Former People Power Party lawmaker Gwak Sang-do / Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Kim Daehyun] Testimonies have emerged that the son of former National Assembly member Kwak Sang-do received benefits such as using the corporate card about 1 million KRW per month while working at Hwacheon Daeyu Asset Management (Hwacheon Daeyu), which is under suspicion of lobbying and preferential treatment in the Daejang-dong development project, as well as receiving loans worth several hundred million KRW from the company and being provided with a corporate vehicle.

On the 15th, the 22nd Criminal Division of the Seoul Central District Court (Chief Judge Lee Joon-cheol) held the 8th trial for three defendants: former lawmaker Kwak, Hwacheon Daeyu major shareholder Kim Man-bae, and lawyer Nam Wook, owner of Hwacheon Daeyu subsidiary Cheonhwa Dongin No. 4.

On this day, the prosecutor asked during the witness examination of Mr. Kim, "During Byeong-chae's tenure at Hwacheon Daeyu, he used the corporate card for about 51 million KRW, approximately 1 million KRW per month, or 10 million KRW per year," and asked, "Did other employees also receive corporate cards?" Kim replied, "Anyone who needed it had a corporate card."

However, when asked if "No regular employees other than executives received corporate cards," he answered, "That is correct." When the prosecutor said, "It seems Kwak Byeong-chae personally used the card at places like golf practice ranges or restaurants near his residence," Kim testified, "I approved (the use of the corporate card) for employees so they could diligently learn golf and later enjoy it as a hobby."

Regarding the reason why Byeong-chae was provided with a corporate vehicle, Kim said, "All employees were provided one, except those who refused," but when asked if regular employees other than Hwacheon Daeyu executives were also provided with commuting vehicles, he mentioned, "Byeong-chae was the only regular employee."

When the prosecutor pointed out that Hwacheon Daeyu paid 400 million KRW as a jeonse deposit for a company house and lent 500 million KRW to Byeong-chae, Kim claimed, "I don't think these are significant benefits," and argued, "They were provided from the perspective of welfare and work efficiency."

Earlier, former lawmaker Kwak was indicted on charges of exerting influence on Hana Financial Group at the request of Kim when the Hana Bank consortium, which Hwacheon Daeyu participated in, was on the verge of collapse in the early stages of the Daejang-dong development project in 2015. The prosecution's view is that in return, his son Byeong-chae, who worked at Hwacheon Daeyu for about six years, received 5 billion KRW as severance pay and about 500 million KRW in existing loans.

He is also accused of receiving illegal political funds of 50 million KRW from lawyer Nam in 2016, when he was elected as a member of the National Assembly in the 20th general election.

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