The KMT won 3 seat, but they lost the vote total by a considerable margin, and they were tied with the DPP in terms of local council seats. (mainly because in the wo seats the DPP won they won by a total landslide)
Another sort of big news in this election was that Chen Shui Bien's son won a local council seat in Kaoshung, in fact he was the highet single vote getter candidate in the whole election (for the council race that is). despite the fact that a scandal involving him was thrown around quite a bit during the race (he reported went out with a hooker and denied... except that he lost all his law suits against those that made such claims)
This election is difficult to read to be honest, I'm sort of baffled by why the difference in the south was so large, in the 3 cities where KMT won, the story isn't too difficult, the overall summery is that the DPP were running a uphill battle but kepted the field on a local level and not on national level issues, and thus were successful to some degree, but still couldn't overcome the home turf advantage as awhole.
The problem is that the same thing was true in the South, in this election the biggest point is that neither side really escalted this election onto the national policy stage much, which is strange especially for the KMT, seeing that they should have some advantage now that the economy is recovering well and they could generally play a lot of the DPP's old rheteoric against them in this regard. Kaoshung was a especial disastor for them since the DPP breakaway candidate Yang ended up attracting almost no DPP vote but almost all the KMT votes. where the DPP incumbent fell into a pretty big scandal but still won more votes than last time around... despite a DPP internal split.
My take is still that the DPP played a much better election game than the KMT overall, though they probably screwed up Taipei city a bit by over focusing on the Flora expo too early in the process. And their candidate in the Taipei county (their chairmen Tsai Yin Wen) was simply too weak in election terms due to her complete lack in election experience or local ties and her general distance from the DPP's base ( She's not only a Hakka , but also raised in the heart of Taipei and speaks even worse Taiwanese than Ma Yin Jio, essentially if you take her out of context you'd never suspected that she was DPP supporter, let alone it's chairwomen) cost them a bit there. That and the KMT candidate probably played the best over there as a whole as he swepted the base long before Tsai and made some rather brilliant (if somewhat cheap ) moves with the help of the central government which helped things out a bit... (the DPP focused on attacking the high housing prices and blasted on why the government don't setup a social housing program..... so the KMT immediately flipped the cards and announce that they'll start a social housing program... leaving the DPPs stomping their feet that the KMT actually took their ideas and went along with it)