Article 2 provides the basic principles of the political fund as follows: First, no person may contribute or receive any political funds except by this Act. Second, political funds shall be fairly used so as not to provoke the people's suspicion, and a statement of accounts thereof shall be made open to the public. Third, the political funds shall be disbursed only to cover expenses required for political activities, not for any private expenses or unlawful purpose. Fourth, whenever someone wants to donate or disburse political funds in excess of the limit, it can only be done by using checks, credit cards and bank deposits where the real name is verifiable. However, cash transactions are allowed for political donations of under 1.2 million Won per time and disbursements within 20/100 of the total annual expenditure (10/100 of the election expense limit for election expenses), and under 500,000 Won for political funds other than the election expenses (200,000 Won for candidates and preliminary candidates for public elections), and for the election expenses it is under 200,000 Won where cash is permitted.

Lastly, no one is permitted to donate using another person’s name or one that is not their real name, and all political funds such as paid or donated membership fees, donations or deposits etc. found in violation of the law are to be confiscated to the national treasury (Article 4, Clause 4, Article 11 Clause 4, Article 24, Clause1 )

'Party membership fee' means money, securities or other objects that members of a party shall bear under the constitution and regulations of a political party, regardless of its titles. It doesn't set an upper limit.

Receipts for Party Membership Fees paid are made according to the standard format, but each Party office is allowed flexibility of including materials promoting the Party or policies on the invoices as needed for their situation.
The treasurer of a party is required to issue a copy of invoice to the party member for the party membership fee paid, and keep the original from the date of receiving payment till the last day of the year (the day of dissolution or the date of the party registration is cancelled if the party becomes dissolved or has its registration cancelled).
However, in case the address of members are impossible to find out due to the payment through credit cards, deposit amount, telephone, Internet digital settlement systems, etc., the treasurer of a party is required to issue and keep the receipt for the Party Membership Fee.

Party members are not permitted to donate using another person's name or one that is not their real name and those donations are to be confiscated to the national treasury.

Those who may designate Political Fundraising Association are as follows; members of the National Assembly, candidates and reserve candidates for the Presidential election, candidates for intra-party competitive election for the Presidential election, candidates and reserve candidates for the National Assembly election for a local constituency, candidates for party leadership election, candidates to run in an elections for the heads of local governments.

Any person may be a member of one or more Political Fundraising Associations by his/her own will. However, the corporations, organizations and foreigners restricted to contribute the political funds and persons who are ineligible for party membership cannot be the members of the Political Fundraising Association.

A Political Fundraising Association may, receive the supporting money and valuables from its members and persons who are not its members, and transfer such money to a relevant authority to designate Political Fundraising Association after making registration with the competent Election Commission.

The money and valuables that supporters (referring to the members of Political Fundraising Association, and persons who are not the members; hereinafter the same shall apply) are permitted to contribute to their association shall not exceed 20 million won a year.
The supporters may contribute money and valuables to the Political Fundraising Associations as a following chart.

The annual ceiling of fund raising or transferring for a Political Fundraising Association are as follows. First, 'Years' refers to the period in which the relevant Political Fundraising Association may be organized in case of the Political Fundraising Association, for candidates and reserve candidates for the? Presidential election, for the reserve candidates for? the? intra·party competitive election for the Presidential election, for intra·party competitive election for the representative of the central party, for candidates and reserve candidates for the National Assembly election for a local constituency.
In case of the Political Fundraising Association for the candidate for candidates and reserve candidates for the? Presidential election whose principals are the same person, candidates and reserve candidates for the National Assembly election for a local constituency whose principals are the same person. it refers to the ‘total amount’. It is applied since parties, etc., an authority to designate Political Fundraising Association, endorse the candidates to the relevant election of public offices (in a case of the? Presidential election, applied since parties, etc. an authority to designate Political Fundraising Association, elect the candidate).
In this case, Political Fundraising Association for the proportional representative National Assembly members, for the independent National Assembly members, they may make fund raising and contributions up to twice that amount as their authorities register with a candidates. The case where the amount of contributions to be raised exceeded its ceiling for a year, the association can not be supplied supporting money by supporters and raising money and valuables. So they have to take actions like closing an account.

Although the Political Fundraising Association may receive the supporting money from its members without restriction of ways, mail, telecommunication advertisement, or exchange with a receipt for the political funds, credit cards or deposit account should be involved in raising money and other valuables from non-members as provided in Political Fund Act.
There are various limitations relating to the rigid restriction of election campaign period on the Election Law in fund raising and the Political Fundraising Association shall be prohibited from raising money and other valuables through the means of a rally because of the rallies of past were abused as scattering money and other valuables.

