Chapter 1: What is Political Funding?

Section 1. Meaning of political funds and scope of application of the Political Funds Act
1.
Definition of Political Funds 3
2.
The Need for Political Funding Regulation 5
3.
Public Election Candidacy and Application of Political Funds Act 6
4.
Political Participation of the General Public and the Application of Political Funds Act 7

Section 2 Legal political funds raised publicly
1.
The Meaning of Publicly Raised Political Funds 9
2.
Party dues paid by party members to their respective political parties: 10
3.
13. Sponsorship money donated by sponsors to the sponsorship association
4.
14 Subsidies paid to political parties from the national budget
5.
17 Deposits paid to political parties through the National Election Commission

Section 3 Illegal political funds provided verbally
1.
19. Providing political activities to those engaged in political activities
2.
Scope and criteria for political activity 20
3.
Meaning of providing for political activities 26

Section 4 Legal and illegal donations of political funds
1.
Implications of Political Donations 30
2.
Definition of donation under the Political Funds Act 32
3.
33 Requirements for Considering a Political Donation
4.
Procedures and Methods for Legal Donations 36
5.
37 Cases of Illegal Political Donations

Chapter 2 Principles on Political Fund Income and Expenditure

Section 1 Comprehensive regulatory principles regarding political donations
1.
The Significance of Comprehensive Regulatory Principles 45
2.
Key Contents of Comprehensive Regulatory Principles 46

Section 2 Principles of Real-Name Donations of Political Funds
1.
The content and significance of the real-name donation principle 50
2.
Prohibition on donations made under another person's name or under a pseudonym 51
3.
Reporting and Disclosure of Major Donors' Personal Information 52

Section 3 Principle of Real-Name Expenditure of Political Funds
1.
Contents of the Real-Name Spending Principle 54
2.
Case 55 of Violation of the Real-Name Spending Principle
3.
Penalty 57 for Violating the Real-Name Spending Principle

Section 4. Principle of Prohibition of Expenditures for Private Expenses and Improper Use
1.
Contents of the Principle of Prohibition of Expenditures for Private Expenses and Misuse 59
2.
Application of the Principle of Prohibition of Expenditures for Private Expenses and Misuse 60
3.
Case 62 determined as private expense
4.
Case 64 of spending for illicit purposes
5.
Example 68 of legitimate spending

Section 5: Principle of Disclosure of Political Funds
1.
The Significance of the Principle of Political Fund Disclosure 73
2.
74. Maintaining accounting books and recording income and expenditures
3.
Political Funding Accounting Reports and Public Disclosure 76


Chapter 3: Establishing a Support Group and Fundraising Methods

Section 1 Establishment of a support group and its operation method
1.
The Significance of the Political Funding Support System 81
2.
83 people who can form a support group
3.
What about the extra-parliamentary party committee chairperson? 88
4.
Support Group Establishment Procedure 90
5.
How to run a support group 95

Section 2 Promotional Methods for Fundraising
1.
Fundraising Promotional Strategies Overview 101
2.
Sending and distributing invitations 102
3.
Newspaper and Magazine Advertisements 104

Section 3. Methods of fundraising and donations for the sponsorship association
1.
Overview of the Sponsorship Fundraising Methods 106
2.
Fundraising Using Information and Communication Networks 107
3.
Fundraising via credit card and deposit account 108
4.
Fundraising through political fund receipts 108
5.
Notes on Fundraising and Donations 110

Section 4 Limits on fundraising and donations
1.
The significance of fundraising and donation limits 115
2.
The fundraising and donation limit for the support group is 116.
3.
Sponsor donation limit: 118

Section 5 Tax Reduction for Donors
1.
Key Contents of the Political Funds Tax Reduction System 120
2.
Political funds excluded from tax deductions 121
3.
Scope of Receipts for Tax Reduction 122


Chapter 4 Prohibition on Accepting Political Funds Other Than Donations

Section 1 Overview of the Prohibition on Accepting Political Funds Other Than Donations (§45①)
1.
The purpose of regulating with comprehensive constituent elements 125
2.
The Meaning of the Elements of the Crime of Receipt of Political Funds 127
3.
130 Exemption from Punishment for Accepting Illegal Political Funds Between Relatives
4.
Sanctions other than criminal penalties for accepting political funds 132

