Park Young-soo's Daughter Worked at Hwacheon Daeyu and Took a 1.1 Billion Loan... Park's Side Says "No Problem with the Transaction"

[Asia Economy Reporter Kim Hyung-min] When it was reported that the daughter of former special prosecutor Park Young-soo borrowed 1.1 billion KRW from Hwacheon Daeyu Asset Management (Hwacheon Daeyu), a private company involved in the Daejang-dong development, while working there, Park’s side explained that it was a legitimate loan with a promissory note and that the transaction was not problematic.

According to the legal community on the 7th, the dedicated investigation team at the Seoul Central District Prosecutors’ Office (led by Deputy Chief Prosecutor Kim Tae-hoon) investigating lobbying and preferential treatment allegations related to the Daejang-dong development confirmed that Hwacheon Daeyu transferred 1.1 billion KRW in five installments to the account of Park’s daughter, Park Mo, from September 2019 to February 2021. Park joined Hwacheon Daeyu in June 2016 and received an annual salary of about 60 million KRW.

The prosecution is reportedly examining whether there was any illegality in this financial transaction, as there is a possibility it could be seen as a bribe related to former special prosecutor Park, who is suspected of involvement in the so-called “50 billion club.” However, Park’s daughter is said to have presented evidence such as the promissory note during the investigation to prove that the funds were legitimate. It is reported that she borrowed the money as a short-term loan with an annual interest rate of 4.6% and a three-year term, formalized by a promissory note.

Park’s side also released a statement on the same day, explaining, “Park’s daughter worked at Hwacheon Daeyu for nearly five years and, due to family needs, wrote a promissory note and received a legitimate loan,” adding, “The money was officially recorded as a loan in the company’s accounting.”

They continued, “Although the repayment deadline has not yet arrived, part of the loan has been repaid, and the remaining loan will be repaid by the due date,” emphasizing, “The allegations of preferential treatment are completely unfounded and have nothing to do with former special prosecutor Park.”