Reigniting the Daejang-dong '5 Billion Club'... Prosecutors to Start Investigation on the '6 Members'?

Decision on Gwak Sang-do's Detention Soon... Kim Soo-nam and Choi Jae-kyung Draw Attention Again Following Park Young-soo and Kwon Soon-il

[Asia Economy Reporter Baek Kyunghwan] The prosecution's investigation into political and legal lobbying allegations related to Seongnam City's Daejang-dong project has entered a new phase. Concrete evidence has emerged that Kim Man-bae, the major shareholder of Hwacheon Daeyu, attempted to provide money to six members of the '50 Billion Club,' including former National Assembly member Kwak Sang-do. However, the prosecution has not even once questioned some of these six individuals.

According to the legal community on the 20th, the Seoul Central District Prosecutors' Office's dedicated Daejang-dong investigation team (led by Kim Tae-hoon) plans to soon decide on the disposition of former lawmaker Kwak among the '50 Billion Club' members and then determine whether to investigate the remaining individuals. A prosecution official stated, "Details of the investigation process cannot be confirmed," but added, "We intend to continue investigating the raised allegations."

Both inside and outside the prosecution expect changes in the lobbying investigation following the disclosure of recorded conversations between Kim and accountant Jeong Young-hak, owner of Cheonhwa Dongin No. 5. Considering that former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu, Kim, and lawyer Nam Wook were consecutively indicted based on these recordings, it is judged that it will be difficult to further delay the investigation speed into the six individuals appearing in the same recordings.

So far, among the six mentioned, only former lawmaker Kwak's investigation direction has been decided. Kwak is suspected of exerting influence on Kim Jung-tae, chairman of Hana Financial Group, at Kim Man-bae's request when the Hana Bank consortium, which Hwacheon Daeyu, the private developer of Daejang-dong, participated in, was on the verge of collapse. The controversy over the 50 Billion Club began with the claim that the 5 billion KRW received by Kwak's son from Hwacheon Daeyu was the payoff. The investigation team has also checked with Chairman Kim to confirm whether there was an actual solicitation.

However, the disposition of former lawmaker Kwak has been delayed. Previously, the investigation team requested an arrest warrant against Kwak on charges including violation of the Act on the Aggravated Punishment of Specific Economic Crimes (brokerage), but the court dismissed it. The team is currently considering reapplying for the warrant or proceeding with a non-custodial indictment.

Former special prosecutor Park Young-soo worked as an advisory lawyer for Hwacheon Daeyu after its establishment in 2015 and received an annual advisory fee of 200 million KRW. His daughter also worked as an employee at Hwacheon Daeyu for several years before quitting. Allegations of preferential treatment arose after it was revealed that she purchased an apartment owned by the company at a price below market value.

Investigations into the other individuals have been sluggish. Former Supreme Court Justice Kwon Soon-il is suspected of 'trial trading' for taking on an advisory role at Hwacheon Daeyu in exchange for expressing a not-guilty opinion in the Supreme Court plenary session regarding Lee Jae-myung, the Democratic Party presidential candidate (former Gyeonggi Province governor), on charges of violating the Public Official Election Act. However, it is reported that proving the allegations is difficult.

Former Prosecutor General Kim Soo-nam and former Senior Secretary for Civil Affairs Choi Jae-kyung have not even been questioned. They maintain the position that "they had no involvement in the Daejang-dong project whatsoever and have never received or promised any money related to it." A lawyer with a prosecution background commented, "Although the Daejang-dong investigation began with the key evidence of Jeong Young-hak's recordings and produced a series of indictments, the differing pace of investigation into the six other figures could be seen as selective investigation. This will be an important factor in assessing the influence of the recordings in the ongoing trials."

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