State asks for 15 years in jail for former rep in development scandal

Social Affairs

Published: 30 Nov. 2022, 18:18

State asks for 15 years in jail for former rep in development scandal

Kwak Sang-do, a former lawmaker, leaves the Seoul Central District Court in southern Seoul on Wednesday. [YONHAP]

Prosecutors on Wednesday sought a 15-year prison term for a former lawmaker accused of taking a large amount of bribes from a land developer at the center of a big development corruption scandal.

Kwak Sang-do was indicted on charges of taking 5 billion won ($3.8 million) from an asset management firm, Hwacheon Daeyu Asset Management, in the form of severance pay for his son who worked at the firm. The actual amount was 2.5 billion won after deducting tax.

In return, Kwak allegedly helped the company form a consortium with KEB-Hana Bank for the project to develop the Daejang-dong district in Seongnam, just south of Seoul, into an apartment complex and reap astronomical profits.

In the latest hearing held at the Seoul District Court, prosecutors asked the court to also fine the defendant 5 billion won and force him to forfeit 2.5 billion won.

"Kwak is the corruption axis at the center of the Daejang-dong corruption case," a prosecutor said during the hearing, adding the amount of the bribe is unprecedented for a sitting lawmaker to take.

Kwak, who has denied the charges, said the prosecution did not present a single piece of direct evidence.

Prosecutors have expanded their investigation into the land development project, possibly targeting Democratic Party leader Lee Jae-myung.

The scandal centers on allegations that a small number of unheard-of private asset management companies, including Hwacheon Daeyu, were allowed to reap astronomical investment profits from a real estate development project in the Daejang-dong district in 2015, when Lee was the city's mayor.

Yonhap