In Stephen Chow's classic comedy filmHail the Judge, one of the most memorable gags involves a character trying to use a "Ming Dynasty sword to execute Qing Dynasty officials"—a satirical jab at the futility of applying outdated laws to current problems.
Today, critics argue that the Democratic Progressive Party's (DPP) transitional justice campaign presents an equally absurd, inverted spectacle. The legislative weapon isn't outdated, but the targets are often no longer the original perpetrators, and the deals in question were settled decades ago.
This legal and political paradox was recently thrust into the spotlight by a landmark judicial ruling. Taiwan's Supreme Administrative Court declared that the government's Ill-Gotten Party Assets Settlement Committee failed to prove the Kuomintang (KMT) acquired its former headquarters building through a "gratuitous transfer" or for "obviously inadequate consideration." The court overturned the committee's order for the KMT to return approximately NT$1.14 billion, effectively ending an eight-year legal battle.
While DPP caucus secretary-general Chuang Jui-hsiung dismissed the decision as an isolated ruling that "cannot whitewash authoritarian history," the case exposes the deep controversies surrounding the party assets committee. Numerous disputes are still grinding through the courts, including heated debates over whether organizations like the China Youth Corps and the Women's League legally qualify as "affiliated organizations with ill-gotten assets."
Overlooking the 'Quiet Revolution'
The foundational critique of the DPP's current approach to transitional justice is that it treats all predecessors on Taiwan's democratic journey as expendable. While the ruling party often frames itself as the sole defender of Taiwanese democracy, historical records show that transitional justice mechanisms began operating the moment martial law ended, and political parties were legalized.
The driving force behind these early reforms was former President Lee Teng-hui (李登輝). Under his administration, the February 28 Incident Compensation Act marked a major milestone in addressing historical grievances. Furthermore, party assets and affiliated organizations were systematically reorganized. Groups such as the China Youth Corps, the Women's League, and the Free China Relief Association were re-registered as social organizations, political groups, or civic associations under the laws of the time.
Lee's democratic transition earned global acclaim as a "quiet revolution." By avoiding extreme purges, Taiwan achieved one of the smoothest peaceful power transitions among third-wave democracies.
Even after the KMT lost power and Ma Ying-jeou (馬英九) became party chairman, the KMT began addressing the assets Lee had left unresolved, responding to DPP demands that political parties withdraw from the media and corporate sectors. The resulting attempts to sell the China Television Company (CTV), China Film Studio, and the Broadcasting Corporation of China (BCC) embroiled the party in 20 years of litigation.
Today, critics view the DPP's retroactive application of the 2016 Ill-Gotten Party Assets Settlement Act as a deliberate disregard for fundamental legal principles.
It raises a puzzling question: How could former President Tsai Ing-wen (蔡英文) —a legal scholar whose political career was elevated by Lee Teng-hui—so thoroughly dismiss the legitimacy of Lee's earlier reform efforts?
The Retroactive Trap: From Headquarters to Luxury Developments
The former KMT central headquarters case perfectly illustrates the complexities of applying new laws to old transactions.
The site originally housed the Taiwan branch of the Japanese Red Cross during colonial rule. After 1945, it became a guesthouse under the Taiwan Provincial Administrative Office, and was transferred to KMT use after the government relocated to Taiwan in 1949.
In 1990, shortly after Lee consolidated power, the KMT legally purchased the land at its announced public value plus 20%, with the buildings assessed by tax authorities, for a total of over NT$377 million. Sixteen years later, in 2006, the KMT sold the property to the Chang Yung-fa Foundation.
Yet the DPP's party assets committee used a 2016 law to target a building no longer owned by the KMT. They demanded NT$1.397 billion, effectively declaring a 36-year-old purchase and a 16-year-old sale "illegal," despite failing to provide evidence that the original NT$377 million acquisition was inadequate.
A Threat to the Rule of Law?
If the legal logic of the party assets committee prevails, critics argue that the anxiety extends far beyond the KMT to the broader public and corporate sectors.
A government willing to apply new laws to old transactions creates a chilling effect on commerce and civic life. Opponents draw parallels to how cross-strait exchanges and the naturalization of mainland Chinese spouses operated without issue for 40 years, only to become heavily scrutinized under the DPP's unilateral regulatory interpretations.
There is a profound historical irony at play. During his tenure, Lee Teng-hui devoted considerable political capital to supporting the opposition DPP, helping to institutionalize a multi-party democracy. In contrast, critics argue that the DPP, upon consolidating power, has utilized the "contemporary sword" of transitional justice to dismantle its political rivals, regardless of the collateral damage to Taiwan's democratic rule of law. （Related： Opinion | The Bank That Broke an Empire: How a 1927 Financial Panic Fueled Japan’s Path to War ｜ Latest ）
