Prosecutors Raid Korea Development Bank and Hoban Construction Over Kwak Sang-do's 5 Billion Won Bribery Case

The prosecution investigating the '5 billion won bribery suspicion' involving former lawmaker Gwak Sang-do and his son Byeong-chae has conducted a search and seizure at the Industrial Bank of Korea and Hoban Construction.

Prosecutors [Image source=Yonhap News]

The Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kang Baek-shin) is conducting a search and seizure of email servers and other related materials from the Industrial Bank of Korea, Hoban Construction, and other related parties on the 24th in connection with former lawmaker Gwak and his son Byeong-chae's alleged violations of the Act on the Aggravated Punishment, etc. of Specific Crimes, including concealment of criminal proceeds. This search and seizure is reported to be a continuation of the one conducted on the 11th of this month. At that time, the prosecution searched about ten places including Hoban Construction and Bukuk Securities, and they proceeded on this day to secure additional evidence.

The prosecution suspects that in 2015, former lawmaker Gwak prevented the collapse of the Seongnam-e Deul consortium, which included Hwacheon Daeyu Asset Management, and in return, received 5 billion won from Kim Man-bae, the major shareholder of Hwacheon Daeyu, under the pretext of retirement pay for his son Byeong-chae.

In the 2015 Daejang-dong development project bidding, three groups applied: the Seongnam-e Deul consortium, the Industrial Bank of Korea consortium, and the Meritz Securities consortium. At that time, Hoban Construction, which belonged to the Industrial Bank of Korea consortium, proposed to Hana Bank to join, putting the Seongnam-e Deul consortium, which Hana Bank had initially planned to participate in, at risk of collapse. The prosecution believes that former lawmaker Gwak, at Kim's request, exerted influence on Hana Bank to prevent this.

The first trial court, which heard former lawmaker Gwak's case, ruled in February that it was difficult to consider Gwak and his son as an 'economic community' and did not recognize the 5 billion won retirement pay received by Byeong-chae as a bribe. After appealing and conducting additional investigations, the prosecution has now indicted Byeong-chae as an accomplice in receiving the 5 billion won bribe under the Act on the Aggravated Punishment, etc. of Specific Crimes.

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