Section 2 Who is a politically active person?
1.
The Meaning of a Politically Active Person 136
2.
A congressional aide is a person who engages in political activities 138
3.
139 members of a political party that attracted investment using nominations as bait
4.
140 prominent figures who are not eligible to vote but are actively involved
5.
141 Former Speaker of the National Assembly who took up party office after retiring from politics
6.
142 potential candidates who received money in exchange for dropping out of the race
7.
143 Heads of Campaign Headquarters for Gubernatorial Candidates
8.
144 Chief Secretary to the Governor Banned from Political Activities
9.
Forum 145 for Mayoral Candidates

Section 3: What constitutes money for political activities?
1.
The Meaning of Giving Money for Political Activities 147
2.
Corporate cards can also be used as political funds. 148
3.
Opinion poll reports also constitute political funds, but 150
4.
Case 151: Election Campaign Materials Considered Political Funds
5.
152 When a company's consulting fees become political funds
6.
The Risks of Paying the Sponsorship Association's Accountant's Personnel Expenses on Behalf of the Member 153
7.
The nature of the wages of the spouses of members of the National Assembly and their drivers 154

Section 4 Other Issues Concerning Illegal Receipt of Political Funds
1.
156 When the claims of the provider and recipient are different
2.
The Relationship Between Political Funds and Bribery Under Criminal Law 157
3.
Requirement 160: Only those who receive political funds are punished
4.
161. If you receive political funds and use them for other purposes
5.
162 Cases where criminal trial attorney fees become political funds
6.
The Dangers of Campaign Office Opening Ceremony Congratulatory Gifts 163
7.
Requirements for Recognition as Paid Political Fund Loans 164
8.
Different judgments on the same person depending on change in status 165
9.
16 Monetization Activities on Social Media, Including YouTube


Chapter 5: Prohibition and Return of Contaminated Donations

Section 1: Overview of the Prohibition on Contaminated Donations
1.
The Meaning of Banning Contaminated Donations 173
2.
175 Typical Types of Contaminated Donations
3.
Penalties and Sanctions for Accepting Contaminated Donations 176

Section 2 Prohibition on donations by corporations, organizations, and foreigners (§31)
1.
Prohibition on donations from foreigners 177
2.
Prohibition on donations by corporations and organizations 178
3.
Prohibition on donations to corporations and organizations 180

Section 3: Prohibition of donations with tainted intentions (§32)
1.
Prohibition on donations related to candidate recommendations 183
2.
Prohibition on donations related to local council elections 185
3.
Prohibition on donations related to solicitation or brokerage of public officials 187
go.
Contaminated Sponsorship Prohibited / 187 B.
The Meaning of Prohibitions / 187
all.
Cases of sponsorship through solicitation and brokerage / 189.
Relationship with Bribery / 190
4.
Prohibition on donations related to contracts or dispositions with public corporations 191

Section 4: Prohibition of Soliciting Donations of Funds by Oppressive Methods (§33)
1.
The purpose of prohibiting the solicitation of donations through oppressive methods 193
2.
The Meaning of Suppressing the Will of Others 194
3.
Meaning of arranging donations 195
4.
Actual cases of punishment 196

Section 5 Procedures and Methods for Returning Illegal Sponsorship Funds (§18)
1.
Type 198 of Illegal Contributions Returned or Reverted to the National Treasury
2.
Procedures for Returning Illegal Donations and Returning to the National Treasury 200
go.
Return to sponsor / 200 b.
National Treasury Contribution Method / 201
3.
Political Fund Receipt Recovery 202





Chapter 6 Appointment of Accounting Manager and Accounting for Political Funds

Section 1. Appointment of an Accounting Manager and Requirements for Concurrent Positions
1.
The Significance of the Appointment System for Political Fund Accounting Managers 205
2.
206 Politicians Who Need to Appoint an Accountant
3.
207 Persons who may be appointed as Accounting Officer
4.
Requirements for concurrent positions between accounting managers 208
5.
Method of Reporting Appointment/Change of Accounting Manager 209

