Prosecution Notifies Kim Jung-tae, Hana Financial Group Chairman, for Summons and Investigation over 'Gwak Sang-do Bribery Allegation'

Kim Jung-tae, Chairman of Hana Financial Group, is moving to attend the meeting between the Financial Services Commission Chairman and Financial Holding Company Chairmen held on the afternoon of the 10th at the Korea Federation of Banks in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Yoo Byung-don] The prosecution investigating the lobbying and preferential treatment allegations related to the Daejang-dong development has notified Kim Jung-tae, Chairman of Hana Financial Group, to appear for questioning in connection with the bribery allegations involving former lawmaker Kwak Sang-do, who has been dubbed the so-called '50 Billion Club.'

According to the legal community on the 28th, the dedicated investigation team at the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) plans to question Chairman Kim on the 30th as a witness.

During the investigation of the Daejang-dong developers, the prosecution secured testimony suggesting that former lawmaker Kwak helped prevent the collapse of the Hana Bank consortium, which included Hwacheon Daeyu.

When H Construction, which involved its subsidiary in a competing consortium, proposed to Chairman Kim to break the consortium with Hwacheon Daeyu and join them instead, Hwacheon Daeyu's major shareholder Kim Man-bae reportedly asked former lawmaker Kwak to exert influence on Chairman Kim's side.

Chairman Kim, Kim Man-bae, and former lawmaker Kwak are all alumni of Sungkyunkwan University.

The prosecution believes that in September 2018, former lawmaker Kwak met with Kim Man-bae to demand compensation for assisting the project, and subsequently received about 2.5 billion won after taxes and other deductions, under the pretext of severance pay and other benefits, through his son who worked at Hwacheon Daeyu.

On the 29th of last month, the prosecution applied charges of bribery under the Act on the Aggravated Punishment of Specific Economic Crimes and requested an arrest warrant, but the court dismissed it, stating that there was insufficient evidence to justify the necessity and appropriateness of detention.

Since then, the prosecution has continued supplementary investigations for about a month.

On the 27th, they summoned an executive-level officer from H Construction involved in land development districts and public offering projects to verify the consortium participation process and the relationship with Hana Bank.

The prosecution is expected to summon Chairman Kim at the end of this month to confirm whether he received any requests related to the Daejang-dong project from former lawmaker Kwak during the consortium formation, and then decide whether to reapply for an arrest warrant for former lawmaker Kwak.

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