If expenses were incurred for Han Deok-soo's promotional materials, is it possible to recoup them? Legal issues examined through the example of the People's Power Party.

presidential election, candidates, expenditures

Problem Overview

With the 21st presidential election approaching, it is being reported through YouTube channels that the People Power Party has considered Han Duck-soo as a strong candidate and has executed expenditures related to the election. Kim Moon-soo has been confirmed as the final candidate, and if he runs in the election and secures a certain percentage of the votes, he will be eligible for reimbursement of election expenses. In this process, the issue of whether expenditures made for the initially considered candidate (if any were made) can be legally reimbursed or recovered has been raised.

Summary of Issues

The legality of campaign expenditures before candidate registration is being discussed from various perspectives. Issues raised include whether expenditures for unregistered candidates are recognized as election expenses, the items and requirements for reimbursement of election costs, the distinction between intra-party primaries, strategic nominations, and official election expenses, and the possibility of cost recovery due to candidate changes. Additionally, there is a need for discussion on these institutional loopholes and directions for improvement.

Legal Review

When examining the legal limits of expenditures before candidate registration, the Public Official Election Act restricts official election campaigns to after candidate registration. While certain activities are allowed within a specific range during the preliminary candidate registration, campaigning while not officially being a candidate is generally considered illegal pre-election campaigning. Such expenditures are not recognized as election costs and cannot be reimbursed. It is also clearly stated that the election costs of preliminary candidates are not eligible for reimbursement (Public Official Election Act Article 122-2, Paragraph 2).

Accounting treatment of expenses for unregistered candidates

Han Duck-soo is not the final candidate, so the expenditure for him is not classified as 'campaign expenses' under the Public Official Election Act. Therefore, the cost should be handled as the party's general political activity expenses or internal accounting, and there is a possibility of legal sanctions if used for purposes other than public subsidy. If an individual incurred the expenditure, it could be subject to punishment as illegal pre-election activity.

Analysis of the Election Expense Reimbursement System

The requirements for the election expense reimbursement system are particularly important, as full or partial reimbursement is possible depending on the vote percentage. If the vote percentage is 15% or higher, full reimbursement is granted if it's between 10% and 15%, half reimbursement is given, and if it's below 10%, no reimbursement is provided. Exclusions from reimbursement include expenses for preliminary candidates, omissions or falsehoods in accounting reports, illegal campaign expenditures, and costs for unused items. Additionally, even if Kim Mun-soo meets the voting percentage requirement, expenses related to Han Deok-soo are not eligible for reimbursement.

Internal party primaries and strategic nomination expenses

Expenditures related to intra-party elections can be legally made through the support groups for the candidates, but if an individual is not officially confirmed as a candidate, those costs cannot be reimbursed by the state. In the case of strategic nominations, the expenses incurred based on the party's candidate designation should only be treated as the political activity costs of the party, and in order to include those expenditures as campaign costs after the official candidate confirmation, securing accounting transparency and reporting to the election commission is essential.

Discussion on Candidate Change Cases and Retrieval

Costs that have already been incurred cannot be recovered. The state does not compensate for prior expenditures even if the candidate is replaced, but the recovery of reimbursed costs is possible afterward. There may also be instances of recovering fraudulent claims and criminal penalties. It is clearly stipulated in the Public Official Election Act that expenses are not compensated in cases of candidate death or resignation.

Systemic loopholes and directions for improvement

It is necessary to strengthen the transparency of party accounts to address institutional loopholes and to mandate detailed disclosure of government subsidy usage. Additionally, it is important to minimize pre-expenditures in anticipation of candidate changes and to implement practical improvements such as the production of reusable promotional materials. Finally, measures should be taken to block dual compensation by the Election Commission and to strengthen post-audits.

Conclusion

Expenditures for individuals who are not officially registered as candidates are not legally recognized as election costs and cannot be subject to state compensation or recovery. Costs incurred with Han Duck-soo in mind must be borne by the People Power Party and cannot be transferred as election costs for candidate Kim Moon-soo or billed to the state. This structural framework is essential for the financial stability and equity of the public election system however, enhancing the accounting transparency and institutional management of nomination and primary costs within the party remains an important challenge.

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