Political Fund System

• Political Fund System
  • Types of Political Funds

    Political funds include membership fees, contributions, deposits, subsidies, extra revenues prescribed by the party constitution and regulations, money or marketable securities and goods provided for political activities.

    • Membership Fees

      Refer to the money, marketable securities and goods provided by party members in accordance with the party constitution and regulations.

    • Contributions

      Refer to the money, marketable securities and goods contributed to the Political Fundraising Associations (PFA)
      in accordance with the Political Fund Act. The PFAs collect contributions from supporters (with both members
      and non-members included) and donate them to a person eligible to designate the corresponding PFA.

    • Deposits

      The money, marketable securities and goods deposited with the Election Commissions by an individual who seeks to contribute a political fund to a political party.

      The amount an individual is permitted to deposit ranges from KRW 10,000 per deposit or goods of equivalent value to whichever amount is larger between KRW 100 million or 5/100 of the income of previous year.

      The National Election Commission allocates the amount deposited to central parties according to the proportion of distribution of national subsidies within 14 days after the last day of the quarter in which the date of deposits being made falls.

    • Subsidies

       

      Refer to the money and marketable securities the State provides to political parties in pursuit of protection and promotion for political parties.

      Subsidies include general yearly subsidies (an amount equal to the number of those who have voted in the latest National Assembly elections multiplied by the subsidy unit price) and election subsidies in a year of public official election (an amount equal to general yearly subsidies), female candidate nomination subsidies (an amount equal to the number of those who have voted in the latest National Assembly elections multiplied by KRW 100 ) and disabled candidate nomination subsidies (an amount equal to the number of those who have voted in the latest National Assembly elections multiplied by KRW 20).

      Subsidies are allocated according to whether or not a negotiating group is formed in the National Assembly, the number of seats in the National Assembly and the proportion of votes gained by each political party. Election subsidies are provided to political parties that have nominated a candidate for the corresponding election no later than 2 days after the closing date of candidate registration.

      Female candidate nomination subsidies are distributed based on the proportion of nomination in accordance with the number of seats in the National Assembly and the proportion of votes gained. The subsidies shall only be used for election expenses for female candidates. Disabled candidate nomination subsidies are allocated according to the number of seats in the National Assembly and the proportion of votes gained based on the ratio of nomination. The subsidies shall only be used for election expenses for disabled candidates.

  • Transparent Political Fundraising and Spending
    • Political Fundraising

      No one shall contribute or receive political funds unless in accordance with the Political Funds Act.

    • Political Fund Spending

      Political funds shall only be used for political activities, not for personal expenses or wrongful purposes.

      For transparent use of political funds, anyone who contributes more than KRW 1.2 million at a time or who spends more than KRW 500,000 at a time shall donate or spend in ways that verify his/her real name (such as by check, credit card and account transfer). Meanwhile, if candidates and pre-candidates for public office spend political funds of more than KRW 200,000, spending methods shall be by using their real names such as by check, credit card and account transfer.

      Furthermore, annual cash spending shall not exceed 20/100 of the annual total amount of spending (10/100 of the election spending limit, in case of election expenses).

    • Restriction on Contribution of Political Funds

      Foreign nationals, corporate bodies in/outside the nation or organizations shall not contribute political funds.

      If anyone contributes political funds of more than KRW 3 million over a year (more than KRW 5 million, when donated to Political Fundraising Associations for presidential candidates, etc.), the mount donated and his/her personal details shall be open to the public. Contributions shall only be made in contributors’ real names.

    • Tax Reduction or/and Exemption

      In accordance with the Restriction of Special Taxation Act, anyone who has contributed or received political funds shall be exempted from income tax and gift tax equivalent to the amount of political funds.

      An individual who has contributed political funds is entitled to tax returns of up to KRW 100,000. An amount of contribution exceeding KRW 100,000 will be deducted from the corresponding contributor’s assessable income.