Former People Power Party lawmaker Gwak Sang-do, Hwacheon Daeyu Asset Management major shareholder Kim Man-bae, and Daejang-dong private developer lawyer Nam Wook
[Asia Economy Reporter Kim Daehyun] The prosecution has demanded a 15-year prison sentence for former People Power Party lawmaker Kwak Sang-do (63), who was indicted on charges including accepting bribes from Hwacheon Daeyu Asset Management (Hwacheon Daeyu), the leading company in the Daejang-dong development project. The first trial sentencing hearing is scheduled for January 25 next year.
On the 30th, during the final defense session held at the Seoul Central District Court Criminal Division 22 (Presiding Judge Lee Joon-cheol), the prosecutor requested the court to sentence former lawmaker Kwak to 15 years in prison and impose a fine of about 5 billion won, which is twice the amount of the bribe received. The prosecutor also asked for an order to confiscate the bribe amount of about 2.5 billion won. Kim Man-bae, the major shareholder of Hwacheon Daeyu, was sentenced to 5 years in prison, and lawyer Nam Wook, a private developer of Daejang-dong, was sentenced to 1 year in prison.
◆Prosecution: “Large bonuses to a low-level employee... difficult to accept socially”
In court that day, the prosecutor actively refuted former lawmaker Kwak’s claim that the money was received as compensation or bonuses for his son Byung-chae’s health deterioration. The prosecutor pointed out that according to Byung-chae’s medical certificate, he suffered from relatively minor illnesses such as vertigo and chronic cough, and there was no reason to receive a large sum for health deterioration. The prosecutor also noted that Byung-chae regularly participated in early morning soccer matches and had called a driving school to get a motorcycle license while working at Hwacheon Daeyu, indicating no problems in daily life.
The prosecutor emphasized, “A huge bonus of 5 billion won before tax cannot be paid to a low-level employee like Byung-chae,” and added, “This was not a performance bonus but an amount paid to Kwak Sang-do.” Furthermore, the prosecutor stated, “This crime formed a collusive relationship with former lawmaker Kwak, who was elected to the National Assembly, and can be seen as one pillar of the ‘Daejang-dong corruption.’ The amount directly obtained by the sitting lawmaker through bribery is an unprecedented 2.5 billion won, and the method of payment was cleverly disguised as a bonus for his son, which is socially unacceptable. There is still no sign of remorse.”
On the other hand, former lawmaker Kwak’s defense team pleaded not guilty, claiming he never exerted influence on the Daejang-dong project and was unaware that Byung-chae received severance pay. The defense attorney argued, “Regarding the bribery charges under the Act on the Aggravated Punishment of Specific Crimes, the indictment states that around January 2015, accountant Jung Young-hak, who was instructed by Kim, reported on the Daejang-dong development project twice, implying involvement in the project. However, Jung and others came for legal consultation and advice related to other criminal cases.”
Regarding the allegation that Kwak received a request from Kim to allow Hana Bank to participate in the consortium, the defense said, “This is completely false,” emphasizing, “The decision for Hana Bank to participate was made long before, as confirmed by related testimonies.” Kwak also stated that he never contacted executives or officials from Hana Bank in this regard.
The defense added, “Byung-chae submitted his application and self-introduction through a job information site,” and “He went through a normal interview process and was hired,” further stating, “It is a consistent testimony from related parties that he was dedicated enough to become ill.”
◆Kwak Sang-do denies charges, saying “I never acted in a punishable way”... First trial sentencing on January 25 next year
In his final statement, former lawmaker Kwak said, “After being detained in Seoul Detention Center for about six months, no matter how much I thought about it, I could not understand what actions I had taken that deserved punishment,” and added, “The prosecution seemed solely intent on targeting and eliminating me.”
Kim stated, “While operating Hwacheon Daeyu, I never once asked former lawmaker Kwak for help or tried to give him bribes,” and “Kwak never demanded anything from me,” adding, “I exaggerated and boasted about my role to my partners to share company operating costs as common expenses, which caused endless misunderstandings.” He also apologized, saying, “Because of my exaggerations and poor language habits, I am standing in this courtroom. I sincerely apologize once again to former lawmaker Kwak.”
Lawyer Nam expressed deep regret, saying, “I am truly sorry for causing a great social disturbance. I am very ashamed,” but appealed to the court, “Please carefully review and judge the parts I did not do.”
The court concluded the defense proceedings that day and decided to hold the sentencing hearing at 2 p.m. on January 25 next year.
Earlier, former lawmaker Kwak was arrested and indicted on charges including bribery under the Act on the Aggravated Punishment of Specific Crimes for allegedly receiving 5 billion won (2.5 billion won after tax) at the end of April last year through his son Byung-chae, who worked at Hwacheon Daeyu, in return for helping Hwacheon Daeyu form a consortium with Hana Bank in the 2015 Daejang-dong project. After 185 days in detention, he was released on bail in August and has since been on trial without detention.
Former lawmaker Kwak denies the charges, claiming he never helped the Daejang-dong group and was unaware that his son received severance pay. Kim was also indicted on charges of bribing Kwak, and lawyer Nam was indicted for giving illegal political funds of 50 million won, but both deny the charges.
However, in a previous hearing, lawyer Nam testified that “Kwak told Kim, ‘Just take the money out of the company and serve three years in prison,’” but Kwak and Kim’s sides questioned the credibility of Nam’s testimony and strongly denied the statement.
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