When the Political Fundraising Association has received any contribution of money and valuables from a supporter, it shall deliver a receipt for fixed amount of the political funds produced by the National Election Commission. They, receipts for political funds, are distribute to the Political Fundraising Associations with fee and the National Election Commission give a public notice of its fee not later than December 20 annually. The fee is decided with regard for a production cost and fluctuation rate of a producer price index. When a Political Fundraising Association intends to obtain an issue of receipts of political funds, it has to pay the fee in revenue stamps along with an application for issuing receipts for political funds to the relevant Election Commission.
There are two kinds of the receipts for political funds; non·fixed amount receipts where the amount is not printed, the fixed amount receipts where the amount is printed. The amount to be indicated on the receipt for fixed amount shall be in six denominations, such as 10 thousand won, 50 thousand won, 100 thousand won, 500 thousand won, one million won and five million won. For the supporting money or valuables equivalent to less than a unit of 10 thousand won, it may deliver a receipt for non·fixed amount of the political funds, even in the case of supporting money and valuables of less than 100 thousand won or contributed supporting money and valuables in excess of 100 thousand won, because in this case it is impossible to issue the fixed amount receipt. As the Political Fundraising Association issues the non·fixed amount receipts to the supporters, it may write an amount of money on that. In addition, an electronic form of non-fixed amount receipts, in which technological measures are taken to prevent forgery and alteration, are issued and contributed though the internet.
The Political Fundraising Association may apply for issuing the receipts for political funds as far as not exceeding its annual ceiling of contributions to the relevant Election Commission.
Invoices for political funds must be issued to the donors between the day of donation to the last day of the year (the day of dissolution if the supporters’ association becomes dissolved), but for the amounts of under 10 thousand won per donation the invoices can be batch-issued on the last day of the year.
Where an invoice for political fund cannot be issued because of unknown contact details, such as an anonymous donation where the donor’s address is not available, the supporters’ association must publish it and keep it with them.

Contribution refers to money, etc. that any individual deposits to the competent Election Commission, with the intention of donating political funds to a political party. Under the law in force a depositor can not appoint a receiver, any foreigners, corporations and organizations may not contribute the political funds and it is permitted that an individual who has acquired Korean citizenship. (Article 22)

A deposit which may be deposited by one person shall be not less than 10 thousand won or a value equivalent thereto at any one time, and less than either 100 million won or 5/100 of the incomes in the preceding year, whichever is greater.

Any person, who is not restricted to contribute the money, shall deposit the political funds within the limitation in person with his real name to the Election Commission. However, no one may deposit any money for political funds under a name of other person or anonymously. In this case, a deposit may be permitted on the condition that the name of the depositor is not disclosed in the public notice about payment (Article 22, Clause 3).

Deposit money is paid to the Central Party of political parties within fourteen days from the last day of the applicable quarter, according to the distribution rate of the? National Subsidies at the time of payment.

Subsidies consist of general subsidies, election subsidies, and female candidate nomination subsidies.

• General Subsidies (Article 25, Clauses 1, 3)

  General subsidies are subsidies that are included in the national budget each year, and paid to political parties in equal amounts every quarter to subsidize the general operational expenses of the parties. The budgeted amount of general subsidy is equal to the number of voters in the latest National Assembly election held due to the expiry of term multiplied by subsidy earmarked cost.
  
  subsidy earmarked cost refers to the amount that subsidy earmarked cost of preceding year and the calculated cost, in consideration with national consumer price fluctuation of preceding year compared with the year before last in accordance with 「National Statistical Act Article 3」notified by head of the? National Statistical Office every year, are added or reduced.

• Election Subsidies (Article 25, Clauses 2, 3)

  Election subsidies refer to the subsidies paid to political parties by the nation on the years when there is a presidential election or various public office elections are held due to the expiry of term, as the expenditures of the political parties rise due to election·related expenses etc.
  
  On the years when there is a presidential election, or the National Assembly election or simultaneous regional elections due to the expiry of term, an additional amount equal to the number of voters in the latest National Assembly election held due to the expiry of term multiplied by subsidy earmarked cost is placed in the budget as the election subsidy for each election held (simultaneous regional elections are counted as a single election).

• Female Candidate Nomination Subsidies (Article 26)

  Female candidate nomination subsidies are paid to the political parties that have nominated female candidates for the elections of the? National Assembly Members or Si/Do Council Members, Autonomous Gu/Si/Gun Council Members.
  
  On the years when there are elections for the National Assembly Members or Si/Do Council Members or Autonomous Gu/Si/Gun Council Members due to the expiry of term, an amount equal to the number of voters in the latest National Assembly election held due to the expiry of term multiplied by 100won is placed in the national budget as the female candidate nomination subsidy.

• Distribution of General and Election Subsidies (Article 27)

  General and election subsidies are first distributed according to the standard distribution rate at the time of payment, and the remainder is then distributed based on the ratio of the Assembly seats won and the number of votes gained.
  
