Prosecutors Refile Arrest Warrant for Kwak Sang-do over Son's 5 Billion Won Severance Pay

Former People Power Party lawmaker Gwak Sang-do Photo by Yonhap News

[Asia Economy Reporter Kim Daehyun] The prosecution has refiled an arrest warrant for former People Power Party lawmaker Kwak Sang-do (63), who is suspected of favoring developers of the Daejang-dong project and receiving bribes through his son.

On the afternoon of the 25th, the dedicated investigation team of the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) refiled an arrest warrant against former lawmaker Kwak on charges including bribery under the Act on the Aggravated Punishment of Specific Crimes, receiving bribes through mediation under the Act on the Punishment of Economic Crimes, and violations of the Political Funds Act.

Previously, former lawmaker Kwak was accused of assisting Hwacheon Daeyu, the developer of the Daejang-dong project, in forming a consortium with Hana Bank, and in return, having his son employed at Hwacheon Daeyu and receiving 5 billion won (2.5 billion won after tax) under the pretext of severance pay and other fees.

During the investigation, the prosecution reportedly uncovered evidence that at the time, a construction company (referred to as Company A) proposed to Kim Jung-tae, chairman of Hana Financial Group, to join the Korea Development Bank consortium. The prosecution suspects that Kim Man-bae, the major shareholder of Hwacheon Daeyu, asked former lawmaker Kwak to prevent the collapse of the Hana Bank consortium.

Earlier, the prosecution filed an arrest warrant against former lawmaker Kwak for receiving bribes through mediation at the end of last year, but the court dismissed it on the 1st of last month, citing disputes over the establishment of the crime.

During further investigation, the prosecution also secured evidence that former lawmaker Kwak received 50 million won from lawyer Nam Wook (50, detained and indicted), owner of Cheonhwa Dongin No. 4, shortly after being elected in the 20th general election in April 2016, adding charges of violating the Political Funds Act to the warrant.

The pretrial detention hearing for former lawmaker Kwak will be held on the morning of the 27th at the Seoul Central District Court, presided over by Judge Moon Seong-gwan, who is in charge of arrest warrants.