He was the Legislative Yuan's first Taiwan-born speaker and presided over a legislature entirely elected by residents of the Taiwan Area (after the retirement of the elderly mainland representatives in December 1991).

[8][9] After Soong's loss, Liu was named the leader of the New Taiwanese Service Team, an exploratory committee that preceded the formation of the People First Party.

[10] After the end of Liu's speakership, he continued to lead Taiwan in negotiations with China and advocated for the nation to obtain membership in the World Health Organization.

[14][15] The Taichung District Court convicted Liu for his role in the Kuangsan Group scandal in July 2003, sentencing him to five years imprisonment and NT$30 million fine.

[19] Though Liu had relinquished his PFP membership a day after his resignation from the Legislative Yuan,[20] the party offered to help him find medical treatment if he would serve his sentence in Taiwan.