"Deputy Severance Pay Equivalent to Large Corporation CEO Level?" Gwak Sang-do's Son's '5 Billion' Sparks Outrage Among Office Workers

Table Comparing Severance Pay of Senior Executives in Top 30 Domestic Groups
"Assistant Manager's Value Similar to CEO's," "Does This Make Sense?" Netizens Outraged
Gwak Sang-do's Son: "High Bonuses Reflect Company Profits"
"Worked Hard, Got Recognized, Earned a Lot," Explanation

Kwak Sang-do, People Power Party lawmaker / Photo by Yonhap News

[Asia Economy Reporter Lim Juhyung] Anger is growing among 2030 office workers over Kwak Mo, the son of People Power Party lawmaker Kwak Sang-do, who received 5 billion KRW as severance pay from 'Hwacheon Daeyu,' which is under suspicion of preferential treatment in the Daejang-dong development project in Seongnam, Gyeonggi Province.

On an internet community bulletin board, a post was uploaded stating that the severance pay Kwak received is comparable to that of executives at major domestic conglomerates. There are criticisms questioning whether it makes sense for a 30-something assistant manager to receive treatment similar to that of a conglomerate group CEO.

On the 27th, several online communities posted articles titled "Severance Pay Rankings of Professional Managers in the Top 30 Groups."

These posts were based on information recorded in the Financial Supervisory Service's electronic disclosure system, creating a ranking table of severance pay received by senior executives of the top 30 domestic conglomerates.

Kwak ranked as high as 4th on this list. Before retirement, Kwak's position was assistant manager. A person in their early 30s at the assistant manager level received severance pay similar to that of conglomerate group vice chairmen and presidents.

Retirement pay ranking table of Assemblyman Kwak's son, Kwak Byung-chae, posted on an online community / Photo by Online Community Capture

Seeing the table, office workers in their 20s and 30s expressed outrage. One netizen pointed out, "A newcomer to society is worth about the same as CEOs who have worked their entire lives at companies. Does this make sense?" Another netizen sarcastically criticized, saying, "I'm sorry to my father for not being Kwak. I am in a position where I can't even receive 5 billion KRW in company severance pay."

Earlier, on the 26th, Kwak disclosed detailed information about the severance pay and salary he received through a statement. He explained, "In June 2020, I signed a performance bonus contract including 500 million KRW in severance pay, but before leaving in March 2021, the performance bonus contract was changed to a payment of 5 billion KRW," adding, "After withholding tax, I received about 2.8 billion KRW in my account around April 30."

He added, "This was not the amount promised at the time of joining. All executives signed performance bonus contracts," and "I do not know the specific timing and amount well as these were agreements between each individual and the company."

According to Kwak's explanation, after joining Hwacheon Daeyu in June 2015, he received a monthly salary of 2.33 million KRW until February 2018. From March to September 2018, he received 3.33 million KRW, and thereafter until January of this year, he received a pre-tax salary of 3.83 million KRW.

The entrance of Hwacheon Daeyu, an asset management company suspected of preferential treatment in the Daejang-dong development project in Bundang-gu, Seongnam-si, Gyeonggi-do, on the 16th. / Photo by Yonhap News

Kwak is known to have started working after being introduced to Hwacheon Daeyu by his father, lawmaker Kwak.

Regarding the high amount of his performance bonus and consolation money, he explained, "It is due to the company making an enormous profit," adding, "Once while driving, and another time at the company, I collapsed and was transported to the hospital by colleagues. I worked hard, was recognized, got injured, and earned a lot of money."

Meanwhile, amid growing controversy over the amount of severance pay Kwak received, lawmaker Kwak decided to voluntarily leave the party on the same day.

Kim Ki-hyun, floor leader of the People Power Party, said at a press meeting after an emergency supreme council meeting, "There was a media report today related to lawmaker Kwak's son, and I received a report that lawmaker Kwak submitted his resignation to the Daegu city party."

The resignation of lawmaker Kwak, who is a local constituency member, can be processed immediately within the party. However, even if the resignation is completed, he will retain his seat in the National Assembly and will continue to act as an independent lawmaker.