Prospect of Selling Party HQ, Taking Out Loans as Return of 39.7 Billion Won Election Subsidy Looms

Former President Yoon Suk Yeol was sentenced to a prison term with a suspended sentence in the first trial on charges of violating the Public Official Election Act. If the verdict is upheld or a fine of over 1 million won is finalized in the second trial, the People Power Party must return 39.7 billion won in subsidies received for the 20th presidential election.

Under the Special Counsel Act, a Supreme Court ruling could come within six months of the first trial sentencing, meaning the scenario where the party must secure massive funds in less than half a year is becoming a reality.

Currently, the People Power Party’s liquid assets stand at approximately 19 billion won as of June, which is woefully insufficient compared to the 39.7 billion win owed. Since these liquid assets, needed for fixed costs such as personnel expenses, cannot be easily diverted, analysts suggest that selling the party headquarters—estimated to be worth around 60 billion won—or establishing a mortgage on its real estate is inevitable to secure the necessary funds.