Prosecutors Review Additional Summons and Arrest Warrant Request for Kwak Sang-do

Investigation into the '5 Billion Promise Club' Fully Underway... Focus Likely on Strengthening Charges with Additional Summons of Related Persons

[Asia Economy Reporter Baek Kyunghwan] The prosecution has officially launched an investigation into the '50 Billion Promise Club' figures related to the preferential treatment and lobbying allegations in Daejang-dong, Seongnam City. Following last weekend, additional summonses are planned for this week, and they are considering filing an arrest warrant for former People Power Party lawmaker Kwak Sang-do, who is judged to have clear charges.

According to the legal community on the 29th, the Daejang-dong Allegations Special Investigation Team at the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) is discussing additional investigation schedules concerning former lawmaker Kwak and related individuals to probe the lobbying allegations in the Daejang-dong development project.

The investigation team currently believes that in 2015, during the early stages of the Daejang-dong development project, when the consortium led by Hana Bank, which included Hwacheon Daeyu, was on the verge of collapse, former lawmaker Kwak exerted influence on Hana Financial Group at the request of Kim Man-bae, the major shareholder of Hwacheon Daeyu. A recording submitted by accountant Jeong Young-hak, owner of Cheonhwa-dongin No. 5, reportedly includes content stating that "former lawmaker Kwak contacted Hana Bank at Kim Man-bae's request to help maintain the consortium."

Previously, the investigation team summoned Kwak's son, Byung-chae, twice for questioning and recently conducted raids on Kwak's residence and office, as well as Hana Bank's headquarters. However, last weekend, former lawmaker Kwak completely denied the charges. He has also filed an appeal against the court's decision to freeze 10 of his son's bank accounts.

In the legal community, it is expected that the investigation team will file a pre-arrest warrant as early as this week against former lawmaker Kwak on charges such as bribery mediation, as the charges appear relatively clear. Under the Act on the Aggravated Punishment of Specific Economic Crimes (Special Act), bribery mediation is established when a third party mediates financial company business and receives or demands money or valuables. Initially, bribery charges were anticipated against Kwak in the Daejang-dong case, but since third-party bribery requires a public official to receive a bribe related to their duties, and Kwak's influence on Hana Bank was unrelated to official duties, the focus shifted from bribery to bribery mediation charges.

In fact, in 2015, during the early stages of the Daejang-dong development project, Kwak's position was chairman of the Korea Legal Aid Corporation, making it difficult for him to directly influence the project. However, as a former senior secretary for civil affairs at the Blue House, it is analyzed by the legal community that he could have exerted influence on Hana Bank regarding the Daejang-dong project.

Regarding former special prosecutor Park Young-soo, it is expected that more time will be needed to prove the charges. Park served as a legal advisor to Hwacheon Daeyu, and his children were employed there, receiving one remaining apartment unit in the Daejang-dong complex. Last weekend, the investigation team questioned Lee, the head of a sales agency related to Park's relatives, and Kim about the flow of funds amounting to around 10 billion won, but Park reportedly maintained that there were no illegal financial transactions.

Additionally, the police plan to request an arrest warrant for former Seongnam City Council Chairman Choi Yoon-gil, who is accused of accepting bribes from the Daejang-dong developers. Choi was actively involved in the establishment of the Seongnam Urban Development Corporation in February 2013, which enabled the Daejang-dong development. The police believe that Choi, who led the submission and passage of the ordinance establishing the corporation in the city council plenary session, resigned as a council member and then worked as an executive at Hwacheon Daeyu, receiving tens of billions of won in performance bonuses as compensation.

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