  The subsidies are distributed according to the standard rate as following:
  ① 50/100 of the subsidy is equally distributed to political parties that have formed the negotiation bodies
  ② the political parties with 5~19 National Assembly Members are each subsidized with 5/100
  ③ for the political parties that have either polled at least 2/100 of the votes in the latest National Assembly Member election, held due to the expiry of term, or polled under 2/100 of the votes but managed to win at least one seat in the Assembly 2/100 of the subsidy is given to each political party that has either polled at least 0.5/100 of the votes in the latest local elections where party nominations are permitted, which elections for Si/Do council members for proportional representatives, Si/Do council members for local constituency members, Si/Do Governor and Head of an Autonomous Gu/Si/Gun.
  
  Also, 0.5 /100 of the subsidy is given to each political party that hasn’t participated in the latest election of the National Assembly Members held due to the expiry of term and polled at least 2/100 of the votes in the latest local elections where party nominations are permitted, which elections for Si/Do council members for proportional representatives, Si/Do council members for local constituency members, Si/Do Governor and Head of an Autonomous Gu/Si/Gun.
  
  Of the remaining subsidy, 50/100 is distributed among political parties that hold National Assembly seats at the time of payment according to the ratio of seats held by the parties, and the remainder of that is distributed according to the ratio of votes polled in the latest election for the National Assembly Members (average of the poll ratios for the proportional representations and local constituencies).

• Distribution of Female Candidate Nomination Subsidy (Article 26 Clause2)

  Female candidate nomination subsidies are distributed to political parties based on the ratios of the? National Assembly seats held and the votes polled. Female candidate nomination subsidies of the elections for Si/Do council members for local constituency members, and council members for an Autonomous Gu/Si/Gun are 50/100 of the Female candidate nomination subsidies earmarked for the fiscal year's budget and which are the total Female candidate nomination subsidies each election.
  
  The distribution and disbursement varies depending on the presence of political parties with the ratios of female candidate nomination of at least 30/100 as the follows:

  1) If there are political parties with the female candidate nomination ratio of at least 30/100

  50/100 of the total Female Candidate Nomination Subsidy is distributed and disbursed according to the ratio of the National Assembly seats held by political parties at the time of payment, and the remainder is distributed and disbursed according to the ratio of votes polled in the latest election for the National Assembly Members held due to the expiry of term.

  2) If there are no political parties with the female candidate nomination ratio of at least 30/100

  ① The political parties with the female candidate nomination ratio in the range of 15/100 and 30/100 50/100 of the total Female Candidate Nomination Subsidy is distributed and disbursed according to (1).
  ② The political parties with the female candidate nomination ratio in the range of 5/100 and 15/100 30/100 of the total Female Candidate Nomination Subsidy is distributed and disbursed according to (1) In this case, the Female Candidate Nomination Subsidy paid to any political party cannot be higher than the minimum amount of subsidy paid to the political parties at (1).

General subsidies are disbursed every three months to the central party of the political party qualified to take one annually, and Election subsidies are disbursed within 2 days from the deadline of candidates' registration. In case of? election subsidies, it is disbursed to the central party of the political party that endorses the candidates in the relevant election.
Female candidate nomination subsidies are distributed to political parties within two days after registration of candidates for the elections of the National Assembly members for a local constituency, Si/Do council members for local constituency members, and council members for an Autonomous Gu/Si/Gun held due to the expiry of term.

National subsidies are for the operation of political parties, and must not be used for causes other than:
① personnel cost,
② administrative furnishings and consumable,
③ setting up and maintenance of offices
④ public utility charges,
⑤ policy development expenses,
⑥ training of party members,
⑦ organizational activity expenses,
⑧ advertising costs,
⑨ election·related costs (Article 28 Clause 1)
The political parties that have received general subsidies must distribute and disburse at least 30/100 and 10/100 of the subsidies to the policy research center and Si/Do parties respectively, and also must use at least 10/100 for the political development of women (Article 28 Clause 1)

• Report on the Appointmea of a Treasurer

  The leaders of political parties (including the policy research centers and party election offices), representatives of the supporters’ associations, the National Assembly Members with supporters’ associations, candidates for the? intra·party competitive election for the Presidential election, candidates for party leadership elections, candidates and reserve candidates (when appointing the treasurers for election and election contact offices) for public office elections, and the heads of election contact offices (when appointing treasurers for election contract offices only) must appoint treasurers from those who are eligible to participate in the election campaigns for public offices and notify the Election Commissions with jurisdiction.

• Report on the Change of the Treasurer

  When a treasurer is changed, a report on change shall be filed within 14 days. In this case, the predecessor and the successor shall promptly prepare required documents and affix his /her signature and seal thereon, and thereafter hand over or take over the remainders of assets and political funds, accounting books, deposit passbooks, credit cards, seals such as that of a Political Fundraising Association and that of representative, and other documents.

• Report on Deposit Accounts, etc.

  A Political party, Political Fundraising Association, a National Assembly member who has a Political Fundraising Association, the candidate for an election of public officers, etc. shall open a deposit account for revenue/disbursement of political funds on a financial institution that operates in their address or dwelling place. They may make the several deposit accounts for revenue, but they have to make only one deposit account for disbursement. If the copies of the? bankbook are attached when they report on selection or change of the treasurer, it is regarded to be report the opening of a deposit account. In case of withdrawing the political funds, the money on the deposit account for revenue can be out through the deposit account for disbursement.

