Prosecutors Launch Investigation into Daejangdong's Final Puzzle, the '50 Billion Club'

Lobbying Allegations Target Political and Legal Figures... Gwak Sang-do and Park Young-soo Expected to Be Investigated

[Asia Economy Reporter Baek Kyunghwan] The prosecution investigating the preferential treatment and lobbying allegations related to Daejang-dong in Seongnam City is launching an investigation into the so-called '50 Billion Club.' With the investigation and detention of key figures at the center of the preferential treatment allegations underway, the lobbying suspicions centered on the '50 Billion Club' represent the final piece of the Daejang-dong scandal. The prosecution is targeting political and legal figures.

According to the legal community on the 12th, the Seoul Central District Prosecutors' Office's special investigation team for the Daejang-dong development allegations (led by Deputy Chief Prosecutor Kim Tae-hoon) plans to summon former lawmaker Kwak Sang-do soon to verify suspicions that his son received 5 billion KRW. A team official stated, "No schedule or direction has been set for the investigation of former lawmaker Kwak," but added, "The basic policy is to thoroughly investigate the raised allegations."

Kwak's son, Byeong-chae, was already questioned twice last month as an accomplice in Kwak's bribery charges. Byeong-chae joined Hwacheon Daeyu in June 2015 and resigned around March to April this year, receiving 5 billion KRW as severance pay and bonuses.

The investigation team believes that after Kwak helped Hwacheon Daeyu, he demanded 5 billion KRW from major shareholder Kim Man-bae following profits from the Daejang-dong development project and received the money through his son. Currently, the team suspects this 5 billion KRW was a payoff for forming the consortium. The core of the allegation is that Kwak intervened to prevent Hana Bank from withdrawing from the consortium during the early stages of the Daejang-dong project.

However, former lawmaker Kwak strongly denies the charges, stating, "I never exercised any influence over the Daejang-dong development, and the 5 billion KRW was legitimately earned by my son as labor compensation."

Former special prosecutor Park Young-soo and former Supreme Court Justice Kwon Soon-il, who were revealed to have served as advisors to Hwacheon Daeyu, are also expected to be questioned soon. With only ten days left on the detention period for Kim and lawyer Nam Wook, the actual owner of Cheonhwa Dongin No. 4, the investigation team’s strategy is to first confirm lobbying circumstances involving them.

In Park’s case, allegations have surfaced regarding his daughter's apartment allocation in Daejang-dong, a 10 billion KRW transaction between Lee, the head of a sales agency related to Park, and Kim. Recently, suspicions have also been raised that lawyer Jeong Min-yong, former head of strategic projects at Seongnam Urban Development Corporation who led the drafting of the consortium guidelines, and accountant Jeong Young-hak discussed these matters at the law firm office where Park was a representative.

Former Supreme Court Justice Kwon, after retiring in September last year, served as an advisor to Hwacheon Daeyu and reportedly received a monthly salary of 15 million KRW. Kwon is also suspected of connections because he was the presiding justice in the election law violation case in which Lee Jae-myung, the Democratic Party presidential candidate, was acquitted while serving as governor of Gyeonggi Province.

There are variables. Kim, the key suspect in this case, has refused to appear for questioning by the investigation team for two consecutive days citing health reasons. Considering the expiration of the detention period, the team is reviewing the possibility of visiting Kim at Seoul Detention Center, where he is held, but the likelihood of Kim cooperating for a lengthy investigation is low. The investigation team is also still affected by COVID-19 infections. Deputy Chief Prosecutor Yoo Kyung-pil, the lead prosecutor, has been absent until the previous day, and other team members are on leave. Due to this, there are reports within the team discussing personnel changes and reinforcements.

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