'Son's 5 Billion Won Retirement Pay' Former People Power Party Lawmaker Kwak Sang-do's First Trial Today

Former People Power Party lawmaker Kwak Sang-do is leaving the Seoul Central District Court after completing his pre-arrest detention hearing on the 4th of last month. / Photo by Kim Dae-hyun

[Asia Economy Reporter Kim Daehyun] The first trial of former People Power Party lawmaker Kwak Sang-do (63), who is accused of favoring developers of the Daejang-dong project and receiving bribes through his son, is set to take place.

At 10:30 a.m. on the 17th, the 22nd Criminal Division of the Seoul Central District Court (Chief Judge Lee Joon-cheol) will hold the first preparatory hearing for the trial of Kwak and others, who have been detained and indicted on charges including bribery under the Act on the Aggravated Punishment of Specific Crimes. Since this hearing is a preparatory session, the defendants are not required to attend, so Kwak does not have to appear in court.

Kwak is accused of exerting influence on Hana Financial Group at the request of Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), which participated in the Daejang-dong development project in 2015, when the Hana Bank consortium involving Hwacheon Daeyu was on the verge of collapse. Prosecutors allege that in return, his son Byung-chae, who worked at Hwacheon Daeyu for about six years, received 5 billion won (2.5 billion won after tax) as severance pay.

Kwak is also accused of receiving illegal political funds amounting to 50 million won from lawyer Nam Wook, the owner of Cheonhwa Dongin No. 4, a subsidiary of Hwacheon Daeyu, around April 2016, when he was elected as a member of the National Assembly in the 20th general election. Nam was additionally indicted on related charges and is being tried alongside Kwak.

The preparatory hearing for the case of Kim, who was additionally indicted for embezzling company funds to bribe Kwak, will also be held at the same time by the 22nd Criminal Division.

According to a recording submitted to prosecutors by accountant Jung Young-hak, owner of Cheonhwa Dongin No. 5, Kim asked, "What does your father want?" to which Byung-chae replied, "What will you do with the money that was supposed to be given to my father?" Kim then said, "What if you give it all at once? Since it’s more than Executive Director A (Hwacheon Daeyu executive), you should split it into one or two payments and give it through you."

On the 10th, Kwak sent a letter from prison to the press, stating, "The prosecution has forcibly indicted me without finding any connection," denying the charges. He also said, "I never asked Hana Bank officials to keep the consortium, nor did I use any influence or help the Daejang-dong project while serving as a lawmaker. There is no reason for me to receive any money from Daejang-dong, and I have not actually received any."

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