Section 2 Income and expenditure by accounting manager and deposit account
1.
Principles and Exceptions to Income and Expenditure Accounting by the Accounting Manager 212
2.
Political Fund Income and Expenditure through Deposit Accounts 216
3.
218. Accounting ledgers and income and expenditure records
4.
222 Prepare supporting documents such as receipts

Section 3 Political Fund Accounting Report and Disclosure of its Contents
1.
The Significance of Political Fund Accounting Reporting and Disclosure Systems 226
2.
Accounting Reporting Timing and Reporting Items 227
3.
Reporting Personal Information of Major Donors 231
4.
Accounting Report Co-signature and Internal Controls 232
5.
233 Inspection, public inspection, and issuance of copies of accounting reports
6.
Objections and Verification of Accounting Reports 235
7.
Transfer and preservation of accounting books 236

Section 4 Issues Surrounding the Political Funds Accounting System
1.
Person responsible for payment of unpaid election worker allowances 237
2.
Scope of retroactive expenditure of candidate and prospective candidate donations 239
3.
Statute of limitations for political fund crimes related to election expenses: 240
4.
The Forgotten Condition for Permitting Political Party Sponsorships 241



Chapter 7 Disposition of Remaining Assets, including Conservation Costs and Sponsorship Funds

Section 1. Handling of the candidate's remaining assets, including conservation costs
1.
The losers and winners of the local government head elections will receive their remaining assets. 247
2.
Elected members of the National Assembly continue to use the money for political funds. 249
3.
250. Return of unclaimed residual assets to the national treasury

Section 2 Return of remaining party support funds to candidates
1.
Political party financial support for candidates 252
2.
Return of the remaining balance of candidate party support funds 253

Section 3. Handling of sponsorship associations in accordance with changes in the status of designated rights holders
1.
The preliminary candidate support committee is considered a candidate support committee 254
2.
The candidate support committee of the elected official will remain as a member support committee 255
3.
Reporting and Handling Disbanded Support Groups 256
Section 4 Disposition of Residual Assets of Dissolved Supporters and Designated Holders
1.
Disposition of the remaining assets of the sponsorship association 257
2.
Disposition of Remaining Assets of Sponsor Designated Holders 258
3.
259. The remaining assets of those who have given up or lost their qualifications are returned to the national treasury.



Chapter 8 Crimes of Accounting Officers That Invalidate Election

Section 1 Overview of invalidation of election due to crime of accounting manager
1.
Scope of Accounting Managers Subject to Invalidity of Election 265
2.
Crimes and Sentences Subject to Disqualification 267
3.
The Effects of Political Crimes by Accounting Managers 270

Section 2 Invalidity of election due to illegal receipt of political funds
1.
Type 273 of the crime of accepting political funds
2.
Crime 274 of invalidating election among the crimes of accepting political funds

Section 3 Invalidity of election due to excessive expenditure of election expenses
1.
Overview of Election Expenses and Election Expense Limits 276
2.
277 Invalidity of election due to exceeding election expenditure limit
3.
Appropriate Spending on Election Costs 278

Section 4 Invalidity of election due to failure to report or false reporting of election expenses
1.
280 Invalidity of election due to failure to report accounting
2.
282 Invalidity of election due to false reporting of election expenses
3.
289 Invalidity of election due to falsification or omission of election expenses
4.
291 Things to Note When Requesting Election Expense Reimbursement

Section 5 Invalidity of election due to false information or forgery of supporting documents
1.
295. Invalidity of election due to false or falsified documentation
2.
296 cases of punishment for false or forged documentation
3.
The Relationship Between False Reporting and False Entry 297


Chapter 9 Crimes subject to fines for restricting voting rights

Section 1. Right to vote restricted by political funding crimes
1.
303 Restrictions on exercising sovereignty, including voting rights and referendum rights
2.
Restrictions on political activities, including joining political parties and support groups 304
3.
Restrictions on freedom of expression, including election campaigns 304
4.
Restrictions on Eligibility for Public Official Elections 305
5.
Restrictions on public service positions 306