• Introduction

  Financial Report is in place to obtain transparency in the dealings of political funds by requiring the users of political funds to report the details of assets and transactions of political funds over a certain period of time in a year when the users have or have not participated in the public office elections or there have been certain regular events.

  Types of Report

  There are several types of Financial Report based on the accounting principal, and they are the Financial Report by political parties, Financial Report by Political Fundraising Association, Financial Report by the National Assembly Members with supporters’ associations, Financial Report by the National Assembly Members, Financial Report by candidates for the intra-party competitive election for the Presidential election, candidates for party leadership election and their Political Fundraising Associations, Financial Report by candidates and reserve candidates for public office elections and their supporters’ associations and the Incidental Financial Report by each accounting principal when certain regular events have occurred.

  Report Items

  details of assets
  income of political funds
  record of expenclitures and balance
  copies of book books

  where to Report

  Financial Report must be made to the competent Election Commissin

• Financial Report of Political Parties

  Types of Report and Report Period

  A) The year not participated in public office elections : Covers from Jan. 1 to Dec 31 of the year, and to be reported by Feb. 15 of the following year (Jan. 31 for the Si/Do parties)
  
  B) The year participated in the national public office elections
   

  • Covers from Jan. 1 (the date of establishment for the party election offices) to 20 days from the day of election (the date of closing for the party election offices if closed later than 20 days from the election date), and to be reported by 30 days from the day of election (40 days for the presidential and proportional representative elections).
  • Covers from 21 days past the date of election to Dec. 31 of the year, and to be reported by Feb. 15 of the following year (Jan. 31 for the Si/Do parties)

  C) The year participated in the regional bi·elections of public offices

  • The Central parties and policy research centers are to follow 「(A) The year not participated in public office elections」 stated above.
  • Si/Do parties and party election offices concerned are to follow 「(B) The year participated in the national public office elections」 stated above.

  D) Incidental Financial Report
  When a political party is dissolved or has its registration cancelled then the Report must be carried out within 14 days of the incident.

  Treasurers

  The treasurers of political parties (including policy research centers, party election offices, the party nominated candidates for the intra·party competitive election for the Presidential election, proportional representatives to the National Assembly, and the election offices and election contact offices for the local council proportional representative elections) must make the report.

  Report Items

  The statements of assets, and income and expenditure of political funds the treasurer must report to the Election Commission with jurisdiction are based on the following:
  
  A) Book of Income and Expenditure of Political Party ※For the party membership fees on the income section, the total amount of all fees paid should be recorded. B) Statement of Assets ※Statement of Assets must be reported by Financial Report as of Dec 31 of the year. C) Summary of Political Party’s Income and Expenditure
  D) Summary of Political Party’s Assets, Income and Expenditure ※ When drawing up a summary of the political party’s assets, income and expenditure, the Central party must aggregate the figures for the Central party, policy research center of the Central party, Si/Do parties and party election offices, while the Si/Do parties must do the same for the Si/Do parties and party election offices.

  Attached Documentation

  Documents that must be attached to a financial report are as following:
  
  A) Statement of Income and Expenditure for political funds
  B) Invoices and copies of other documentary evidence
  C) A copy of the bank account book used for receiving and spending political funds
  D) Audit report from the internal auditing body (party election offices are exempted)
  E) A copy of the examination report (including disclosed documents) by the representative organ (including its appointed body)/Budget & Appropriation Committee (party election offices are exempted)
  F) Audit report from a certified public accountant (for the Central Parties only, and not submitted when there are no received or spent political funds)
  G) Report of transfer of residual asset (handing over party only)

  Joint signatures and seals of the leader of political party and the head of election office When accounting managers of election office & election contact office are submitting the financial report, it must be signed and sealed by the leader of the political party and the head of the election office jointly. However, for the election contact office the signature and seal of the head of the election contract office are required.

  Report of contributions made by the political party

  The detail of the political contributions authorized by the treasurer of the political party must be reported to the Election Commission with jurisdiction within 10 days of the date of public office election held in that year for the following cases:
  
  A) All political funds given by the political party to the Si/Do parties, policy research centers or its National Assembly 　 members from the commencement date of the reserve candidate registration application to the final day in accordance 　 with the 「Public Office Election Act」. If the Central party has contributed to Si/Do parties for the local elections taking 　 place, then the report is limited to the details of political contributions given to those particular Si/Do parties responsible 　 for the constituencies holding elections.
  B) All political funds given by the political party to the party election office and candidates and reserve candidates for the 　 public office elections registered with the party.

