Prosecutors Miss Kwak Sang-do, Launch Reinforced Investigation into 'Lobbying Allegations'

Concerns Over Investigation Momentum Decline Following Former Lawmaker Kwak's Arrest Warrant Dismissal... Efforts to Shift Atmosphere Including Schedule Rescheduling

Former People Power Party lawmaker Kwak Sang-do, who is suspected of helping developers in Daejang-dong and receiving 5 billion won in money and goods through his son, appeared at a pre-arrest detention hearing at the Seoul Central District Court in Seocho-gu, Seoul on the 1st, avoiding the press by entering through a different entrance. On the same day, the press waited in front of the courthouse. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Baek Kyunghwan] The prosecution investigating the preferential treatment and lobbying allegations in the Daejang-dong development in Seongnam City is set to strengthen its investigation into the '50 Billion Club.' Although they have not secured the custody of former lawmaker Kwak Sang-do, who is suspected of pocketing tens of billions of won under the pretext of his son's severance pay, they plan to continue the investigation by finding concrete charges against the other related individuals.

According to the legal community on the 2nd, the Seoul Central District Prosecutors' Office's special investigation team for the Daejang-dong allegations (led by Deputy Chief Prosecutor Kim Tae-hoon) began coordinating additional investigation schedules for the '50 Billion Club' figures following the rejection of the arrest warrant for former lawmaker Kwak the previous day. A prosecution official revealed, "Since we were criticized for relying almost solely on testimonies when requesting the warrant for former lawmaker Kwak, we have no choice but to prepare thoroughly for the remaining allegations."

The court rejected the arrest warrant request for former lawmaker Kwak, who is accused of bribery under the Act on the Aggravated Punishment of Specific Economic Crimes, late the previous night. The decision was based on a lack of sufficient explanation regarding the necessity and appropriateness of detention. It was confirmed that during the warrant hearing, the prosecution responded that they could not specify who the bribery counterpart was when questioned by the judges.

The investigation team failed to substantiate the charges against former lawmaker Kwak, whose case was considered the most advanced in the investigation, making a cautious approach necessary for the remaining lobbying allegations. First, they plan to intensify the investigation into the other individuals involved. Former special prosecutor Park Young-soo and former Supreme Court Justice Kwon Soon-il, who were recently questioned by the prosecution, are among those mentioned first. In Park's case, additional investigation is inevitable due to his extensive connections with Hwacheon Daeyu private business operators. However, proving quid pro quo regarding his advisory role at Hwacheon Daeyu, his child's apartment allocation in Daejang-dong, and the 10 billion won reportedly received by his in-laws from Hwacheon Daeyu is challenging.

Regarding former Justice Kwon, it is known that the investigation is approaching the case not as a 'judicial deal suspicion' but as a violation of the Attorney-at-Law Act. After retirement, Kwon allegedly did not report to the Korean Bar Association and served as an advisor to Hwacheon Daeyu, receiving approximately 15 million won monthly, totaling about 150 million won in advisory fees during that period.

The investigation will also intensify regarding former Seongnam Urban Development Corporation (Seongnam UDC) Development Project Director Yoo Han-gi, who is suspected of pressuring former Seongnam UDC President Hwang Mu-seong to resign. Although the search warrant for Yoo was rejected by the court last month, he is implicated in allegedly receiving about 200 million won from private developers in Daejang-dong.

Additionally, it is expected that the investigation will continue to verify whether former Secretary General Lim Seung-min, who assisted Lee Jae-myung, the Democratic Party presidential candidate and former Seongnam mayor from July 2014 to October 2016, was involved. There is also speculation about the possibility of summoning former Chief Secretary Jeong Jin-sang. Jeong is currently under suspicion of attempting to destroy evidence after it was revealed that he contacted former Seongnam UDC Planning Director Yoo Dong-gyu just before the latter was searched by the investigation team.