"50 Billion Won Daejang-dong Bribery Acquittal" Kwak Sang-do's Appeal Resumes After 21 Months... Defense Alleges "Prosecutors Coerced and Swayed Nam Wook"

[Financial News] The bribery appeal trial of former People Power Party (PPP) lawmaker Kwak Sang-do has resumed after more than two years. Kwak argued that the appellate court must take into account emerging allegations that prosecutors coerced and pressured attorney Nam Wook, a key figure in the Daejang-dong scandal, into giving certain statements.
On the 14th, Criminal Division 3 of the Seoul High Court, presided over by Judge Lee Seunghan, held a preparatory hearing in the appeal case of former lawmaker Kwak, attorney Nam, and Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management. They are charged with bribery and other offenses under the Act on the Aggravated Punishment of Specific Crimes.
The proceedings had been on hold for about one year and nine months. After an appeal hearing in July 2024, the court postponed further dates to await the first-instance verdict in a subsequent case, in which prosecutors additionally indicted Kwak for violating the Act on Regulation and Punishment of Criminal Proceeds Concealment. In February this year, the trial court in that additional case acquitted Kwak and dismissed the indictment, prompting the court to resume scheduling in the present appeal.
The bench heard opinions from the defendants and prosecutors on whether to merge the main case with the subsequent one and said it would soon decide and notify the parties. Kwak’s side opposed consolidation, while Kim’s side stated it favored merging the cases. Nam’s defense did not express a particular view.
The court also asked prosecutors to submit an additional opinion on whether there was any violation of the Political Funds Act. In response, Kwak’s defense argued, "Former lawmaker Kwak neither participated in nor was even aware of his son Byung-chae Kwak receiving the money," and contended, "The issue under the Political Funds Act also concerns intent, so it appears the prosecution did not even properly review that aspect." The court explained that it was merely seeking clarification because the existing indictment did not specifically address that point.
At the end of the hearing, Kwak took the stand and raised allegations of coercive investigative practices by prosecutors. He stated, "Facts are coming to light that prosecutors coerced and pressured attorney Nam during the investigation," referring to suspicions of inducement of testimony that were discussed in the Special Committee for the Investigation of State Affairs of the National Assembly. He went on, "Testimony by attorney Nam that resulted from such inducement has no evidentiary value," adding, "It is fortunate that the prosecutors’ coercion and inducement are now being exposed, and I hope the court will take this into account in the future proceedings."
The court plans to decide on the consolidation issue and then hold another preparatory hearing on June 2.
Kwak was indicted on charges of receiving 5 billion won from Hwacheon Daeyu in 2021, allegedly disguised as severance pay and bonuses for his son, Byung-chae Kwak, who left the company in April that year. In February 2023, the trial court acquitted him of the main bribery charge. However, it found him guilty only of illegally receiving 50 million won in political funds and imposed a fine of 8 million won.
In October of the same year, prosecutors additionally indicted Kwak, his son, and Kim, alleging that they disguised bribes related to Kwak’s duties as a lawmaker as performance-based bonuses and concealed them, in violation of the Act on Regulation and Punishment of Criminal Proceeds Concealment and other laws. In February this year, the first-instance court dismissed the indictment against Kwak and acquitted his son. Kim was found guilty only on part of the charges, including Acceptance of Bribe for Mediation and certain violations of the Political Funds Act. The appeal in that additional case is scheduled to hold its first hearing on May 8.
scottchoi15@fnnews.com Choi Eun-sol Reporter