Section 2. Crime of Receipt of Political Funds (§45)
1.
Overview of the Political Fund Fraud Crime 308
2.
Establishment and operation of a support group by an unauthorized person 30
3.
Violation of fundraising and donation limits by sponsors and supporters 310
4.
Violation of Fundraising and Promotion Methods 314

Section 3. Important Election Expense Crimes (§49)
1.
Overview of Political Funding Crimes Related to Election Expenses 316
2.
Failure to Report Election Expenses and False Reporting Act 319
3.
319. Forgery and alteration of election expense receipts and other supporting documents.

Section 4 General Election Expense Crimes (§49②)
1.
Violation of the Real-Name Principle for Election Expenses and Income 321
2.
Accountant/Deposit Account Failure to Report Crime 323
3.
Crime of Income and Expenditure of Election Expenses by Persons Other Than the Accounting Manager 324
4.
Crime 327: Income and expenditure of election expenses outside of deposit accounts
5.
Failure to notify presidential candidates of election expenses, 330
6.
Violation of Accounting Bookkeeping and Recording Obligation Act 331
7.
Failure to submit a copy of a bankbook when filing an accounting report, Article 332
8.
Failure to submit materials or submission of false materials 332
9.
Violation of the duty to transfer and preserve accounting books, etc. Article 333



Chapter 10 General Political Funding Crimes and Fines

Section 1 Violation of various restrictions (§46)
1.
Falsification and misuse of political fund receipts 337
2.
Disclosure of the Sponsorship Association Membership List 339
3.
Donation of donations using borrowed funds 339
4.
Disclosure of Political Fund Receipt Serial Number 340
5.
341. Incomplete accounting records and false statements
6.
Failure to comply with accounting reports, falsification, etc. 341
7.
343 Leakage of confidential information by National Election Commission members and staff

Section 2 Violation of various mandatory provisions (§47)
1.
345 Illegal expenditure of political funds for private purposes, etc.
2.
Violation of the deadline and method for issuing political fund receipts 346
3.
Violation of the obligation to transfer political fund receipts and donations 347
4.
Violation of the obligation to report political fund deposit accounts 348
5.
Failure to hand over or take over accounting books, etc. 348
6.
Political Fund Income and Expenditures by Persons Other Than the Accounting Manager 349
7.
Political Fund Income and Expenditure Outside of Deposit Accounts 351
8.
354 Insufficient, false, forged, or altered supporting documents
9.
CPA's False Audit Report on Political Parties 355
10.
Use of political donation records for political purposes 356
11.
Violation of the Political Fund Crime Reporter Protection Regulations 356
12.
358 cases of refusal to cooperate with investigation into political funding crimes and obstruction of entry and exit

Section 3. Offenses of Negligence of Supervisory Duty, etc. (§48)
1.
Article 360 ​​of the crime of neglecting the duty of supervision of the accounting manager
2.
Violation of the Real-Name Principle for Political Fund Income and Expenditures (Crime 361)
3.
Article 363: Political Fund Donations under a Pseudonym or Borrowed Name
4.
Failure to Return Residual Assets and Illegal Funds to the National Treasury, Article 365
5.
Other Political Funding Crimes 365

Section 4. Dual Punishment Provisions for Political Fund Crimes (§50)
1.
Overview of the Political Funds Act's Dual Penalty Provisions 367
2.
Requirements for application and exemption from liability under the double penalty provisions 368
3.
Case Study 371 of the Application of the Double Penalty Regulation

Section 5 Imposition and collection of fines (§51)
1.
Political Funds Act's Penalty System 373
2.
374 Subjects to Fines Related to Election Expenses
3.
375 Subjects of General Political Fund-Related Fines
4.
Procedure for Imposing Fines under the Political Funds Act 377
5.
Objections and Trials on Fines 378



Chapter 11 Investigation of Political Fund Crimes and the Rights of the Investigated

