Prosecutors to Soon Indict Kwak Sang-do...First Charges on 'Daejang-dong Scandal' Lobbying Part

Suspected of pocketing 5 billion won in development project aid
Plan to indict before detention period expires
Confidence in proving guilt amid anticipated disputes
Remaining investigations postponed until after the presidential election
Debate continues over the true identity of 'Geubun'

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution is set to indict former lawmaker Kwak Sang-do, who is suspected of assisting the Daejang-dong development project and pocketing 5 billion won. The prosecution's investigation into the Daejang-dong development project allegations has been divided into two parts: preferential treatment and lobbying, with this being the first indictment related to the lobbying aspect.

The Seoul Central District Prosecutors' Office's dedicated investigation team (led by Deputy Chief Prosecutor Kim Tae-hoon) has decided to indict Kwak before the 23rd, which is the expiration date of his detention period.

Kwak is among the so-called "5 Billion Club" figures who allegedly received bribes during the Daejang-dong development project, and his prosecution is the fastest moving among them. He is accused of helping Hwacheon Daeyu Asset Management, the developer of Daejang-dong, form a consortium with Hana Bank in 2015, and in return, securing a job for his son Byung-chae at Hwacheon Daeyu, from which he allegedly received 5 billion won in severance pay and other benefits. Additionally, he is accused of receiving illegal political funds amounting to 50 million won from lawyer Nam Wook, the owner of Cheonhwa Dongin No. 4, during the 20th general election in April 2016.

After detaining Kwak on the 4th, the prosecution arrested and interrogated Hwacheon Daeyu major shareholder Kim Man-bae and lawyer Nam at the detention center to obtain additional statements. On the 16th, they forcibly summoned Kwak to strengthen the charges. The prosecution is confident in proving guilt based on the investigation results and Kwak's detention. However, Kwak has strongly denied the charges, exercising his right to remain silent during the investigation, so a fierce legal battle is expected in court.

The prosecution is reportedly postponing investigations into other members of the "5 Billion Club" until after the presidential election to avoid unnecessary misunderstandings and criticism that they are interfering in the election. Accordingly, the handling of former special prosecutor Park Young-soo and former Supreme Court Justice Kwon Soon-il is expected to take place later.

Former special prosecutor Park worked as a legal advisor receiving 20 million won annually after Hwacheon Daeyu's establishment in 2015 until his appointment to the state affairs special prosecutor investigating the national scandal. It has been confirmed that he received 50 million won from Kim Man-bae via a bank account. Park's daughter worked at Hwacheon Daeyu and purchased an apartment sold by Hwacheon Daeyu in June last year at half the market price, and also borrowed 1.1 billion won from the company over several years. Former Supreme Court Justice Kwon is known to have played a casting vote role in July 2019 when the Supreme Court overturned and remanded the case involving the then Gyeonggi Province governor and Democratic Party presidential candidate Lee Jae-myung on charges of violating the Public Official Election Act, ruling in favor of acquittal.

Although the prosecution has entered a pause mode, calls for investigation into the true identity of "that person" are expected to continue. The Korea Times reported that the prosecution confirmed that in the so-called "Jung Young-hak recording," Kim Man-bae referred to Justice A as "that person" and said, "I originally planned to make 5 billion won and buy a villa for him." The ruling party claims that it has been revealed that Democratic Party presidential candidate Lee Jae-myung and the Daejang-dong development project are unrelated. In contrast, the opposition and the prosecution argue that the "that person" Kim mentioned and the real owner of Cheonhwa Dongin No. 1, also referred to as "that person," are different individuals.

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