TAIPEI (Taiwan News) — The Taipei High Administrative court upheld a decision to freeze the assets of the China Youth Corps (CYC) on Thursday (Aug. 1).

The court ruled against the CYC’s challenge to a decision made by the Cabinet’s Ill-gotten Party Assets Settlement Committee in 2019, which froze NT$5.6 billion (about US$170 million) of its assets. The court upheld the committee’s argument that the assets were gained when it was an affiliate organization of the Kuomintang (KMT), per UDN. 

The judgment found that even though the CYC was formally affiliated with the Ministry of National Defense when it was established, in reality it was an organization used by the KMT for self promotion among youths. Its finances, personnel, and operations were largely controlled by the KMT, it found.

The court noted that KMT annual reports described the CYC’s work, and that the group was instructed by the party on ideological issues. It said the CYC was part of Taiwans’ former KMT led party-state system.

The court said the CYC was allocated land and assets by the KMT ruled government at discounted prices or for free. It said this included substantial government funding for the CYC’s former Taipei headquarters.

The court acknowledged the CYC became independent from the defense ministry before it became a public welfare association in 1989, and was separated from substantive KMT control 10 years later. However, it said the CYC’s assets were obtained before that time, and upheld the committee's original judgment.

The ruling is subject to appeal. Any ill-gotten assets that are confiscated from political parties or affiliated organizations are transferred to the state if the original owner cannot be identified.

Under the law “ill-gotten assets” are defined as those acquired by political parties or affiliated organizations for their use via conduct which is “against the nature of political parties, the principles of democracy and the rule of law.”

The CYS was established as the China Youth Anti-Communist National Salvation Corps, but this name was later changed. According to its website, the CYS now focuses on social welfare work for youth.