• Financial Report by Political Fundraising Association

  Types of Report and Report Period

  A) The year not participated in public office elections : Covers from Jan. 1 to Dec. 31 of the year, and to be reported by 　 Jan. 31 of the following year
  
  (a) The year participated in public office elections

  • Covers from Jan. 1 to 20 days past the election day, and to be reported within 30 days from the election day.
  • Covers from Jan. 21 to Dec. 31 of the year, and to be reported by Jan. 31 of the following year

  (b) Incidental Financial Report
  Financial Report must take place within 14 days of the occurrence of following incidents:

  • When the concerned supporters’ association concerned has dissolved.
  • When the support for the National Assembly Members concerned has refused the support from the supporters ’ association, or no longer has the right to have a supporter’s association.

  B) Report Agent : A Report Agent is an accounting manager of the organization.
  
  C) Report Items : The statements of assets, and receipt and spending of political funds that the treasurer must report to the Election Commission with jurisdiction are based on the following:

  • Book of receipt and spending of political funds
  • Statement of Assets
  • Report of receipt and spending of political funds ※ Most report the details of assets purchased & acquired with donations.

  D) Attached Documentation : Documents that must be attached to the financial report are as following:

  • Detailed statement of receipt and spending of political funds
  • Invoices and copies of other documentary evidence
  • A copy of the bank account book used for receiving and spending political funds
  • Report of transfer of residual assets (handing over party only)

  Financial Report by Political Fundraising of the National Assembly Members

  A) Types of Report and Report Period

  • The year allowed to raise the annual limit of funds
    ① From Jan. 1 to Jun. 30 of every year, and to be reported by Jul. 31
    ② From Jul. 1 to Dec. 31 of every year, and to be reported by Jan. 31
  • The year allowed to raise the double of the annual limit of funds
    ① From Jan. 1 to 20 days past the election day, and to be reported within 30 days from the election day.
    ② From 21 days past the date of election to Dec. 31 of the year, and to be reported by Jan. 31 of the following year, but if the election is held in December then follow 「② of (1)」 stated above.
  • Incidental Financial Report
    When the National Assembly Member has refused the support from the supporters’ association or no longer has the right to keep a supporter’s association, or if the supporters’ association has dissolved of its own will then the report must be made within 14 days from the day of occurrence of the incident.

  B) Report Item : The statements of assets, and receipt and spending of political funds that the treasurer must report to the Election Commission with jurisdiction are based on the following:

  • Book of income and expenditure of the supporters’ association ※ For donors who give under 300 thousand won per donation, the number of donations and total amounts are recorded.
  • Statement of Assets
  • Summary of the supporter’s association’s Income and Expenditure

  C) Attached Documentation : Documents that must be attached to the financial report are as following:

  • Statement of Receipt and Expenditure of Political Funds
  • Invoices and copies of other documentary evidence
  • A copy of the bank account book used for receiving and spending political funds
  • Audit report from the internal auditing body
  • Copy of the examination report from the representative organ (including any appointed body)
  • Report of transfer of residual assets (handing over party only)

  D) Report of Major Contributors List
  When the treasurer of the supporters’ association makes the financial report, the name, date of birth, address, occupation, telephone number, date of donation and amount of donation must be reported for those donors who donated an excess of 300 thousand won per donation or the annual donations exceeded over 3 million won (5 million won for the supporters’ associations of candidates and reserve candidates for Presidential election, for the supporters’ associations of candidates for intra-party competitive election for the Presidential election).

  Financial Report by Candidates for the intra-party competitive election for the Presidential election, Candidates for party leadership election and their Supporters’ Associations

  A) Types of Report and Report Period

  • Until 20 days past from the day of general election and to be reported within 30 days from the date of election. In this case the treasurers for the National Assembly Members with supporters’ association are to account starting from Jan. 1 of every year till 20 days past the day of general election and to report within 30 days from the election day, and from 21 days from the election day till Dec. 31 and to report by Jan. 31 of the following year, regardless of the provisions of「3. Financial Report by the National Assembly Members with Supporters’ Associations」
  • Incidental Financial Report : Financial Report must take place within 14 days of the occurrence of following incidents:
    ① When the supporters’ association has dissolved of its own will.
    ② When the recipient of support has refused the support from the supporters’ association, or no longer has the right to have a supporter’s association

  B) Report Items and Attached Documentation

  • Candidates for the intra-party competitive election for the Presidential election or Party Leadership elections:as same as the National Assembly Member with Supporters’ Association
  • Supporters’ Association of Candidates for the intra-party competitive election for the Presidential election or Party Leadership elections:as same as the supporters’ association of a political party or National Assembly Member.

  ※ The treasurers of candidates for the intra-party competitive election for the Presidential election or party leadership elections must report the details of assets purchased or acquired with the donations and allowances received from the registered political party.

  Financial Report by Candidates and Reserve candidates for Public Office Elections and their Supporters’ Associations

  A) Report Period etc.

