[Exclusive] Kwak Sang-do: "If It Were Bribery, Would I Report It on Taxes?.. Leaving the Party Is a Decision to Avoid Burdening It"

Gwak Sang-do “Would I pay taxes and take bribes?
Huge profit schemes are by Lee Jae-myung”
Chaotic battle over Hwacheon Daeyu with roles reversed between ruling and opposition parties
From ‘Lee Jae-myung Gate’ to ‘Construction Gate’
Full-scale frame war between ruling and opposition parties begins

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] On the 27th, Gwak Sang-do, a member of the People Power Party, denied allegations that the 5 billion KRW retirement bonus his son received was a bribe in exchange for favors, saying in a phone interview with Asia Economy, “Have you ever seen someone receive a bribe after tax deductions from the tax office?” and added, “The claim that a bribe was received is nonsense and not true.”

Earlier, Gwak’s son, Byeong-chae, stated on social media that “before resigning in March this year, the performance bonus contract was changed to receive 5 billion KRW, and after withholding tax of 2.2 billion KRW, about 2.8 billion KRW was deposited into my account.” However, considering Gwak’s annual salary (average monthly pay of 3 million KRW) and Hwacheon Daeyu’s highest annual retirement bonus level (129 million KRW), the 5 billion KRW retirement bonus is an unusual amount, raising suspicions that it might be a ‘bribe in exchange for favors’ to his father, Gwak Sang-do.

Gwak told this outlet, “Basically, the company made huge profits, so the person who worked there took the money, but the problem was that the plan was made by Governor Lee Jae-myung,” and added, “It was Lee who basically designed the company to take enormous profits.” Regarding his submission of a resignation letter from the party, he explained, “Since it was an election season, I decided it was better not to be a burden in any way.” In response to Lee’s camp’s accusation of a ‘People Power Party construction gate,’ he strongly rebutted, “For it to be a People Power Party gate, there should be a case where we received money without reason, but in any case, it is true that I worked for that company and did the work.”

However, despite Gwak’s active explanations, the controversy is unlikely to subside. The opposition is trying to label this issue as ‘Lee Jae-myung’s design,’ but the actual beneficiaries of the development profits are narrowing down to opposition figures including the People Power Party, legal professionals, and existing private developers of the Daejang-dong project. In response, Lee’s camp, Open Camp, filed a complaint against Gwak on the same day for violations of the Public Official Election Act and the Information and Communications Network Act.

The Daejang-dong development preferential treatment allegations are competing with frames such as ‘Lee Jae-myung Gate,’ ‘the second BBK,’ ‘Gwak Sang-do’s Daddy Chance,’ and ‘People Power Party construction and legal gate.’ The future flow of the issue will largely depend on revealing whether Seongnam city officials were involved in solicitations or misconduct, and disclosing the average retirement bonus amounts paid to Hwacheon Daeyu employees, including the daughter of former special prosecutor Park Young-soo.