'Son's 5 Billion Won Retirement Pay' Gwak Sang-do Arrested and Indicted... Lawyer: "Will Prove Innocence" (Comprehensive)

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 and mediation under the Act on the Aggravated Punishment of Specific Economic Crimes, and violations of the Political Funds Act.

The prosecution initially 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 exercised influence over Hana Financial Group at the request of Kim Man-bae, the major shareholder of Hwacheon Daeyu. In return, Kwak’s son, Byung-chae, who worked at Hwacheon Daeyu for about six years, reportedly received 5 billion KRW (approximately 2.5 billion KRW after taxes) as severance pay, according to the prosecution’s perspective.

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 asks 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 KRW around April 2016 from lawyer Nam Wook, owner of Cheonhwa-dongin No. 4, after being elected as a member of the 20th National Assembly.

Meanwhile, Kwak’s legal representative stated in a press release, "The prosecution indicted former lawmaker Kwak based solely on imagination and speculation," adding, "The truth that the prosecution’s imagination is completely different from the facts will be revealed during the trial process." The statement also said, "After thoroughly reviewing the indictment and the records submitted by the prosecution, we will prove former lawmaker Kwak’s innocence at trial."

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