The Cost of Running for President: An Overview
Running for the presidency is not only a political endeavor but also a significant financial undertaking. While one might assume that becoming a president without spending a penny is possible, the reality of election campaigns suggests otherwise. Candidates who fail to secure a substantial voter base may incur costs running into billions of Korean won. Let’s delve into the financial requirements for a presidential campaign.
Registration Deposit for Presidential Candidates
According to South Korea’s Public Official Election Act, presidential candidates must deposit 300 million Korean won (approximately $250,000) with the National Election Commission. This deposit serves as a measure to ensure the candidate’s sincerity and responsibility, while also discouraging frivolous candidacies. Although candidates can recover some or all of the deposit if they achieve a certain percentage of votes, the upfront cash requirement remains a burden.
Financial Obligations for Independent Candidates
Independent candidates face unique challenges as they must fund the 300 million won deposit entirely from personal resources. Without party support, they often resort to selling assets, soliciting donations, or taking out loans, making the financial burden particularly heavy. The deposit is refunded based on election performance: full refund for over 15% of votes, 50% for 10%-15%, and forfeiture for less than 10%.
Campaign Expenditures: A Closer Look
Beyond the deposit, the actual campaign expenses are staggering. Major candidates typically spend between 40 to 50 billion won (around $33 million to $41 million), while those running for participation may spend under 10 billion won. Funding sources vary, including personal finances, party funds, and donations. Ultimately, these expenses cover a wide array of campaign activities.
Who Funds the Campaigns?
Candidates usually pre-fund campaign costs, which include printing election posters, producing promotional videos, and operating campaign offices. While political parties can support their candidates financially, the spending must be documented under the candidate’s name. Independent candidates must rely entirely on personal funds or donations, often limiting their campaign scope.
State Reimbursement: Conditional Financial Relief
The state offers reimbursement for campaign expenditures depending on the candidate’s vote percentage. Under the Public Official Election Act, candidates who secure over 15% of the vote receive full reimbursement of campaign costs and the deposit. Those obtaining 10-15% receive half, while those with less than 10% receive no reimbursement, making it a high-stakes financial gamble.
Case Study: 2022 Presidential Election Expenditures
To illustrate, let’s examine the 2022 South Korean presidential election. Yoon Suk-yeol of the People Power Party spent approximately 42.5 billion won and was reimbursed around 41.4 billion won, reflecting his substantial vote share. Lee Jae-myung of the Democratic Party spent about 48.7 billion won, receiving 47.6 billion won back. In contrast, Sim Sang-jung of the Justice Party spent 6.3 billion won but only recovered 50% due to a smaller vote share. Huh Kyung-young of the National Revolution Party spent 4.2 billion won but received no reimbursement due to a vote share below 10%.
The Financial Burden of Presidential Campaigns
These figures underscore the immense financial risks involved in running for president. A marginal difference in voter support can determine whether a candidate recoups tens of billions or loses everything. This financial structure poses significant challenges, especially for candidates from new or minor parties, who must balance public exposure and organizational capacity with financial constraints.
Conclusion: The High Stakes of Presidential Bids
Running for president in South Korea demands not only political acumen but also substantial financial resources. As seen in the 2022 election, the ability to cover campaign costs and secure a refund hinges on achieving a competitive vote share. For new entrants or independent candidates, the financial risks may deter participation or limit campaign efficacy. Ultimately, understanding these financial dynamics is crucial for anyone contemplating a presidential bid.