Section 1 Overview of the Power to Investigate Political Fund Crimes
1.
The purpose of granting investigative powers to the National Election Commission 383
2.
384 Subjects Exercising the Right to Investigate Political Fund Crimes
3.
Requirements for Exercising the Right to Investigate Political Fund Crimes 385
4.
Compliance with the Miranda Rights When Exercising Investigative Powers 386

Section 2 Main contents of the power to investigate political funding crimes
1.
Right to Question and Investigate 392
2.
Venue Entry Ticket 393
3.
Right to Request for Submission of Materials 394
4.
Right to Request Submission of Financial Transaction Data 397
5.
Right to collect evidence 398
6.
Right to request accompaniment and attendance 399

Section 3. Rights of the accused for defense
1.
Unlawful Investigation Refusal 401
2.
Right to Refuse to Testify 402
3.
Right to Assistance of Counsel 403
4.
Application of the Exclusion Principle for Illegally Obtained Evidence 405

Section 4 Rewards and Protection for Reporters of Political Fund Crimes
1.
Reward for Reporters of Political Fund Crimes 412
2.
Refund of the Bounty and its Requirements 413
3.
Protection of Whistleblowers of Political Fund Crimes 414


Chapter 12 Special Criminal System for Political Fund Crimes

Section 1 Special provisions concerning trials of political funding crimes
1.
Trial in Default and Sentencing 421
2.
Delivery of notice of indictment and final judgment 422

Section 2: Separate sentencing of crimes and punishments for invalidating elections
1.
The Purpose of the Election Invalidation System 423
2.
Requirements for invalidation of election due to political funding crimes 424
3.
Separate Sentencing of Crimes Subject to Election Invalidation 426

Section 3. Separate sentencing of crimes and punishments for voting rights restrictions
1.
Crimes subject to fines and restrictions on voting rights 428
2.
Purpose of Separate Sentencing for Crimes Restricting Voting Rights 429
3.
Trial Procedures for Separate Decisions 430
4.
Handling Imaginary Competitors 430

Section 4 Necessary confiscation and collection of illegal political funds
1.
Necessary confiscation system for illegal political funds 432
2.
Special Provisions Regarding the Scope and Requirements of Forfeiture 433
3.
Confiscation and Preservation Procedures and Appeals 435

Appendix: Political Funds Act 439

Search 483

When publishing a book

Just as the Public Official Election Act gradually expanded the freedom of election campaigning without compromising the fairness of elections, the Political Funds Act has also aimed to facilitate the smooth creation of political funds without compromising the transparency of income and expenditures.
The legislative reform that allowed support groups for candidates and prospective candidates in the January 2021 local council elections, and then expanded it to incumbent local council members starting in July 2024, is vivid evidence of this.

Typically, political funds can be understood as money or goods necessary for political activities, and political activities are defined as the struggle to acquire power and the act of exercising power.
In this respect, political funds are both the mother of political activity and a necessary evil.
To reconcile these conflicting goals, the Political Funds Act exhibits a Janus-like appearance as both a creation law and a regulatory law.
The exquisite balance is beautiful.

On the bright side of political funding, institutionalized political funding includes party dues paid to political parties, donations to support groups, subsidies allocated from the national budget and paid to political parties, and deposits paid to the National Election Commission and distributed to political parties.
All of them have the characteristics of being publicly formed and place emphasis on smooth formation.
However, party dues and sponsorships cannot be donated or received if the purpose or intent of the provision is contaminated.

On the other hand, there is the dark side of political funding, which is received in a vocal manner.
Any money or valuables provided to a person for political activities without following the methods stipulated in the Political Funds Act are illegal, and therefore, criminal penalties apply to receiving such political funds.


Political Funds Act has strong procedural and technical aspects, but to properly understand its essential content, three-dimensional thinking is necessary, like exploring the underwater terrain.
When it comes to raising political funds, exploring shallow waters like the continental shelf is sufficient, but when it comes to regulation, it requires deep consideration, like exploring the Mariana Trench.
This is because the Political Funds Act is a record of our reflections and introspection on the political corruption in our modern history, and a support to prevent its recurrence.

