[2021 National Audit] Controversy Until the Last Day: "Is the 5 Billion Won Industrial Accident Compensation for Gwak Sang-do's Son Justified?"

Comprehensive National Audit of the Ministry of Employment and Labor by the National Assembly Environment and Labor Committee on the 21st

Ruling Party Ahn Ho-young: "Isn't the 5 billion KRW used for other purposes?"
Opposition Kim Woong: "The important thing is to trace the funds... Only a special investigation can do it"

National Assembly Environment and Labor Committee's audit session. (Image source=Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] On the 21st, during the comprehensive audit of the Ministry of Employment and Labor by the National Assembly's Environment and Labor Committee, the controversy over the "5 billion KRW retirement pay from Hwacheon Daeyu" received by the son of independent lawmaker Kwak Sang-do resurfaced. The ruling party raised questions about the "nature" of the 5 billion KRW and urged the government to conduct an investigation, while the opposition party reiterated the necessity of a special prosecutor, arguing that a government-level investigation has its limitations.

On the morning of the same day, Ahn Ho-young, the ruling party secretary of the Environment and Labor Committee and a member of the Democratic Party of Korea, stated at the Ministry of Employment and Labor audit held at the National Assembly, "The employment rules of Hwacheon Daeyu lack specific details clarifying the nature of the 5 billion KRW received by Mr. Kwak, only stating that salary regulations and laws apply." Earlier, the Seongnam branch of the local Employment and Labor Office, which oversees Hwacheon Daeyu, requested the submission of employment rules from Hwacheon Daeyu on the 7th and received related documents on the 14th. Employment rules contain workplace regulations and working conditions that employees must follow, including details on wages, bonuses, retirement pay, and work-related injury compensation. This is to examine whether the 5 billion KRW retirement pay received by Mr. Kwak’s son from Hwacheon Daeyu due to industrial accidents and other reasons violates labor laws.

Ahn pointed out, "In particular, Hwacheon Daeyu claims to follow salary regulations but did not submit any separate regulations," adding, "Even though they state that compensation for injuries follows legal provisions, they paid an amount that violates the law." He continued, "Considering all this, it seems Hwacheon Daeyu did not have employment rules initially and hastily created them once the 5 billion KRW issue arose," and argued, "There is growing suspicion that the 5 billion KRW paid to Mr. Kwak was provided for other purposes."

Regarding this, Ahn also referred to a reported audio recording of a conversation about the 5 billion KRW payment between Kim Man-bae, the major shareholder of Hwacheon Daeyu, and Yoo Dong-gyu, former Planning Director of Seongnam Urban Development Corporation. In the recording, Yoo said, "Since lawmaker Kwak Sang-do is currently in office, it could be problematic, so it’s better to allocate the money to his son," to which Kim replied, "How can we give 5 billion KRW to the lawmaker’s son who is just a low-level employee?" Ahn said, "Even looking at this, the suspicious circumstances are increasing," and urged the government, "This matter must be thoroughly investigated, and if necessary, actively consider filing separate charges regarding the suspicious parts."

On the other hand, the opposition party once again called for the introduction of a special prosecutor. Kim Woong, a member of the People Power Party, said, "Is it enough to only examine the nature of the 5 billion KRW received by Mr. Kwak’s son under labor-related laws?" and emphasized, "The most important thing now is to trace the funds."

Kim added, "There has been no fund tracing at all, and neither the prosecution nor the police have produced any results," and said, "Only vague noises are being made, which frustrates the public."

He continued, "To trace the funds, under the current circumstances, a special prosecutor is ultimately necessary. How can you tell if it’s a bribe or not just by checking labor laws?" and demanded, "Many problems are emerging, and since the government investigation has limitations, a special prosecutor must be appointed."