Prosecutors Conduct Search and Seizure at Gwak Sang-do's Residence, Office, and Hana Bank Headquarters... Related to 'Son's 5 Billion Won Retirement Pay' (Comprehensive)

Former Lawmaker Kwak Likely to Be Summoned Once Evidence Analysis Is Completed

Former People Power Party National Assembly member Gwak Sang-do.

[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 (led by Deputy Chief Prosecutor Kim Tae-hoon) carried out search and seizure operations this morning at former lawmaker Kwak's residence, his office, and the Euljiro Hana Bank headquarters in Jung-gu, Seoul.

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

Former lawmaker Kwak is suspected of exerting influence over Kim Jung-tae, chairman of Hana Financial Group, during the Daejang-dong development project to prevent the collapse of the Hana Bank consortium involving Hwacheon Daeyu. The prosecution reportedly secured related testimonies while investigating major shareholder Kim Man-bae of Hwacheon Daeyu, lawyer Nam Wook, and Hana Bank officials. Both 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 with the court to preserve confiscation 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 and investigation would soon follow.

Once the analysis of the seized items from today's search is complete, the prosecution is expected to summon former lawmaker Kwak for questioning.

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

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