This book is a commentary for those interested in politics, politicians, and supporters.
Although the Political Funds Act is not thick in nature, to help readers understand, we dissolved the text into a plasma state and extracted and explained the necessary elements by topic.
Through this book, I hope readers will understand the structure of political funding and the boundaries of illegality, and be able to boldly venture into the brighter realm of political funding.

Even if it is the same water, if a snake drinks it, it becomes poisonous, but if a cow drinks it, it becomes milk.
If we hope for democracy to flourish beautifully through clear and transparent politics, we must all be prepared to become cows.

Thanks to the encouragement and supervision of my beloved wife, I was able to complete a series of writings.
I also extend my special thanks to two people who have been my lifelong benefactors in public service for the publication of this book.
Former Central Election Commission Standing Committee Member Moon Sang-bu wrote a letter of recommendation, and former Prosecutor General Kim Dae-nyeon drew the cover of this book, following his work on “Election Law Lectures for New Politicians.”

Former Standing Committee Member Moon Sang-bu is working hard to rectify the Central Election Commission, despite all the misunderstandings, and former President Kim Dae-nyeon is opening a bunker gallery on the Imjin River hill and painting the whispers of weeds.
I don't think it's right to blame the coup d'état alone for the flowers withering.

2025.
12.

Dreaming of a politics of tolerance and integration

I recommend this book

I remember the moment I first met the author.
Fifteen years ago, when I was working as the deputy director of the National Election Commission, I first encountered him through his voice on MBC Radio's "Son Seok-hee's Focus," which I enjoyed listening to on my way to work.
The author, who appeared on the program as the head of the public relations team at the National Election Commission at the time, did not lose his humility, but he could not hide his firm will to protect fair elections.
His explanations of the technical terms related to electoral systems and political funding brought them within earshot of the listeners.

At that time, I made a promise to myself.
I had already decided early on that if I became Secretary-General, that person would be the secretary who would stand by my side.
Indeed, as a secretary, he helped me with the rich and profound insight of a Renaissance intellectual.
In June 2013, when I presented my reformative proposal for amending the election law to "permanently allow election campaigning by phone and speech," he wrote a high-quality statement that reflected the purpose of the reform proposal and reflected constitutional values.
The announcement was broadcast live on several broadcasters and has been incorporated into legislation today.

Afterwards, he demonstrated outstanding capabilities while serving in key positions at the National Election Commission, including Director of the Legislation Division, Director of the Legislation Bureau, Director of the Election Policy Office, and Director of the Planning and Coordination Office.
Even after retirement, he remained my pride and joy.

It is regrettable that the author was not given greater responsibility in public office, but it turned out to be a blessing in disguise. As the leading expert of his time, he finally published this book, following his commentary on the Public Official Election Act and the Consignment Election Act.
The complex political law, once the exclusive domain of experts and executive agencies, was finally brought to life through his work, reinterpreted in the language of the people, and now returned to the bosom of its original owners, the sovereign people.
This is a valuable achievement above all else.

This happened about ten years ago when I was trying to erect a tombstone at my grandparents' grave.
My father wrote the epitaph with a passionate lament and a four-part poem, but if we were to engrave it as it was, the stele would have to be as large as the Gwanggaeto Stele.
In a difficult situation, he took the manuscript and said, “Please give it to me,” and the long handwritten manuscript soon turned into six lines of poetry.
My father was also very pleased, so it was the greatest filial piety I could have done.

Although it is extremely personal and embarrassing to reveal, I would like to introduce the author's sentence engraved on the epitaph.
I would like to share this precious record of my grandparents' lives with you with gratitude.

A nobleman with physical discomfort
The wise man's whip awakened my blind eyes.
We will polish the process and raise the spirit of the scholar.
He protected the peace of the village with fairness and wisdom.
A kind-hearted woman
He starved himself to feed the hungry mother.

Thinking of my late father, who passed away this year, I feel the fragrance of his poetry again in this book.
Although the dry topic of political funding law was unraveled in prose, I was able to discover a rhythm that I felt in my grandparents' epitaph.
That is the essence and hidden song of the Political Funds Act.
I hope you all can feel that resonance too.

2025.
12.

Moon Sang-bu, former standing member of the National Election Commission