Assemblyman Kwak Sang-do's Son's 5 Billion Won Severance Pay
"Our Company's Basic Severance Pay is 500 Million Won"
Advisory Group Including Key Legal Figures
"They Provided Psychological Advice... No Quid Pro Quo"
Kim Man-bae, the largest shareholder of Hwacheon Daeyu, who has been suspected of receiving special favors during the development process of Daejang-dong in Seongnam-si, Gyeonggi-do, is appearing at the Yongsan Police Station in Seoul on the 27th for investigation. Photo by Kang Jin-hyung aymsdream@
[Asia Economy Reporter Jeong Dong-hoon] Kim Man-bae, the largest shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), which is suspected of receiving special favors in the Daejang-dong district development project in Seongnam, Gyeonggi Province, appeared at the police station on the 27th for a witness investigation.
Kim entered the Yongsan Police Station in Yongsan-gu, Seoul, at around 9:55 a.m. that day, stating, "There was no illegality," and "I will sincerely explain during the police investigation."
Regarding the formation of the legal advisory group, which included key figures from the legal community, he said, "There was no quid pro quo," and added, "We invited those who gave us a lot of psychological advice, but I apologize for unintentionally becoming embroiled in controversy."
Concerning the recent allegations that the son of independent lawmaker Kwak Sang-do (former member of the People Power Party) worked at Hwacheon Daeyu for seven years and received a retirement allowance amounting to about 5 billion won, Kim stated, "Our company’s basic retirement allowance is 500 million won," and "It is decided and paid through executive meetings or board meetings to those who have achieved results within the company." He further explained, "Mr. Kwak’s son has not yet resigned, so the retirement allowance has not been finalized, and he suffered an industrial accident."
Currently, Kim is under suspicion of breach of trust and embezzlement, including borrowing 47.3 billion won from Hwacheon Daeyu under the name of a long-term loan and not repaying it. The police are expected to question Kim about the purpose of the fund usage.
Hwacheon Daeyu participated in the Daejang-dong public development project promoted by Lee Jae-myung, a leading presidential candidate of the Democratic Party of Korea and former mayor of Seongnam, and received dividends amounting to 1,154 times the invested capital, raising suspicions of special favors.
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