MDP ponders how its money will be split

The governing Millennium Democratic Party is headed for a divorce between its two main factions ― the new leadership or legislators affiliated with President Roh Moo-hyun, and the old leadership affiliated with founder and former President Kim Dae-jung. The question is how will the factions split the party’s money?
The new leadership, which wants to eliminate the party and create a new ruling party in its place, has formed a preparatory committee to form a new party. Thus, the old leadership will inherit the party assets.
But sources knowledgeable about party finances said that there is not much money in the party. It has been struggling to pay monthly wages and distribute central subsidies to regional chapter offices. Several months of rent and maintenance fees are due.
The party’s only asset is a training center in Cheongwon, North Chungcheong province, which it bought for 8 billion won ($7 million), and which was financed by 3 billion won worth of loans. The center is currently for sale for 7 billion won, but it has been hard to find a buyer.
By law, more of the government’s future financial assistance to political parties for their legislative election campaigns, which is paid out by the National Election Commission, will go to those who choose to remain with the Millennium Democratic Party.
Under current laws, the election watchdog distributes assistance to the parties according to the number of votes garnered in the previous legislative election, which was in April 2000.
The commission’s assistance for the April 2004 legislative election is estimated at 10 billion won for the opposition Grand National Party, 7.6 billion won for the Millennium Democratic Party and around 5.6 billion won for the new ruling party to be formed by the new leadership faction. Political observers said that the money issue is what has caused the internal turmoil in the governing party to continue to drag on.

by Shin Yong-ho