Prosecutors Conduct Search of Former Lawmaker Kwak Sang-do's Home and Office Over Son's 5 Billion Won Retirement Pay

Former National Assembly Member Gwak Sang-do. [Image source=Yonhap News]

[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] The prosecution investigating the Daejang-dong development lobbying and special favor allegations conducted a search and seizure at the residence and office of former People Power Party lawmaker Kwak Sang-do on the 17th.

The dedicated investigation team of the Seoul Central District Prosecutors' Office (Team Leader Kim Tae-hoon, 4th Deputy Prosecutor) carried out the search and seizure of former lawmaker Kwak's residence and the office he used on the morning of the same day.

The prosecution has been investigating on the premise that the 5 billion KRW retirement payment received by Kwak's son, Byung-chae, upon leaving Hwacheon Daeyu is likely a reward for Kwak's assistance to Hwacheon Daeyu.

Kwak is suspected of exerting influence on Kim Jung-tae, chairman of Hana Financial Group, during the Daejang-dong development project to prevent the collapse of the Hana Bank consortium, which Hwacheon Daeyu participated in. It is known that the prosecution secured related testimonies while investigating Hwacheon Daeyu major shareholder Kim Man-bae, lawyer Nam Uk, and Hana Bank officials. Kwak and Chairman Kim's side deny these allegations.

Earlier, the prosecution summoned Byung-chae twice last month for questioning. They also filed a petition for seizure preservation with the court to prevent Byung-chae from disposing of the 5 billion KRW, freezing 10 of his bank accounts.

On the 11th, the National Assembly held a plenary session and passed Kwak's resignation with 194 votes in favor out of 252 total votes. With Kwak no longer holding a lawmaker status, it was anticipated that the prosecution's summons for investigation was imminent.

Once the analysis of the seized items obtained during the search and seizure is completed, the prosecution is expected to summon and investigate former lawmaker Kwak.

Meanwhile, Kwak has consistently denied his charges. After the resignation was approved in the National Assembly, he posted on his Facebook, stating, "I once again declare that I have neither done anything related to the Daejang-dong development project or Hwacheon Daeyu nor been involved in any such matters," and added, "I will not hide behind my position as a lawmaker to evade responsibility."

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