Will the 'Daejang-dong Lobby and Upper Echelons' Be Revealed... Prosecution to Decide Gwak Sang-do's Custody Soon

Prosecution of Former Special Prosecutor Park Young-soo Uncertain... Deputy Chief Jeong Jin-sang to Be Summoned for Investigation Soon

[Asia Economy Reporter Baek Kyunghwan] The prosecution investigating the preferential treatment and lobbying allegations in the Daejang-dong development in Seongnam City is set to soon decide on the detention status of former National Assembly member Kwak Sang-do. Attention is focused on whether the previously stalled investigation into the 'upper echelon' of Daejang-dong will regain momentum. Former lawmaker Kwak faces the most concrete charges among the so-called '50 Billion Club' members, but the prosecution's earlier arrest warrant was dismissed.

According to the legal community on the 6th, the dedicated investigation team at the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) has been conducting supplementary investigations on former lawmaker Kwak for the past month and is currently finalizing the review of related testimonies.

During the investigation of developers involved in the Daejang-dong project, the team secured testimony suggesting that Kwak helped prevent the collapse of the Hana Bank consortium, which included Hwacheon Daeyu. The core allegation is that when A Construction, which had a subsidiary participating in a competing consortium, proposed to Kim Jung-tae, Chairman of Hana Financial Group, to break the consortium with Hwacheon Daeyu and join them instead, Hwacheon Daeyu's major shareholder Kim Man-bae asked Kwak to exert influence on Chairman Kim's side.

In particular, Kwak is believed to have met Kim in September 2018 to demand compensation for assisting the project, subsequently receiving 5 billion won through his son, who worked at Hwacheon Daeyu, under the guise of severance pay and other fees. Accordingly, on the 29th of last month, the investigation team 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, citing insufficient grounds for detention regarding necessity and appropriateness.

However, within the legal community, there is speculation that the investigation team, having conducted supplementary investigations and based on related testimonies, may specify Kwak's charges further and reapply for an arrest warrant. Last week, the team summoned Chairman Kim, the counterpart in the bribery case, as a witness and also called in an executive from the construction company participating in Hwacheon Daeyu's competing consortium.

The prosecution status of Park Young-soo, a former special prosecutor and another key figure in the lobbying allegations, remains uncertain. The investigation team summoned former Special Prosecutor Park again after about 40 days but reportedly failed to obtain any testimony that would advance the investigation. The team also summoned a lawyer from the law firm where Park previously worked as a witness to verify his involvement in the Daejang-dong project design process but found no incriminating evidence.

After Hwacheon Daeyu was established in 2015, former Special Prosecutor Park served as an advisory lawyer, receiving an annual advisory fee of 200 million won. His daughter also worked at Hwacheon Daeyu for several years before resigning. Allegations of preferential treatment arose when it was revealed that she purchased an apartment owned by the company at a price below market value. Additionally, Lee, known as a relative of former Special Prosecutor Park and the head of the Daejang-dong sales agency, is suspected of receiving 10.9 billion won from Kim Man-bae and delivering 10 billion won of that amount to civil engineering contractor Na around 2019.

The investigation team's determination regarding the upper echelon investigation is expected to become clear soon. The summons schedule for Jeong Jin-sang, Deputy Chief of the Democratic Party's election campaign committee and a key figure in the Seongnam City upper echelon investigation during the Daejang-dong development, has reportedly been set. Inside and outside the prosecution, it is predicted that the investigation team will summon Deputy Chief Jeong as early as this weekend.

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