Hwacheon Daeyu: "Kwaksangdo's Son's Retirement Pay of 5 Billion KRW is Legal... Includes Daejang-dong Performance Bonus"

Kwaksangdo Son's Monthly Salary Ranges from 2.33 Million to 3.8 Million Won
Hwacheondaeyu "High Performance Bonuses Paid Upon Successful Completion of Development Projects"

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Regarding the preferential treatment allegations related to the Seongnam City Daejang-dong development project, the asset management company 'Hwacheon Daeyu' stated on the 26th that the 5 billion KRW paid to Kwak Byung-chae (32), son of People Power Party lawmaker Kwak Sang-do, was "legally paid as severance pay according to the company's internal payment standards and procedures."

In a statement, Hwacheon Daeyu explained the "peculiarity of its wage payment system," saying, "Unlike other general companies, most real estate development companies usually pay employees mainly a base salary and operate a wage compensation system that includes high performance bonuses upon the successful completion of development projects."

It added, "In the case of Mr. Kwak, the payment also included performance bonuses for the success of the Daejang-dong development project, which had been delayed until his retirement, and the severance pay calculation was not based solely on the base salary he had usually received but also included the performance bonuses from the success of the Daejang-dong development project."

Hwacheon Daeyu also stated, "The illness Mr. Kwak developed while working under heavy workload for seven years at Hwacheon Daeyu was also one of the reasons for his retirement," adding, "Among the amount paid at the time of retirement, there was also an amount approved and paid through a resolution of the company's board of directors as a retirement consolation payment for the illness."

Mr. Kwak joined Hwacheon Daeyu in June 2015 and worked in the compensation team before resigning in March this year. He received a monthly salary ranging from 2.33 million to 3.8 million KRW, and the severance pay amount of 5 billion KRW, which is 200 times the typical severance pay level (25 million KRW), has sparked controversy.