Investigation into the Use of National Subsidies and Contributions in 2015

Through Investigation to determine if any cases of illegal political funds, illegal expenditures, false accounting reports or other violations have occurred

The National Election Commission (NEC) of the Republic of Korea has announced that from February 1, 2016 begins an investigation into the current status of 394 billion won (323 million USD) of national subsidies given to political parties and how the National Assembly members and their Political Fund Associations (PFAs) raised and spent any political funds. 

This investigation plans to conduct spot probes alongside examinations of the 740 financial reports provided by the political parties, National Assembly members and the PFAs of National Assembly members by the 550 staff at the political funds investigation team. 

In particular the following will be the focus of the investigation: 

● The receipt or raising of illegal political funds such as goods or services in return for a contract 

● Providing false financial reports, including willfully reducing, enlarging or omitting the reports 

● Violation of the distribution and allocation rate or the regulations of national subsidies 

●Any illegal contributions donated by corporations or organizations in return for any favor or contributions under either another person’s name or a false name.

The NEC investigates the submitted financial reports and refers to cases or previous violations or any current violation trends. It also plans to take strict action, such as prosecutions, against violations after analyzing financial transactions data, investigating in the field and collecting evidence.

In order to eradicate political funding violations, the NEC above all is offering a reward of up to 500 million won (420,000 USD) to those who report violations or supply relevant information, therefore emphasizing that the reporting of violations is the most important method of preventing violations. The NEC urges people to report violations from anywhere by calling 1390.