ARREST WARRANT REQUEST REJECTED

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A local court has denied an arrest warrant request for former lawmaker Kwak Sang-do. Kwak was allegedly involved in the land development scandal in Seongnam, where Democratic Party presidential candidate Lee Jae-myung served as mayor. The court ruled there wasn’t sufficient reason to detain him, causing some disruption in the prosecution’s investigation.

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Former lawmaker Kwak Sang-do sparked controversy when his son was found to have received five billion won in severance pay as he left Hwacheondaeyu, the asset management company for the Seongnam development project. On Wednesday, the court denied the prosecution’s request to issue an arrest warrant for Kwak. The court explained that Kwak needed to be ensured of his right to defend himself because whether a crime has been committed is disputable. The court also said that the prosecution failed to fully explain the reason as well as the need and validity for detainment. Kwak, who had been waiting for the court’s decision at the Seoul Detention Center, returned home immediately afterwards.

[Soundbite] Kwak Sang-do(Former Lawmaker) : "I have been telling them that I had nothing to do with Hana Bank officials ever since my lawmaker days. It’s the same even now."

The prosecution had charged Kwak with acceptance of bribe. Back in 2015 when Hana Bank was attempting to leave the Seongnam consortium of which Hwacheondaeyu was a member Kwak had dissuaded Hana Bank from leaving the consortium and received money in return through his son. The prosecution listed 2.5 billion won of the five billion won after deducting taxes and other expenses, as bribe in the warrant request. But prosecutors could not provide any other evidence besides the testimonies of involved parties during the warrant review process. The former lawmaker met with reporters after Wednesday’s warrant review and said that the prosecution failed to describe when, where and why a favor was asked during his questioning. Following the court’s denial of an arrest warrant, the prosecution will inevitably face difficulties in investigating the lobbying allegations in the Seongnam development scandal.