Gwak Sang-do 'Not Guilty for 5 Billion Won Retirement Pay'... Even Ruling Party Says "Lost Fairness"

Gwak Sang-do's 5 Billion Won Severance Pay 'Not Guilty' Fallout
"Allegations of 'Lenient Investigation'... Special Prosecutor Needed"

[Asia Economy Reporter Yoon Seul-gi] The political repercussions continue as the first trial ruled that the 5 billion won received by former People Power Party lawmaker Kwak Sang-do from Daejang-dong developers as severance pay for his son cannot be considered a bribe. The opposition parties have demanded a special prosecutor, suspecting a 'lenient investigation' by the prosecution for failing to prove quid pro quo.

Earlier on the 8th, Kwak, who was indicted on charges including accepting bribes from Hwacheon Daeyu Asset Management (Hwacheon Daeyu), which led the Daejang-dong development project, was acquitted in the first trial regarding the 5 billion won severance pay (2.5 billion won after taxes, etc.) received by his son Kwak Byung-chae.

The key issue in recognizing the bribery charge was whether the money received by Byung-chae from Hwacheon Daeyu could be evaluated as directly received by former lawmaker Kwak Sang-do. However, the court acknowledged that although the severance pay and performance bonus received by Byung-chae were unusual in scale, "the performance bonus and other payments received by Byung-chae cannot be evaluated as something Kwak Sang-do received as a quid pro quo." The court's main reasoning was that Byung-chae was already independent and they were not an economic community.

Former People Power Party lawmaker Kwak Sang-do, who is accused of receiving bribes under the pretext of his son's severance pay from the Daejang-dong group, is attending the first trial sentencing hearing related to violations of the Act on the Aggravated Punishment of Specific Crimes at the Seoul Central District Court in Seocho-gu, Seoul on the 8th. Photo by Kang Jin-hyung aymsdream@

The opposition criticized the ruling as "a judgment inconsistent with the public's sense of justice" and "Yugeommujeo Mugeomyujo" (meaning "no crime if the prosecution has power, crime if the prosecution lacks power"). On the 8th, Kim Eui-gyeom, spokesperson for the Democratic Party of Korea, held a press conference at the National Assembly communication office, stating, "The court ruled not guilty because it was difficult to see the 5 billion won as money given in exchange or because Kwak's son maintains an independent livelihood," and criticized it as "a ruling that betrays even the minimal trust placed in the judiciary."

Spokesperson Kim said, "This ruling has fully exposed the true face of the Korean legal community," and criticized, "It proved that if you are an elite in the legal community, receiving about 5 billion won will not cause any trouble. An 'immortal sacred family.'"

Democratic Party lawmaker Park Yong-jin also criticized on Facebook on the 8th, asking, "Did our judiciary really rule that the 5 billion won received by Kwak Sang-do's son was 'legally obtained money'?" and called it "a ruling completely inconsistent with the public's sense of justice." Lawmaker Park Chan-dae also pointed out on Facebook the same day, "They cover up existing crimes and desperately try to fabricate non-existent crimes."

Former Lee Eon-ju, member of the Future United Party (predecessor of the People Power Party). / Photo by Yoon Dong-ju doso7@

Even within the ruling party, some criticized the ruling as lacking fairness and difficult to accept. Former Future United Party (predecessor of the People Power Party) lawmaker Lee Eon-ju, a lawyer, said regarding the not guilty verdict based on Byung-chae being married and maintaining an independent livelihood, "It was given in advance to the future heir son, so isn't it also tax evasion on inheritance tax?" and added, "Compared to cases like Jeong Yoo-ra or Cho Min, it is clearly unfair."

Jang Sung-chul, director of the Public Opinion Center, mentioned that Kwak is a former prosecutor and pointed out the prosecution's insufficient investigation. On the 9th, he appeared on SBS Radio's 'Kim Tae-hyun's Political Show' and said, "Since Kwak's son joined Hwacheon Daeyu through Kwak's introduction, it should be seen that Kim Man-bae and Kwak are connected, and although Kwak was active in the National Assembly at the time, the prosecution conducted an insufficient investigation," adding, "We can only conclude that it was a 'lenient investigation' as the opposition claims."

Meanwhile, the Justice Party has called for a special prosecutor. Kim Hee-seo, senior spokesperson for the Justice Party, said in a briefing at the National Assembly communication office that "The judiciary has lost trust due to a ruling that is so contrary to the common sense of the people. There is a strong public suspicion that this is a lenient investigation within a rigid prosecutor cartel and privilege cartel," and added, "The entire nation senses that improvement is impossible by relying solely on the prosecution and judiciary."

She continued, "The prosecutor's incompetence in failing to prove quid pro quo and the suspicion of lenient investigation have now reached a point where the National Assembly must step in and correct it," and stated, "We will explore all measures, including a special prosecutor, to uncover the substantive truth of Kwak Sang-do's 5 billion won bribery charge and the Daejang-dong 5 billion club."