Ko Wen-je, founder and presidential candidate of the Taiwan People’s Party (TPP), was jailed last week after the overturning of his release without bail on September 2. Taipei prosecutors successfully appealed against an initial court ruling granting Ko’s release on the basis of insufficient evidence against him. Ko was arrested again on September 5.
The former Taipei mayor faces charges primarily regarding allegations of corruption regarding the increase in the floor area ratio (FAR) of the Core Pacific City Mall. The expanded FAR would have allowed the Core Pacific Group, which owned the mall, to make an additional 40 billion Taiwanese dollars a year. The mall in question was closed in 2019.
Ko has remained in jail since his re-arrest last week. During his first stint in detention, Ko mostly remained in the Taipei District Prosecutors’ Office. Since September 5, however, Ko has been sent to a prison in Tucheng, where he is housed with other prisoners. Prosecutors stated that Ko’s arrest was due to the possibility that he would seek to destroy evidence if not detained, citing deleted cell phone texts.
The TPP has dug its heels in against Ko’s arrest, alleging that Ko has only been targeted as a form of political persecution by the Democratic Progressive Party (DPP)-led administration of President Lai Ching-te. The TPP criticized that Ko was questioned by prosecutors about not only the Core Pacific City Mall but also other controversies faced by the TPP, such as the fact that the party reported no campaign expenditures in the 2024 election cycle. The TPP claims that prosecutors are merely seeking to target Ko politically, and thus are linking together unrelated scandals faced by the TPP.
In response, prosecutors have stated that they view the cases as potentially linked.
The TPP has sought to mobilize in support of Ko. On September 8, according to organizers, 20,000 demonstrated for Ko’s release outside of the Taipei District Prosecutors’ Office, with a number of supporters traveling to Taipei by bus.
Even so, the TPP has acknowledged that Ko is not likely to be immediately freed. He has stated to his lawyers that he does not intend to appeal his current detention. Party caucus leader Huang Kuo-chang stated that the party views calling for Ko’s release as a “long-term” struggle, while accusing the DPP of a “new authoritarianism.” Similarly, TPP spokesperson Clark Lin alleged that the “next Xi Jinping is in Taiwan” when commenting on Ko’s arrest.
Ironically, however, China’s Taiwan Affairs Office (TAO) saw fit to weigh in on the matter earlier this week, lashing out at the DPP-led “Green Terror.” In doing so, the TAO in Beijing has embraced the “Green Terror” framing used by the Kuomintang (KMT), the DPP’s main rival.
In past years, the KMT has used the phrase “Green Terror” to accuse the DPP of politically persecuting opponents through initiatives targeting KMT party assets retained from property seizures during the authoritarian period, enacting transitional justice, or corruption convictions of KMT politicians. Some have interpreted the TAO’s statement as a political signal, calling on the pan-Blue camp to step up support of Ko.
Indeed, the KMT has aligned with the TPP on other issues in recent memory. The two parties contemplated a joint ticket in the 2024 presidential elections, although the effort fell apart. The KMT and TPP also jointly pushed for controversial new legislative powers, which provoked a series of protests earlier this year that came to be known as the “Bluebird Movement.” But the KMT still seems to be divided on the question of whether to back the TPP or not.
Hsiao Hsu-tsen, the spokesperson for the administration of Ma Ying-jeou, the last KMT president, was the surprise guest at the TPP’s September 8 rally. The TPP has expressed gratitude over the support of KMT politicians such as Hsu Chiao-hsin, Alex Tsai, Wang Hong-wei, Hsieh Long-chieh, and Lo Chih-chiang.
At the same time, other KMT politicians have been highly critical of Ko. The most notable of these is Taipei city councilor Chung Hsiao-ping, who has accused Ko on a number of occasions of corruption. In public comments, former KMT legislator Apollo Chen suggested that the reason why the KMT is divided about whether to support Ko or not is because of wariness about the possibility of further charges against Ko emerging.
Ko is accused of lying about the number of times he met with Core Pacific Group chair Sheen Ching-jing. Furthermore, DPP politicians have also suggested that paperwork regarding the Core Pacific Mall may have been doctored.
Likewise, Ko’s wife, Peggy Chen, is accused of depositing large sums of money in an ATM in a similar timeframe to meetings between Ko, TPP legislator Huang Shan-shan, and KMT city councilor Angela Ying, who is accused of acting as a intermediary between Ko and Sheen. Much speculation has focused on a USB owned by Ko that contains mention of an NT$15 million transaction, as well as the hypothesis that the Core Pacific Group’s NT$430 million budget for publicity may have been intended as a means of funneling money for bribes.
Even if public attention has primarily focused on the Core Pacific City Mall and the TPP’s troubled campaign finances, Ko faces a number of other allegations. He is accused of possible corruption in allowing the Shin Kong Group to purchase two lots of the Shilin Beitou Technology Park despite the Shin Kong Group having no investment plan. Ko’s vice presidential candidate in the 2024 election cycle, Cynthia Wu, hails from the family that owns the Shin Kong Group.
In another example, a foundation founded by Ko and registered to the same address as his personal offices is accused of laundering NT$27 million. The First Fruit and Vegetable Market in Wanhua, Taipei, has been cited as another possible instance of corruption, seeing as its construction involved firms linked to the Core Pacific Group.
Peggy Chen has been accused of taking out a fraudulent loan in the name of her and Ko’s son to open a coffee shop located in the same building as the TPP’s headquarters, which would have been aimed at Ko supporters, while the TPP has further faced scrutiny over spending NT$900,000 on vehicle rentals during trips in the United States.
The corruption allegations facing Ko could potentially cost him his political career. He had been continuing to angle for another presidential run after his failed 2024 bid for office. As the TPP is largely built around Ko, it is unclear if the party would survive if he continues to be jailed. Even if Ko is eventually cleared of corruption, extensive media reporting about his family’s financial largess – including his son being derided for eating expensive steak during his father’s imprisonment – may contribute to the view of Ko as exorbitantly wealthy and out of touch with the concerns of ordinary people.
The TPP has wavered on the question of whether it intends to appoint another acting chair or not. If it does, Huang Kuo-chang seems to be the frontrunner for the position, with many major public statements of the party coming from Huang after Ko’s arrest. Other party heavyweights have largely been displaced as a result of recent scandals.
Huang Shan-shan was removed from her position as deputy caucus whip and from the TPP’s standing committee as well as suspended of party membership over her involvement in the campaign finance scandal. However, she continues to enjoy a close relationship with Ko and serves as a legislator.
Ann Kao was removed from office in Hsinchu and jailed on corruption charges in July, quitting the TPP in the same timeframe as her sentencing. Consequently, there appear to be few prominent politicians left in the TPP to take up a position of leadership.