"Hard to Regard as Legitimate Compensation for Labor...
Money Was Effectively Given to Former Lawmaker Kwak"
Prosecutors have demanded prison sentences for former People Power Party lawmaker Kwak Sangdo and his son, who were indicted on charges of receiving 5 billion won (with an actual amount received of approximately 2.5 billion won) from a private developer in connection with the Daejang-dong development preferential treatment scandal. The verdict is scheduled to be delivered at 2:00 p.m. on January 30 next year.
During the sentencing hearing held on the 28th at the Seoul Central District Court’s Criminal Agreement Division 23 (Presiding Judge Oh Seyong), prosecutors requested a three-year prison sentence for former lawmaker Kwak, applying charges of violating the Act on Regulation and Punishment of Criminal Proceeds Concealment.
For his son, Kwak Byungchae, who was also brought to trial, prosecutors sought a nine-year prison sentence, a fine of 5,010,620,000 won-twice the amount received as bribes-and a forfeiture of 2,555,310,000 won.
In addition, for Kim Manbae, the major shareholder of Hwacheon Daeyu Asset Management who was implicated in the Daejang-dong business corruption, prosecutors requested a total of five years in prison: two years for concealing criminal proceeds, and three years for charges of bribery mediation and violating the Political Funds Act.
Prosecutors stressed, "It is not reasonable for the son of former lawmaker Kwak, who was a low-level employee, to receive 5 billion won as severance pay. It is easy to infer that this money was actually delivered to former lawmaker Kwak."
Former lawmaker Kwak was brought to trial on charges of receiving 5 billion won in the form of severance and bonus payments under his son Byungchae's name, after his son left Hwacheon Daeyu in April 2021, in violation of the Act on the Aggravated Punishment of Specific Crimes (bribery, etc.).
However, the court of first instance only recognized the charge of unlawfully receiving 50 million won in political funds from private Daejang-dong developer lawyer Nam Wook, acquitted him of bribery and bribery mediation charges, and ordered a fine of 8 million won and forfeiture of 50 million won.
Afterward, prosecutors conducted a supplementary investigation and, in October of the same year, re-indicted former lawmaker Kwak, his son, and Mr. Kim, adding charges such as violation of the Act on Regulation and Punishment of Criminal Proceeds Concealment, arguing that they disguised and concealed bribes as performance-based bonuses.
The appellate trial for former lawmaker Kwak’s bribery case is currently on hold, pending developments in this case.
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