Prosecution appeals acquittal of ex-lawmaker of massive graft in development scandal

Prosecutors on Monday appealed the acquittal of a former lawmaker charged with receiving a large amount of bribes from a land developer at the center of a high-profile development corruption scandal.

Kwak Sang-do was found not guilty of taking 5 billion won (US$3.9 million) from the small asset management firm Hwacheon Daeyu Asset Management under the pretext of severance pay and incentives for his son who worked at the firm. Prosecutors put the actual amount of bribery at 2.5 billion won after deducting taxes and the son’s actual severance pay.

The Seoul Central District Prosecutors Office said it filed the appeal with a higher court earlier in the day, saying the decision was the wrong one under the law and did not meet social norms and common sense.

The Seoul Central District Court had acknowledged the money was unexceptionally large under social norms, but it has not been proven beyond a reasonable doubt that it was provided in return for favors.

In the same ruling, the court also acquitted the asset management firm’s de facto owner, Kim Man-bae, of providing the bribes.

The scandal centers on allegations that Hwacheon Daeyu was allowed to reap huge investment profits from the development project in Daejang-dong in Seongnam, just south of Seoul. The project was launched when Lee Jae-myung, leader of the main opposition Democratic Party, was mayor of Seongnam.