Prosecutors Re-summon Kwak Sang-do...Suspected of Receiving 50 Million Won from Lawyer Nam Wook

Recalled After 58 Days
Circumstantial Evidence Secured During Additional Investigation of Kim Jung-tae, Hana Financial Chairman

[Image source=Yonhap News]

[Asia Economy Reporter Kim Jin-ho] The prosecution investigating the lobbying and preferential treatment allegations related to the Daejang-dong development has re-summoned former lawmaker Kwak Sang-do in connection with the so-called '50 Billion Club.'

The dedicated investigation team of the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) is questioning former lawmaker Kwak on the afternoon of the 24th as a suspect. This is 58 days after his first summons on November 27 last year.

The prosecution's decision to re-summon former lawmaker Kwak after two months is interpreted as a sign of progress in proving the charges. The prosecution suspects that Kwak helped Hwacheon Daeyu, a private business operator in Daejang-dong, form a consortium with Hana Bank, and in return, had his son Byung-chae employed at Hwacheon Daeyu, receiving 5 billion won (2.5 billion won excluding taxes) under the name of severance pay and other fees.

When a competing consortium tried to recruit Hana Bank, Kwak reportedly exerted influence on Hana Financial Group at the request of Kim Man-bae, the major shareholder of Hwacheon Daeyu and a junior alumnus from Sungkyunkwan University, to prevent the consortium's collapse.

In particular, the prosecution has been conducting reinforced investigations for nearly two months, including questioning Kim Jung-tae, chairman of Hana Financial Group, who was identified as a person requested by Kwak's side, as a witness.

During the additional investigation, it is reported that the prosecution secured evidence that shortly after being elected in the 20th general election in April 2016, Kwak received 50 million won from lawyer Nam Wook, the owner of Cheonhwa Dongin No. 4. In the prosecution's investigation, lawyer Nam explained that this was compensation for legal assistance during an investigation by the Suwon District Prosecutors' Office.

However, considering that lawyer Nam paid the 50 million won shortly after the election victory, the prosecution suspects that it could be illegal political funds or bribes with quid pro quo.