Prosecution Arrests and Indicts Kwak Sang-do for Son's 5 Billion Won Retirement Pay... "Bribery and Political Funds Act Violations"

Former People Power Party lawmaker Gwak Sang-do

[Asia Economy Reporter Kim Daehyun] Former People Power Party lawmaker Kwak Sang-do (63), accused of favoring developers of the Daejang-dong project and receiving bribes through his son, was indicted in custody on the 22nd.

On the afternoon of the same day, the dedicated investigation team of the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) announced that former lawmaker Kwak was indicted in custody on charges including bribery under the Act on the Aggravated Punishment of Specific Economic Crimes, bribery under the Act on the Aggravated Punishment of Specific Crimes, and violations of the Political Funds Act.

The prosecution first judged that in 2015, during the early stages of the Daejang-dong development project, when the Hana Bank consortium involving Hwacheon Daeyu was on the verge of collapse, former lawmaker Kwak exerted influence on Hana Financial Group at the request of Kim Man-bae, the major shareholder of Hwacheon Daeyu. In return, his son Byung-chae, who worked at Hwacheon Daeyu for about six years, received 5 billion won (approximately 2.5 billion won after tax) as severance pay, according to the prosecution's view.

According to a recorded transcript submitted to the prosecution by accountant Jeong Young-hak, owner of Cheonhwa Dongin No. 5, a subsidiary of Hwacheon Daeyu, Kim was heard saying, "Byung-chae's father keeps asking for money. Through Byung-chae," implying that former lawmaker Kwak requested money through his son.

Former lawmaker Kwak is also accused of receiving illegal political funds amounting to 50 million won from lawyer Nam Wook, owner of Cheonhwa Dongin No. 4, around April 2016, when he was elected as a member of the 20th National Assembly.

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