Political Warfare Erupts: Kwon Young-se Files Defamation Lawsuit Against Fellow Party Member Over 16 Billion Won Election Fund Scandal

The Explosive Allegation That Shook Korea's Conservative Party

South Korean politics witnessed another dramatic confrontation on July 15, 2025, when former People Power Party (PPP) emergency committee chairman Kwon Young-se announced his intention to file defamation charges against fellow party member Kim Jong-hyuk. The dispute centers around explosive allegations that the party wasted approximately 16 billion won (roughly $12 million USD) on failed presidential campaign preparations for Han Duck-soo, former Prime Minister.

The controversy began when Kim Jong-hyuk, a former supreme council member classified as part of the "pro-Han Dong-hoon" faction, publicly questioned whether the party leadership had indeed spent over 10 billion won supporting Han Duck-soo's presidential candidacy. In a Facebook post, Kim wrote: "Rumors are rampant in Yeouido about the People Power Party's 'wasted money.' They say the party leadership pre-ordered campaign uniforms with Han Duck-soo's name and even contracted campaign vehicles, only to waste 16 billion won when Han failed to become the candidate".

This allegation strikes at the heart of party governance and financial accountability, raising questions about how conservative leadership managed campaign funds during a critical period in Korean politics. The timing is particularly sensitive as it relates to the May 2025 presidential candidate replacement controversy that shook the party's foundations.

Kwon Young-se's Fierce Counterattack: 'Malicious Defamation'

Kwon Young-se, who served as emergency committee chairman during the controversial period, responded with unprecedented fury. In his Facebook statement, he expressed deep disappointment: "Kim Jong-hyuk is a junior politician I have known for a long time. He was an executive at a prestigious media company and served as a supreme council member after joining our party - a very capable politician. Yet seeing him make such groundless slander against me makes me feel anew how heartless politics can be".

The former chairman categorically denied the allegations, stating: "The malicious rumors that I or the party leadership at the time provided over 10 billion won to candidate Han have already been clearly refuted by Party Affairs Audit Committee Chairman Yoo Il-jun". He emphasized that modern political parties, regardless of their political affiliation, cannot arbitrarily spend party funds in such a manner.

Kwon's response reveals the deep personal betrayal he feels, particularly given his previous relationship with Kim Jong-hyuk. His decision to pursue legal action against a fellow party member demonstrates the severity of the situation and the potential damage these allegations could inflict on his reputation and political career. The threat of defamation charges also signals that this conflict may extend beyond internal party politics into the judicial system.

The Han Duck-soo Connection: Understanding the Presidential Campaign Chaos

To understand the gravity of these allegations, one must examine the chaotic events surrounding Han Duck-soo's brief presidential candidacy. Han Duck-soo, a seasoned technocrat who previously served as Prime Minister, was reportedly considered as a potential presidential candidate during a period of intense political maneuvering within the People Power Party.

According to Kim Jong-hyuk's allegations, the party leadership allegedly pre-ordered campaign materials including uniforms with Han's name and contracted campaign vehicles, anticipating his nomination. When Han ultimately failed to secure the nomination, these materials allegedly became worthless, resulting in the purported 16 billion won loss. Kim further suggested that these unused campaign uniforms were "gathering dust in warehouses, unable to be discarded".

The allegations also include claims about simultaneous photo shoots, with Kim questioning: "Is this why Kim Moon-soo and Han Duck-soo were reportedly photographed at the same studio at the same time when Kim was doing promotional shoots?" These details paint a picture of a party leadership that may have prematurely committed resources to a candidate who never officially secured the nomination, raising serious questions about financial governance and decision-making processes within Korea's main conservative party.

Factional Warfare: Pro-Yoon vs Pro-Han Dong-hoon Divisions Exposed

This controversy has exposed the deep factional divisions within the People Power Party, particularly between supporters of President Yoon Suk-yeol and those loyal to former party leader Han Dong-hoon. Kim Jong-hyuk is widely recognized as part of the "pro-Han Dong-hoon" faction, while Kwon Young-se is associated with the "pro-Yoon" camp.

