Prosecutors Summon Kwak Sang-do Over Son's 5 Billion Won Retirement Pay Allegation... Accelerating Lobbying Investigation

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution, investigating allegations of preferential treatment and lobbying in the Daejang-dong development, summoned former lawmaker Kwak Sang-do on the 27th over suspicions of a "5 billion won retirement payment to his son."

According to legal circles, the dedicated investigation team of the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) summoned former lawmaker Kwak in a private session from 10 a.m. as a suspect and is currently investigating him.

Former lawmaker Kwak is suspected of helping Hwacheon Daeyu form a consortium with Hana Bank and, in return, having his son Byung-chae employed at Hwacheon Daeyu, subsequently receiving 5 billion won under the name of his son's retirement payment. The prosecution plans to apply charges of bribery mediation under the Act on the Aggravated Punishment of Specific Crimes.

The prosecution believes that when the Hana Bank consortium involving Hwacheon Daeyu was on the verge of collapse, Kwak, at the request of Kim Man-bae (detained and indicted), the major shareholder of Hwacheon Daeyu and a junior alumnus of Sungkyunkwan University, exerted influence on Hana Financial Group.

Earlier, Kwak's son Byung-chae was summoned twice last month as a suspect and investigated by the prosecution.

The prosecution, after indicting Kim, lawyer Nam Wook, accountant Jeong Young-hak, and former Seongnam Urban Development Corporation director Yoo Dong-gyu, appears to be accelerating the investigation into lobbying allegations following the conclusion of the preferential treatment probe.

The day before, former special prosecutor Park Young-soo and Money Today chairman Hong Seon-geun, who are on the so-called "5 billion club" list of those who received or promised money from Daejang-dong developers, were summoned for questioning.