  • Till 20 days from the date of election (a day before the candidate registration for the treasurers of the party nominated candidates for the Presidential election) and to be reported within 30 days from the day of election (40 days from an independent candidate for the Presidential election)
  • The treasurers of the party nominated candidates for the Presidential elections, election offices and election contact offices for the proportional representatives for the National Assembly and Local Council elections are to follow the 「(2) or (3) of 2. Financial Report by Political Parties」 stated above.
  • Incidental Financial Report : Financial Report must take place within 14 days of the occurrence of following incidents:
    ① When the reserve candidate for public office election is disqualified 30 days before the commencement date of election period
    ② When the supporters’ association of the reserve candidate for the public office election is dissolved 30 days before the commencement date of the election period

  B) Report Items and Attached Documentation

  • Candidates & Reserve candidates for Public Office elections: as same as the National Assembly Member with Supporters’ Association.
    ※ However, when a party nominated candidate becomes the reserve candidate for the Presidential election then 「a copy of the Statement of Election Expenses by the Reserve candidate」(the treasurers of the reserve candidates and the election office of the party nominated candidate for the Presidential election only) must be submitted as an attached document.
  • Supporters’ Associations of Candidates & Reserve candidates for Public Office elections: as same as the supporters’ associations of political parties or the National Assembly Members ※ The treasurers of candidates and reserve candidates for public office elections must report the details of assets purchased or acquired with the donations and allowances received from the registered political party.

  Announcement of the Details of Financial Report

  The Election Commissions that have received the Financial Report from the National Assembly members with supporters’ associations, candidates for intra-party competitive election for the Presidential election, candidates for the party leadership election, candidates and reserve candidates for public office elections, Political Fundraising Associations etc. must announce the details in accordance with the internal provisions.

Treasurers must immediately hand over the following accounting related documents to a senior official after completing the financial report, and the senior official shall keep these documents for three years from the day of completion of the financial report (Article 44)

① the original registry of receipts for party membership fee,
② the original registry of receipts of political fund,
③ the accounting books,
④ the detailed statements relating to the revenues and disbursements of political funds,
⑤ receipts and other documentary evidence,
⑥ the deposit passbook,
⑦ the written resolution of disbursements, and the circulation of draft of purchase.

• Inspection of Financial Report and Delivery of Copies (Article 42)

  Public Notice of Items Necessary for the Inspection and Delivery of Copies

  The relevant Election Commission that received the financial report shall notify the public of following items within seven days of the deadline for the financial report.
  
  ① the receipt of financial report,
  ② the period of inspection and delivery of copies,
  ③ the expense for delivery of copies,
  ④ a summary of details of the revenues and disbursements of political funds etc.

  Inspection and Delivery of Copies of the Financial Report

  ① Anyone can make requests for the inspection and delivery of copies.
  ② The inspection period is for three months from the public notice of details of the financial report, and there is no such time restriction for requesting delivery of copies
  However, while it is permitted to disclose the details of the election expenses on the internet homepage of the Election Commission, it cannot be disclosed outside the period of inspection.
  ③ The objects of inspection are the details of the assets situation reported by the financial report, the revenues and disbursements of the political fund and attached documents, and the objects of request for delivery of copies are the reported financial report, and the revenues and disbursements of the political funds and attached documents.
  However, 「the copies of receipts and other documentary evidence, and the copies of the deposit passbook used for the revenues and disbursements of political funds」 from the attached documents are excluded from the objects of requests for delivery of copies.
  ④ If wishing for an inspection or to have copies delivered, a written application for inspection or delivery of copies must be submitted to the relevant Election Commission, and the expense for delivery of copies shall be paid in fiscal stamps pasted on the request form.

  Restrictions and Prohibitions Related to the Opening to the Public the Details of Political Fund Donations

  ① When the relevant Commission opens to the public the details of revenues of political funds, the personal matters and amounts of a donor who donates less than 3 million won per year (referring to five million won in the case of Political Fundraising Association of candidates and reserve candidates for the Presidential election and candidates for the intra-party competitive election for the Presidential election) shall not be made public and the fact that the small donor has contributed is blocked from being disclosed.
  ② Also, no one shall be allowed to post a notice of the details of contribution of political funds on the internet for the political purpose and any infringement is punishable by law.

• Making Requests for Objections to the Details of Assets Situation, the Revenues and Disbursements of the Political Fund etc. (Article 42 Clause 6 or Clause 9)

  Subject of Objections, Period, and Ways of Raising an Objection

  ① Any person who has an objection to the details of the assets situation, the revenues and disbursements of the political fund and attached documents, is permitted to submit a written application of objection attached with documentary evidence to the Election Commission during the period of inspection.
  ② The application of objection must be recorded with the following details, and sealed and signed by the applicant of objection.

