'Son's 5 Billion Won Retirement Pay' Gwak Sang-do Claims Innocence, Says "Prosecution Dramatized" in First Trial

by Kim Daehyun

Published 13 Apr.2022 10:54(KST)

Former People Power Party lawmaker Gwak Sang-do

[Asia Economy Reporter Kim Daehyun] 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, claimed innocence at his first trial, stating that "the charges in this case are inconsistent with or fabricated from the evidence investigated by the prosecutor."

At 10 a.m. on the 13th, the Criminal Division 22 of the Seoul Central District Court (Presiding Judge Lee Joon-cheol) held the first trial of former lawmaker Kwak, who was indicted on charges including bribery under the Act on the Aggravated Punishment of Specific Crimes. Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), was also present in court, indicted on charges including embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, along with Nam Wook, a lawyer and owner of Hwacheon Daeyu’s subsidiary Cheonhwa Dongin No. 4, who was indicted for violating the Political Funds Act.

Former lawmaker Kwak appeared in the defendant’s seat wearing a navy jacket instead of a suit and fully denied the charges, saying, "(The prosecution) is concealing evidence favorable to the defendant and distorting the substantive truth." He added, "I have never received any requests from Kim Man-bae, nor do I know the details of the consortium related to Hana Bank," and stated, "The indictment is a fictional fact that does not exist."

Former lawmaker Kwak is accused of exerting influence on Hana Financial Group at Kim’s request when the Hana Bank consortium, which Hwacheon Daeyu participated in during the early stages of the Daejang-dong development project in 2015, was on the verge of collapse. The prosecution’s view is that in return, his son Byung-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.

On the other hand, Kwak countered, saying, "I only became aware of this case when it started to be publicized through the media," and "At that time, I was not aware that my son had received severance pay and bonuses."

He is also accused of receiving 50 million KRW in illegal political funds from lawyer Nam in 2016, after being elected as a member of the National Assembly in the 20th general election. However, Kwak’s side argues that Nam’s related testimony was made in expectation of leniency following the prosecution’s suggestion, and that the charges are not true.

His lawyer argued on the day, "This was a fee for legal services, not political funds," and "It is hard to imagine that (Nam) would provide a large amount of political funds when he had not even been decided as a party candidate."

Former lawmaker Kwak also personally claimed that the reason he first met with lawyer Nam was not to receive a briefing on the Daejang-dong project plan, but rather to consult on a separate case that Nam and others were under investigation for.

Kwak’s trial is scheduled to be held once a week, every Wednesday going forward.