Opposition Democratic Progressive Party (DPP) won in the 1997 election, controlling majority of mayors/magistrates across the country and winning more popular votes than the ruling Kuomintang (KMT) for the first time.

[1] While the two polls were seen as confidence votes of President Lee Teng-hui, they marked the beginning of the historic peaceful transition of power which would occur in 2000.

Chen Shui-bian of the DPP seek a second four-year term with a high popularity of 80%, while the KMT nominated Ma Ying-jeou, ex-Minister of Justice who earlier declined to run in the mayoral election.

Analysts believed tactical voting by supporters of New Party contributed to the KMT's win,[3] in addition to the discontent with Chen's aggressive policies.

During the campaign, Wu attacked Hsieh for "inhumane" after he agreed to be defence attorney for the murderer of Pai Hsiao-yen, hoping to persuade his surrender.