Resignation from Assembly Member Position: Kwak Sang-do Says "Too Much Distrust, Nothing I Say Matters" (Summary)

Rep. Kwak's Expulsion Seems to Cause Party Rift
20 Million Won Donation "Difficult to Respond Due to Regulations"
"Earnestly Hope for Investigation Through Special Prosecutor"

Independent lawmaker Gwak Sang-do is greeting ahead of his resignation announcement regarding the controversy over his son's 5 billion KRW retirement pay from Hwacheon Daeyu at the National Assembly Communication Office in Yeouido, Seoul on the morning of October 2, 2021. Photo by Yonhap News

[Asia Economy Reporter Hyunju Lee] Gwak Sang-do, an independent lawmaker who became embroiled in controversy after his son, who worked at Hwacheon Daeyu Asset Management, received a large severance payment, resigned from his National Assembly seat on the 2nd. Gwak urged people to "put aside misunderstandings" while calling for a thorough investigation through a special prosecutor. He also expressed some resentment toward the People Power Party, which he was affiliated with until recently.

After a press conference on the 2nd, Gwak told reporters, "There is already so much distrust toward me that no matter what I say, it won't help, so I am stepping down to sort things out," explaining the reason behind his resignation.

Regarding the sense of deprivation felt by the younger generation over the severance pay issue, he expressed regret, saying, "I am sorry." However, he drew a line by stating, "It was a matter between the company and my son, so I do not fully understand the situation." Gwak’s son joined Hwacheon Daeyu Asset Management, the developer of Pangyo Daejang-dong in June 2015, worked there for nearly six years, and before resigning in March, changed his performance bonus contract to receive 5 billion KRW. In April, after taxes, he received about 2.8 billion KRW as severance pay.

The internal party rift over Gwak’s expulsion also seemed to have influenced his resignation. After People Power Party leader Lee Jun-seok repeatedly expressed his intention to expel Gwak in various media interviews, Supreme Council member Jo Su-jin strongly opposed this, leading to a clash of opinions. When reporters asked if the mention of expulsion was related to his resignation, Gwak said, "It cannot be related."

Regarding political donations sent to Gwak by Hwacheon Daeyu officials, he responded, "It would be better to ask them. Since it was done according to regulations, it is difficult to answer why they gave it." Earlier, it was revealed that Gwak received 20 million KRW in donations from key Hwacheon Daeyu figures.

Gwak demanded a special prosecutor investigation upon his resignation. At the press conference, he stated, "Since the heads of the prosecution and police are composed in a regime-friendly manner, I doubt whether the investigation will be thorough and fair, so I earnestly hope for an investigation through a special prosecutor." He also asserted that if former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu is investigated, the truth will be revealed. In a meeting with reporters, Gwak pointed out, "The project design itself was collusive," and said, "Isn't the person who designed it with Yoo Dong-gyu candidate Lee Jae-myung? I think a thorough investigation is necessary regarding that part."