Second Detention Hearing for Gwak Sang-do Over 'Son's 5 Billion Won Severance Pay' Allegation Postponed to February 4

Former People Power Party lawmaker Gwak Sang-do [Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] The second detention hearing for former People Power Party lawmaker Kwak Sang-do (63), who is suspected of facilitating convenience for Daejang-dong developers and receiving bribes through his son, has been postponed until after the Lunar New Year holiday.

According to the court on the 26th, the detention hearing (warrant substantive examination) for former lawmaker Kwak, originally scheduled for 10:30 a.m. on the 27th at the Seoul Central District Court under Judge Moon Seong-gwan, who is in charge of warrants, has been postponed to the 4th of next month.

The day before, the dedicated investigation team of the Seoul Central District Prosecutors' Office (Team Leader Kim Tae-hoon, 4th Deputy Prosecutor) re-requested an arrest warrant for former lawmaker Kwak on charges including bribery under the Act on the Aggravated Punishment of Specific Crimes, acceptance of brokerage fees under the Act on the Aggravated Punishment of Specific Economic Crimes, and violation of the Political Funds Act.

Former lawmaker Kwak is suspected 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 excluding taxes) under the name of severance pay and other fees.

During the investigation, prosecutors reportedly uncovered circumstances where Company A at the time proposed to Kim Jung-tae, chairman of Hana Financial Group, to join the Industrial Bank consortium. Prosecutors suspect that Kim Man-bae, the major shareholder of Hwacheon Daeyu, asked former lawmaker Kwak to prevent the collapse of the Hana Bank consortium.

In the course of additional investigations, prosecutors 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.

Earlier, at the end of last year, prosecutors requested an arrest warrant for former lawmaker Kwak on charges of acceptance of brokerage fees, but the court dismissed it on the 1st of last month, citing disputes over the establishment of the crime.