Korean Agricultural Cooperatives have been recognized as a successful case of agricultural cooperative in the world. Although they have made many trior and errors until the construction of organizational structure, they have successfully grown the businesses and achieved development since establishment of multipurpose cooperative in 1961. The government has supported the agricultural cooperatives through providing institutional arrangements and backing their businesses. They also carried out effectively a kind of policy agency role for the government. However, the government controls on them in early stage of development severly deteriorated the autonomy of cooperatives for the long times. The Agricultural Cooperatives are facing challenges to overcome difficulties of themselves as well as the problems of agricultural sector suffered from growth stagnation and low income. The National Agricultural Cooperatives Federation recently made a structural reform introducing holding companies to promote its competitiveness and economic businesses for members in 2012. Strengthening cooperative identity also is a major challenge to achieve in the near future.