Political Fund Designated Favorite Party, Past Violations Have to be Exempted After Confession

The Federation of Korean Industries announced the improvement plan for the political fund system, which is based on a rebirth of the designated trust money system, on November 5. In connection with violation of the past political fund law, the Federation of Korean Industries also proposed “a political organization’s pre-sacrament of penance-a post-examination-a pardon based national approval.”

Hyun Myung-kwan, the vice-president of the Federation of Korean Industries, held a press meeting and announced the improvement plan the same day.

The designated trust money system, proposed by the Federation of Korean Industries, permits a corporation to offer political money to a party or politician which is aligned with the corporation’s political viewpoint. The Federation of Korean Industries’ proposal is that if a corporation designates a party, then the corporation can offer that party trust money, but if it doesn’t, the corporation should distribute the money according to the national subvention distribution system.

Stating that there have been many forced political fund raising cases since the law permits a corporation to donate directly to politicians and political associations, the Federation of Korean Industries proposed the improvement plan so that a corporation should offer trust money through an economic organization or through the Central Election Management Committee.

The Federation of Korean Industries made their position clear in opposing an election administration commission plan to offer 1 percent of corporation tax as a political fund, by asserting that it is subjected to partial taxation.

It proposed that political money should come through an appointed account which reports to an election administration commission, and if a political donor gives more than 200,000 won, then this action should be revealed to the public. It also proposed that when a corporation gives political money, it should be approved by a regular stockholders’ meeting.

The Federation of Korean Industries insisted that a special law to exempt a corporation from civil liability concerning political donations should be established. It also proposed that when establishing a law of legal procedure for the securities group, a special article to exempt window-dressing settlements should be included for an effective discontinuation with the past.

Concerning later law violation, it proposed a 10-year prolongation of prosecution prescription and a long-term ban of election eligibility.

The Federation of Korean Industries said that concerning these matters, it is discussing an improvement plan for the political fund law with an election administration commission, and the common proposal (something both parties have to agree to) will be established soon.

Jong sik Kong kong@donga.com