The timing of these allegations is particularly significant, as they come amid ongoing tensions between these factions over party direction and leadership. Kim Jong-hyuk's pointed question to Kwon Young-se - "Is it true that the party spent over 10 billion won on someone who wasn't even a candidate?" - can be interpreted as an attack on the pro-Yoon leadership's competence and financial stewardship.

Kwon Young-se's response included a warning that such actions don't benefit Han Dong-hoon either: "This doesn't look good for Han Dong-hoon, whom Kim Jong-hyuk supports so much. I hope such incidents never happen again". This statement suggests that the conflict extends beyond personal grievances to broader strategic considerations about factional politics and party unity. The public nature of this dispute indicates that internal party conflicts have reached a point where party members are willing to air grievances publicly rather than resolve them through internal mechanisms.

Financial Accountability and Party Governance Under Scrutiny

The 16 billion won allegation raises fundamental questions about financial accountability and governance within South Korea's political parties. According to existing reports, Party Affairs Audit Committee Chairman Yoo Il-jun had previously stated that "there was no party budget allocated with Han Duck-soo as a presidential candidate in mind" and that "the story about campaign uniforms being pre-produced with Han's name is not factual".

However, Kim Jong-hyuk's persistent questioning suggests that transparency issues remain unresolved. His Facebook post demanded: "Where did all that campaign money go? Who spent how much and where? Party members are truly curious". This demand for transparency reflects broader concerns about how political parties manage public funds and private donations during election periods.

The controversy also highlights the complex financial dynamics of Korean political campaigns. Campaign finance regulations require strict reporting and accountability measures, making allegations of wasteful spending particularly damaging. If proven true, such financial mismanagement could result in legal consequences and severely damage public trust in the party's ability to govern responsibly. The fact that these allegations involve specific amounts (16 billion won) and detailed scenarios (pre-ordered uniforms, contracted vehicles) suggests either concrete evidence or carefully constructed accusations designed to maximum political damage.

Community Response and Public Reaction to the Scandal

The Korean political community has reacted with a mixture of shock, skepticism, and partisan interpretation of the allegations. Online communities and political forums have been buzzing with discussions about the credibility of the claims and their potential impact on the People Power Party's reputation.

Conservative supporters have generally rallied behind Kwon Young-se, viewing Kim Jong-hyuk's allegations as factionally motivated attacks designed to undermine the pro-Yoon leadership. They point to the previous audit committee findings as evidence that the claims are baseless and politically motivated. Many express concern that such public disputes damage the party's image and electoral prospects.

However, supporters of the pro-Han Dong-hoon faction argue that Kim Jong-hyuk's questions are legitimate concerns about party governance and financial accountability. They contend that if such large sums were indeed spent inappropriately, party members deserve full transparency and accountability from leadership. The debate has extended beyond party politics to broader questions about democratic governance and the responsibilities of political parties to their members and the public.

Legal Implications and Future Political Consequences

Kwon Young-se's threat to file defamation charges represents a significant escalation in what began as internal party criticism. Under South Korean law, defamation charges can result in criminal penalties, making this a serious legal matter rather than merely political theater. The decision to pursue legal action suggests that Kwon believes the allegations have crossed the line from legitimate political criticism to potentially damaging false statements.

The legal proceedings, if they materialize, could have far-reaching consequences for both individuals and the party as a whole. Court testimony and evidence presentation could potentially reveal internal party documents and decision-making processes that have previously remained private. This transparency, while potentially damaging in the short term, might ultimately serve the public interest by providing greater insight into how political parties operate.

For the People Power Party, this controversy represents another challenge to party unity and public credibility. As South Korea's main conservative party, the PPP needs to maintain public trust to remain competitive in future elections. Continued factional disputes and allegations of financial mismanagement could undermine this trust and provide ammunition for opposition parties. The resolution of this conflict - whether through legal proceedings, internal party mediation, or continued public dispute - will likely influence the party's political prospects and internal dynamics for months to come.