Prosecutors Review Investigation into Kwak Sang-do's Son's 5 Billion KRW Retirement Pay from Hwacheon Daeyu

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution is expected to launch an investigation into the son of former People Power Party lawmaker Kwak Sang-do, who worked at Hwacheon Daeyu Asset Management (Hwacheon Daeyu), embroiled in allegations of preferential treatment in the Daejang-dong development project in Seongnam, Gyeonggi Province, and received a controversial severance pay of 5 billion KRW.

The Seoul Central District Prosecutors' Office is known to soon assign a department and begin investigating the case in which Lee Jae-myung's campaign filed a complaint on the 27th against lawmaker Kwak for violating the Public Official Election Act by spreading false information, and the case in which the People’s Revolution Party, led by Pastor Jeon Kwang-hoon of Sarang Jeil Church, reported Kwak to the prosecution on bribery charges under the Act on the Aggravated Punishment of Specific Crimes.

Since investigations related to the case are already underway, it is highly likely that the case will be assigned to the department currently conducting the investigation.

Currently, regarding the Daejang-dong allegations, the Public Investigation Division 2 is handling the case where Lee Jae-myung's campaign filed a complaint against People Power Party floor leader Kim Ki-hyun and others for violating the Public Official Election Act, while the Economic Crime Criminal Division is handling the case where former Supreme Court Justice Kwon Soon-il was reported on charges including post-facto bribery.

According to political circles and Hwacheon Daeyu, Kwak’s son, Kwak Byung-chae (32), joined Hwacheon Daeyu in June 2015 and worked in the compensation team before resigning last March.

He received a monthly salary ranging from approximately 2.3 million KRW to 3.8 million KRW before tax after joining, and upon resignation, he received 5 billion KRW in the form of performance bonuses, consolation money, and severance pay. The actual amount received after taxes is reported to be 2.8 billion KRW.

Both Kwak’s son and Hwacheon Daeyu maintain that the 5 billion KRW payment was legitimate, but the amount far exceeds typical levels, keeping the controversy alive. Allegations of bribery have also been raised, mainly from the ruling party.

In a statement released the day before, Kwak explained, "Since 2018, my health has deteriorated to the point where normal work performance became difficult," and added, "I understand the company recognized that excessive workload was the cause and thus determined the performance bonus and consolation money."

Hwacheon Daeyu also explained that the payment included a performance bonus for the success of the development project and severance consolation money for illnesses caused by Byung-chae’s heavy workload.

Following the prosecution, the Corruption Investigation Office for High-ranking Officials (CIO) may also initiate an investigation. Under the CIO Act, members of the National Assembly are included as high-ranking officials.

The civic group Judicial Justice Citizens’ Action plans to file a complaint with the CIO on the 28th, accusing lawmaker Kwak and his son of bribery under the Act on the Aggravated Punishment of Specific Crimes. The CIO is expected to review the complaint and decide whether to proceed with an investigation.

This content was produced with the assistance of AI translation services.