Gwak Sang-do, Second Detention Hearing Ends... "Prosecutors Trying to Detain Based Only on 'Possibility'"

Former People Power Party lawmaker Gwak Sang-do is leaving the courthouse after completing his pre-arrest detention hearing, held on the 4th at the Seoul Central District Court under the presiding judge Moon Seong-gwan. / Photo by Kim Dae-hyun kdh@

[Asia Economy Reporter Kim Daehyun] Former People Power Party lawmaker Kwak Sang-do, who became embroiled in controversy after his son received a large retirement payment from Hwacheon Daeyu Asset Management (Hwacheon Daeyu), claimed that "the prosecution is only talking about possibilities regarding the charges."

On the 4th, former lawmaker Kwak finished his second pre-trial detention hearing (warrant review) held at 10:30 a.m. under the presiding judge Moon Seong-gwan of the Seoul Central District Court’s warrant division after about five hours, stating, "The prosecution says there is a high possibility that I lobbied at Hana Bank, and they say that because I did something special, I was given a reward, and that there is a high possibility of that."

Regarding the recorded transcript submitted to the prosecution by accountant Jeong Young-hak, the owner of Cheonhwa-dongin No. 5, a subsidiary of Hwacheon Daeyu, Kwak drew a clear line, saying, "It has no evidentiary value, and such a thing did not happen." According to recent media reports, the transcript contains Kim saying, "Byung-chae’s father keeps asking for money. Through Byung-chae," implying that former lawmaker Kwak requested money through his son.

In relation to this, former lawmaker Kwak emphasized again, "(Even today, the prosecution) talked about the transcript in court," and "It will not be evidence that will be admitted anyway."

Regarding allegations that he received 50 million won in illegal political funds around April 2016 from lawyer Nam Wook, owner of Cheonhwa-dongin No. 4, after being elected as a member of the 20th National Assembly in the general election, he said, "(Both Nam lawyer and I) say it was a 'lawyer (retainer) fee' cost," and "(The prosecution) says that since money was exchanged at that time, it must be political funds, but there is no other story."

However, when asked "what case was entrusted to lawyer Nam," he was reserved, saying, "There is the Nam Wook lawyer case."

Former lawmaker Kwak also said, "The part related to Hana Bank, which the prosecution emphasizes, has nothing to do with me," and "I still do not know to whom the lobbying was done. If there is a way to go to an unknown executive and make a request, please tell me." Regarding allegations of preferential treatment in the Daejang-dong project facing cultural heritage excavation issues, he said, "The fact that a request was made is not stated as a criminal fact."

Former lawmaker Kwak is waiting for the detention hearing result while on standby at Seoul Detention Center. Judge Moon, who heard opinions from both the prosecution and Kwak’s side, is expected to decide on detention as early as late that night after reviewing the records.

Earlier, the Seoul Central District Prosecutors’ Office’s dedicated investigation team (led by Deputy Chief Prosecutor Kim Tae-hoon) filed a detention warrant for Kwak at the end of last year on charges of bribery under the Act on the Aggravated Punishment of Specific Economic Crimes, but it was dismissed. The dedicated investigation team added charges of bribery under the Act on the Aggravated Punishment of Specific Crimes and violations of the Political Funds Act through supplementary investigations and refiled the detention warrant on the 25th of last month.

The prosecution initially judged that when the Hana Bank consortium participating in the Daejang-dong development project in early 2015 was on the verge of collapse, Kwak exerted influence on behalf of Hwacheon Daeyu’s major shareholder Kim Man-bae to Hana Financial Group. In return, Kwak’s son Byung-chae, who worked at Hwacheon Daeyu for about six years, received 5 billion won (2.5 billion won after tax) as a retirement payment, according to the prosecution’s view. The warrant also newly includes the allegation that Kwak received 50 million won in illegal political funds from lawyer Nam around April 2016 after being elected as a member of the 20th National Assembly in the general election.

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