The prosecution has launched a forced investigation into former special prosecutor Park Young-soo, who handled the state corruption scandal, thereby intensifying the investigation into the so-called 'Daejang-dong 5 Billion Club.'
The Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Eom Hee-jun) sent prosecutors and investigators on the 30th to the residences and offices of former special prosecutor Park and lawyer Yang Jae-sik on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (including bribery), securing approval documents and bank transaction records.
Former special prosecutor Park is suspected of receiving 5 billion won as a reward for assisting in the consortium formation by excluding Bukuk Securities when Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management, prepared the public offering for the Daejang-dong development project while Park served as chairman of the board at Woori Bank in 2014. Park's daughter also received 1.1 billion won while working at Hwacheon Daeyu from September 2019 to February 2021.
Park's side claimed that it was a normal loan with an annual interest rate of 4.6% and a three-year term, recorded as a loan in the company's accounting books, and that there was also an IOU. However, the transaction was pointed out as suspicious due to its connection with the 5 Billion Club allegations. His daughter was also suspected of gaining about 800 million won in capital gains by purchasing an apartment in Daejang-dong, revealing circumstances linking her to the Daejang-dong developers.
Lawyer Yang worked at the law firm Gangnam, where former special prosecutor Park was the lead attorney, and assisted Park as a special prosecutor deputy in 2016. He also jointly represented Jo Woo-hyung, who was identified as a broker arranging loans from Busan Savings Bank to the Daejang-dong private developers, along with former special prosecutor Park. In the so-called 'Jung Young-hak recordings,' the Daejang-dong group referred to Yang's recruitment as a 'masterstroke.'
The 5 Billion Club refers to individuals whom Kim promised to share the profits from Daejang-dong with. They include former Supreme Court Justice Kwon Soon-il, former special prosecutor Park Young-soo, former lawmaker Kwak Sang-do, former Prosecutor General Kim Soo-nam, former Blue House Senior Secretary for Civil Affairs Choi Jae-kyung, and journalist Hong Mo.
The prosecution has been tracking funds with the possibility that the criminal proceeds concealed by Kim flowed to these individuals under the pretext of lobbying. So far, only the investigation into former lawmaker Kwak has progressed. Kwak was indicted on charges including receiving tens of billions of won in bribes from Daejang-dong private developers under the pretext of his son's retirement pay and was fined 8 million won in the first trial. The investigation team is analyzing the first trial verdict, conducting additional investigations, and preparing for the second trial.
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