Gwak Sang-do's Son: "'Hwacheon Daeyu 5 Billion' Consolation Money for Health Deterioration"

"Did Not Disclose Receiving 5 Billion Won to Parents and Spouse"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Young-won] Byeong-chae Kwak, son of former National Assembly member Kwak Sang-do, testified that the 5 billion KRW (2.5 billion KRW after tax) he received from Hwacheon Daeyu Asset Management was a consolation payment due to his deteriorating health.

On the 20th, Byeong-chae appeared as a witness at the trial of his father, former lawmaker Kwak, major shareholder Kim Man-bae of Hwacheon Daeyu, and lawyer Nam Wook, held at the Seoul Central District Court Criminal Division 22 (Presiding Judge Lee Jun-cheol), and made these statements.

When the prosecution asked Byeong-chae, "You were previously supposed to receive a performance bonus of 500 million KRW, but were you not surprised to be given ten times that amount?" he replied, "I was surprised," but added, "I understand that due to excess profits, other executives also renegotiated their performance bonus contracts." He further explained, "I think it also included consolation for my poor health and my performance."

Byeong-chae also explained that the reason he resigned from Hwacheon Daeyu was because his health had significantly worsened.

When the prosecution asked if he informed his father, former lawmaker Kwak, his mother, or his spouse about receiving the performance bonus, Byeong-chae said, "I did not inform them because it was a personal matter." When the prosecution pointed out, "It is hard to understand why you did not think to mention the severance pay," Byeong-chae rebutted again, stating, "I do not understand why I should have mentioned it," and argued, "I have never told anyone how much my salary was, and there is no reason to tell my father about the performance bonus."

The court decided to summon Byeong-chae again as a witness for further questioning at the next trial session on the 27th.

Byeong-chae majored in industrial design but was involved in real estate development work unrelated to his major at Hwacheon Daeyu. He resigned at the end of April last year and received a large severance payment. The prosecution views this severance pay as a bribe given to former lawmaker Kwak, but both Kwak and Byeong-chae claim it was a performance bonus for the success of the development project as well as a consolation payment for illness contracted during the work process.

Meanwhile, former lawmaker Kwak’s defense attorney requested at the trial, "The defendant’s detention period will soon expire, and we plan to file for bail," and asked the court, "Please allow us an opportunity to present our opinion at the end of the next trial." Former lawmaker Kwak was detained and indicted on February 22, and his first trial detention period will expire at midnight on August 22.

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