Former lawmaker Kwak Sang-do heading to court [Seoul=Yonhap News]

Kwak Sang-do, a former lawmaker of the People Power Party, has been acquitted in the first trial for allegedly receiving 5 billion won (2.5 billion won after taxes) from Kim Man-bae, a private developer in the Daejang-dong project.

The Seoul Central District Court's Criminal Agreement Division 23 (Presiding Judge Oh Se-yong) acquitted Kwak Byeong-chae, the son of former lawmaker Kwak Sang-do, on charges of bribery under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes and violation of the Act on the Prevention of Criminal Proceeds Concealment.

Former lawmaker Kwak Sang-do, who was also indicted for violating the Act on the Prevention of Criminal Proceeds Concealment, was acquitted.

The court stated, "For Kwak's son to be found guilty of bribery, a conspiracy with former lawmaker Kwak Sang-do must be established." The court added, "It is difficult to conclude that former lawmaker Kwak Sang-do promised to receive 5 billion won from Kim as a reward for solicitation or mediation, and there is no evidence to prove that Kwak's son conspired in the bribery offense."

Regarding the charges of violating the Act on the Prevention of Criminal Proceeds Concealment against former lawmaker Kwak Sang-do and Kim, the court pointed out, "The prosecution arbitrarily exercised its prosecutorial authority with the intention of overturning the first trial's outcome by seeking a second judgment on the facts through a separate indictment, instead of proceeding with the appeal process of the previous trial." The court continued, "The defendants have suffered the substantive disadvantage of receiving two first-instance judgments on essentially the same matter, which constitutes an abuse of prosecutorial power."

However, the court found Kim guilty of aiding and abetting solicitation bribery under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes and violating the Political Funds Act, and sentenced him to a fine of 5 million won.

Former lawmaker Kwak Sang-do was indicted for receiving 5 billion won from Hwacheon Daeyu Asset Management, where Kim was the largest shareholder, in April 2021, as severance pay and bonuses for his son Byeong-chae, who had resigned from the company. He was acquitted in the first trial in February 2023.

At that time, the court found former lawmaker Kwak Sang-do guilty only of illegally receiving 50 million won in political funds from lawyer Nam Wook, a private developer in the Daejang-dong project, and sentenced him to a fine of 8 million won.

Subsequently, in October of the same year, the prosecution additionally indicted former lawmaker Kwak Sang-do and his son, as well as Kim, for violating the Act on the Prevention of Criminal Proceeds Concealment, alleging that they concealed bribes received in relation to the lawmaker's duties by disguising them as performance bonuses.

The prosecution believed that Kim provided the bribe to former lawmaker Kwak Sang-do to prevent the Seongnam Eui-tteul consortium, established by the Daejang-dong group, from collapsing due to Hana Bank's intention to withdraw.

The prosecution discovered that former lawmaker Kwak Sang-do had conspired with Kim to receive additional money from lawyer Nam in April 2016, beyond the initial 50 million won, and also applied charges of solicitation bribery under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes and violation of the Political Funds Act. This involved former lawmaker Kwak Sang-do receiving 100 million won in exchange for helping to dismiss a criminal indictment against lawyer Nam.

Furthermore, it was newly confirmed that Kim donated 3 million won in November 2016 through Park, an employee of Hwacheon Daeyu, under the guise of donations to former lawmaker Kwak Sang-do, and in August 2017, had Nam Wook and Jeong Yeong-hak each donate 5 million won, and these acts of violating the Political Funds Act were also brought to trial.