KMT Questions Subsidies Favoring "Green-Friendly" Firms; MOEA Insists on Transparency and No Differential Treatment

The Kuomintang (KMT) has questioned whether the chairman and other executives of drone manufacturer Carbon-Based Technology Corp. have close ties to the green camp (DPP), alleging that relevant government budgets are being secured by "green-friendly" firms. In response, the Ministry of Economic Affairs (MOEA) issued a statement today clarifying that government policies are implemented based on principles of openness and transparency, with all information made public through media and online channels. Any subsidy application is openly welcomed from any Taiwanese company, regardless of political affiliation. As long as it aligns with policy directions, "any 'friendly' firm can apply, and there is no differential treatment."

KMT legislators Lo Ting-wei, Hsu Chiao-hsin, and others held a press conference today questioning the green-camp backgrounds of Carbon-Based Technology's Chairman Chen Wen-hung, CEO Yu Pei-wen, and independent director Hung Yao-nan. They noted that Chen and Hung both joined the company in the same year that President Lai Ching-te announced the "five major trusted industries."

Lo Ting-wei stated that it's not that budgets for drones haven't been allocated, but that more of the budget is being wasted on these "green-friendly" firms. He claimed that specific "green-friendly" companies, while securing bids from the National Chung-Shan Institute of Science and Technology (NCSIST), also receive government subsidies. He expressed hope that in addition to a "non-red supply chain," the future would also see a "non-green supply chain."

Premier Cho Jung-tai recently emphasized that the drone industry has absolutely no connection to "green-friendly" firms.

The MOEA clarified in its statement today that Carbon-Based Technology Corp. has only received a total of NT$30.9 million in subsidies from the MOEA on two occasions, in 2009 and 2016. Both instances were long before the time legislator's mentioned, when Chen Wen-hung would become chairman in 2025, indicating a significant error in the data they cited.

The MOEA stated that government policies are implemented based on open and transparent principles, with all information disclosed in the media and online, and guiding industrial development through policy is a matter of course. Any subsidy application is openly welcomed from any Taiwanese company, regardless of political affiliation. As long as it aligns with policy goals, "any 'friendly' firm can apply, and there is no differential treatment."

The MOEA stressed that after a company submits an application, the ministry treats all applicants equally. It involves external review committees to ensure applicants meet the criteria for each subsidy and decides whether to grant the subsidy based on the application documents. The ministry warned that using pieced-together information for political questioning could harm industrial development and negatively impact over 200 businesses across Taiwan.

Furthermore, regarding the concerns raised by the campaign headquarters of KMT county magistrate candidate Wu Tsung-hsien about potential PFAS (per- and polyfluoroalkyl substances) pollution from the drone industry moving into the Yilan Science Park, the MOEA also provided an explanation. It stated that the drone industry's manufacturing processes are principally focused on design and R&D, AI software control, chassis assembly, and system testing. The main materials used include carbon fiber, motors, batteries, and electronic circuit boards, with most processes not involving large-scale component manufacturing.

The MOEA pointed out that any drone parts that might involve high-risk synthesis or large-scale discharge of high-concentration PFAS must be approved by the competent authority under the "Toxic and Concerned Chemical Substances Control Act." These activities also require regular reporting of their flow and must be conducted in specific controlled areas, which do not include the Yilan Science Park.

The MOEA said that in addition to existing regulations under the Control Act, the Executive Yuan has already approved the "PFAS Management Action Plan." This plan involves the joint promotion of 14 government agencies, including the MOEA, the Ministry of Environment, and the Ministry of Health and Welfare. Through inter-ministerial cooperation, they will strengthen PFAS management and environmental monitoring to ensure public health and environmental safety.