  • Name, Resident Registration Number, Address and Occupation
  • Tangible fact that is the subject of the application of objection
  • Documentary evidence explaining the reasons for the application of objection

  Procedures of Processing Application of Objection

  An objection raised past the period for application of objection, or an application where a revision was requested but was not revised within a set period of time, is dismissed.
  The application of objection that is deemed to have a justifiable reason is processed as below:

  • Request for Submission of Explanatory Material
    The relevant Election Commission has the power to request the explanatory material from political parties, supporters’ associations, members of the National Assembly with supporters’ association, candidates for the intra·party competitive election for the Presidential election, candidates for party leadership election, candidates and reserve candidates for election of public officials, or treasurers and other related persons (hereafter referred to as the “political parties etc.”), and the political parties etc. that have received the request must submit the explanatory material within seven days of receiving the request.
  • Interrogation, Investigation, Verification and Notification of Results
    The relevant Election Commission shall interrogate within 60 days of receiving the application of objection political parties etc. on the item of application of objection, its documentary evidence and the submitted explanatory material, or investigate and verify the related account books, documents and other necessary evidence, and notify the applicant of objection the explanatory material in regard to the item of application of objection and the result of investigation and verification.
    
    However, in the case where the submission of copies of receipts and other documentary evidence is exempted by law (Article 39 Clause 3 where the provision of documentary evidence is not required), the object is exempt from investigation and verification.
  • Laying Charges, Request for Police Investigation etc.
    The relevant Election Commission has the power to lay charges or resort to other necessary means such as requesting for a police investigation etc. if the political parties etc. do not respond to the request for explanatory material or interrogations or verifications without sufficient reason, or if the fact investigated and verified is believed to have substantial reasons to be in violation of the law.

• Processing Application of Objection about Election Expenses (Article 42 Clause 8)

  The relevant Election Commission that has received an application of objection about election expenses is to process the matter as below:

  Notification for the Submission of Explanatory Material

  A treasurer or other related persons shall be notified to submit the explanatory material in regard of the matter of objection, and the treasurer or other related persons must submit the explanatory material within seven days of receiving the notification.

  Public Announcement & Notification of the Details of Explanation etc.

  The relevant Election Commission must make open to the public the details of the application of objection and the explanation when the explanatory material was received, or the details of the application of objection and the lack of explanation when the explanatory material was not submitted, and should immediately notify the applicant of objection of the fact.

• Request for the Submission of Material etc. (Article 43)

  Persons Who Hold the Right to Request for Investigation, Report, or Submission of Mate

  Commissioners and employees of the Election Commission of all levels (Eup/Myeon/Dong Election Commissions excluded) (Article 43 Clause 1)

  Subject of Investigations etc.

  Political Parties, candidates and reserve candidates for an election of public officials, treasurers or persons who are eligible to receive election expenses, and other related persons (Article 43, Clause 1).

  Investigation into the Revenues and Expenditures of Election Expenses

  The commissioners and employees at all levels of Election Commission shall investigate election expenses in the following instances (Article 43, Clause 1).
  ① When the need for a verification of the revenues and expenditures of the election expenses is recognized
  ② When the Commission becomes aware or receives a report of an offence regarding the revenues and expenditures of the election expenses
  ③ When the inclusion of falsehood is found on the financial report or related accounting documents, or other illegal activities were discovered due to the application of objection and explanatory material

  Details of Investigation etc.

  It is allowed to investigate those who have the right to view the accounting books and other related documents, or political parties, candidates and reserve candidates for an election of public officials, treasurers or persons who are eligible to receive election expenses, and other related persons, and inspect and request the submission of relevant material (Article 43 Clause 1)

  Measures Against the Inclusion of Falsehood, and Expenditures Illegal or Exceeding the Legal Limit

  When the inclusion of falsehood, evidence of illegal expenditures or expenditures exceeding the legal limit or other violation of the law are recognized in the accounting books and other related documents or on the financial report, the relevant police authority must be contacted to lay charges or resort to other means such as requesting for a police investigation etc.
  ※ The expense for delivery of copies shall be paid in fiscal stamps.

• Importance of Restrictions on Political Donations

  As political funds by nature are subject to corruption and often entail conditions or price, there is a need to prevent any person who is liable to create such a situation from making a contribution at the earliest possible stage.
  
  Thus, there is a need to protect political parties and politicians from being influenced and used by external interests in the political arena by blocking the entry of foreign nationals, corporations or organizations into domestic politics through the contributions to political funds, and eliminating the inappropriate relationship from forming between corporations, organizations and the political circle.

• Those Who Are Ineligible to Make Political Contributions etc. (Article 31)
  • The Political Fund Act defines foreign nationals, corporations and organizations both foreign and domestic as those who are ineligible to make political donations (Clause 1).
  • Also, no one is permitted to make political contributions with the fund related to corporations and organizations both foreign and domestic (Clause 2), and the corporations and organizations are also not allowed to use their employees, constituents or family members to make the donations expediently. ※ In case of public officials who are not applicable to Article 2「Regulation of a range of public officials in accordance with The National Public Service Act Article 3 Clause 3」are not permitted to contribute supporting money stipulated in 「The Political Fund Act」to Political Fundraising Association for the political purpose in accordance with 「The National Public Service Act」and Government Officials Service Regulations」.
• Restrictions on Contributions for Specific Purposes (Article 32)

  No one can give or receive political funds in relation to the following activities.

