Chairperson of iCOOP UNION Chiarperson of iCOOP Association Celebrating the year of the rooster, we plan to gather our wisdom and courage iCOOP KOREA works to extend the benefits of its growth to the society as a whole and of Producer Groups just as roosters are known for their survival capacity. It is amazing how chickens laid the foundation to promote products and services of the social economy through can spot even the smallest preys that are invisible to humans in order to survive. co-operation and solidarity. The Gurye Natural Dream Park is a perfect example where Of course, there are many things for us to keep in sight as these chickens, but we members, producers, and employees all participated in raising capital and made it need to first take a look at ourselves. Looking back over the past few years, we possible for life and culture to meet. Furthermore, as the co-operatives grew, they have not cultivated our land, the foundation of agriculture, for a long time. revived the rural community through sustainable agriculture and even created new jobs. As a result, since 2014, iCOOP Association of Producer Groups have changed its direction The Goesan Natural Dream Park, which is waiting to open soon, will also be a place to ‘cultivating land’ and made innovations. These efforts can bear fruit for both producers where young people would like to work. and consumers in the next few years. Together with members, producers and employees who believe in the power of We will surely do it! co-operation, iCOOP KOREA will continue to progress, not being afraid of new challenges. iCOOP KOREA’s new courage brings hope We will evolve the iCOOP Certification Center one step further As Korean citizens and iCOOP members, we had a great deal of interest in our This is my third year since I joined the certification center in 2015. My two year society and organization in 2016. iCOOP KOREA proved to the society the importance tenure is really too short compared to the center’s 10 years history, but I can say of food labelling system, which is the starting point of iCOOP KOREA and members’ that I had a meaningful experience while discussing and working with employees fundamental needs. to take full responsibility of our members’ safety. The food safety system that has been developed for the past 20 years to secure In 2016, from a total of 2,135 farms of primary agricultural produce, we prevented safe food is not the exclusive property of co-operatives but intended to be a stepping 327 farms from incidents in advance.
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