[Asia Economy Reporter Kim Daehyun] Former People Power Party lawmaker Kwak Sang-do (63), who was arrested on charges of favoring developers of the Daejang-dong project and receiving bribes through his son, is refusing to cooperate with the investigation, prompting prosecutors to consider forcibly summoning him for questioning.
According to the legal community on the 14th, the dedicated investigation team at the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) had planned to summon former lawmaker Kwak, who is detained at Seoul Detention Center, in the afternoon, but the investigation was unsuccessful as Kwak's side refused to comply.
Since his arrest on the 4th, Kwak has continuously refused to cooperate with the prosecutors' investigation. His detention period was extended once on the 13th and is set to last until the 23rd. Prosecutors are reportedly considering forcibly summoning him within the detention center if he continues to refuse to appear.
Kwak is accused of exerting influence on Hana Financial Group at the request of Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), when the Hana Bank consortium involving Hwacheon Daeyu was on the verge of collapse during the early stages of the Daejang-dong development project in 2015. In return, his son Byung-chae, who worked at Hwacheon Daeyu for over six years, allegedly received 5 billion won (2.5 billion won after tax) as severance pay, according to prosecutors.
He is also accused of receiving illegal political funds amounting to 50 million won around April 2016, when he was elected as a member of the National Assembly in the 20th general election, from lawyer Nam Wook, the owner of Cheonhwa-dongin No. 4, a subsidiary of Hwacheon Daeyu.
Meanwhile, Kwak issued a statement through his lawyer on the same day, claiming, "I have already undergone sufficient investigation by the prosecutors," and argued, "The prosecutors did not even identify who the Hana Bank executive was, nor is there any evidence that the suspect made any requests or received bribes related to any official duties, yet they included almost false information in the arrest warrant application and detained me."
He further emphasized, "The charge of violating the Political Funds Act is also fabricated by disguising legal fees as political funds," adding that the prosecutors have already reached a conclusion and that he has undergone sufficient investigation, so he has nothing more to say to the prosecutors. He stated, "I will prove my innocence in court," and added, "I do not plan to request a detention review as I want a swift indictment."
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