  • Nominating a specific person as a candidate for an election of public officials
  • Election of the Chairman and Vice Chairman of Local Councils, and appointment of the Directors and Deputy Directors of Board of Education, Superintendent of Schools and members of the Board of Education
  • Soliciting and conciliating on administrative matters processed by public officials
  • Profiteering or soliciting others to gain official positions or rights to properties through contracts with or disposal of the corporations founded by the State, public organizations or special legislations, corporations where over half of the stocks or interests are owned by the State or local autonomous governments, corporations that received subsidies both directly and indirectly from the State or public organizations, or the corporations guaranteed or invested by the government.
• Restrictions on Pressuring for Contributions (Article 33)
  • This Article states that, “No one is permitted to conciliate for contribution by unfairly oppressing the opinion of others through the use of work, employment and other relationships’
  • and it indicates that the political donation shall be made based on the free will of the donor which is to be protected as the donor’s free will is derived from the person’s political belief.
  • If political donations are made through force or by compulsion then the country would not be called a democratic nation where the political freedom is guaranteed by the Constitution.

• Tax Exemptions for Political Contributions (Article 59)

  The system of tax exemption on political donations was established in consideration of the atmosphere where political donations are shunned, to encourage voluntary contributions and facilitate the transfer of funds by endowing tax benefits on the donors of political funds.

  Subjects of Tax Exemption

  ① A person who as legally contributed to political funds in accordance with the Political Fund Act. Thus, the tax exemptions are applicable to the party membership fees paid by party members, donations made by supporters to the supporters’ associations, and the money deposited by individuals at the Electoral Commissions.
  ② A person who has made political donations of under 10 thousand won per donation and under 1.2 million won per year by transferring money into a political funds deposit account opened under the name of a supporters’ association can use the certificate of financial deposit transaction that contains the donation details including the name of the supporters’ association, the personal matters of the donors such as the name, the date of birth, and the date and amount of transaction, or use the original of electronically processed receipt that has built·in devices to protect against forgery, copy or modification as receipts for tax exemption.

  Method of Tax Exemption

  ① As in accordance with the Article 76 of the Restriction of Tax Reduction and Exemption Act the income tax and donation tax equivalent to the amount of political donations given to the political parties etc. are exempted,
  ② but for the donations made by individuals up to 100 thousand won is deducted from the donor’s income for the tax year, and any exceeding amount is either deducted from the income or calculated as a pecuniary loss from the donor’s income after deducting the deficit carried over from it.

  Cases of Exception to Tax Exemption

  ① Donations made anonymously to supporters’ associations
  ② The party membership fees paid or donations made to the supporters’ association with the political fund donated and given by the supporters’ association or registered political party are not eligible for tax exemption.

• Encouraging the Contributions of Political Funds etc. (Article 60)

  To create a culture of political donations, the Election Commissions are given the responsibility of advertising and promoting the donation or deposition of political funds as the following.

  • The promoting principals are the Election Commissions of all levels (Eup/Myeon/Dong Election Commissions are excluded).
  • The content of promotion involves the necessity, methods and procedures of donating and depositing political funds,
  • and the promotional activity is to make the use of media such as prints, buildings and advertising materials.
• Advertising Broadcasts for the Raising of Political Funds (Article 61)

  To create a culture of political donations, the ground·wave broadcasting stations are given the responsibility of broadcasting public service advertisements to encourage the donation or deposition of political funds as the following.

  • The advertising principals according to the 「Broadcasting Act」 are the ground·wave broadcasting stations, and the advertising costs are defrayed by the broadcasting station.
  • The advertisements are the public service advertisements that deal with creating a culture of political donation.
  • The advertising material for broadcast are produced by the Korea Broadcasting Advertising Corp. at its cost, and shall be provided to the ground·wave broadcasting stations at least once a year.
  • When the Korea Broadcasting Advertising Corp. is to produce an advertising material for broadcast, the theme of the advertisement must be agreed by the National Election Commission.
• Exclusions to the Enforcement of the「Act on the Regulation of Donations Collection」 (Article 62)
  • The「Act on the Regulation of Donations Collection」is not enforced when donating or receiving political funds in accordance with the provisions of the Political Fund Act.
  • Donating or receiving political funds can be subjected to the「Act on the Regulation of Donations Collection」 that is the general law on the collection of donations, but the enforcement of the said law has been limited on political funds to facilitate the supply of political funds.
• Responsibility of Maintaining Secrecy (Article 63)

  The Political Fund Act prohibits the commissioners and staff of the Election Commissions from divulging any privileged information obtained during work not only while in employment but also in retirement, to protect the private information in relation to the donation of political funds and provide a systematic security in order to facilitate the supply of political funds.
  
  The responsibility of maintaining secrecy, which is a general responsibility according to the Public Service Act has been provisioned separately in the Political Fund Act as the need for secrecy is required urgently on the sources of political funds etc.
  
  The freedom to supply political funds is a part of the political freedom of citizens and is a basic right protected by the Constitution, thus it must be guaranteed all the more thoroughly.