Son of PPP lawmaker receives massive severance pay from controversial firm

Sep 27, 2021, 08:57 am

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Rep. Kwak Sang-do of the main opposition People Power Party (PPP)/ Photographed by Lee Byung-hwa

AsiaToday reporter Lee Wook-jae

Kwak Byung-chae, 32-year-old son of Rep. Kwak Sang-do of the main opposition People Power Party (PPP) revealed Sunday that he received net pay of 2.8 billion won in the name of severance pay from Hwacheon Daeyu Asset Management, an asset management firm at the center of a controversial land development scandal. He seemingly came forward to explain the controversy after being suspected of receiving 5 billion won. He stressed that ‘everything was all set by the time he joined the firm.

After allegations were raised that Hwacheon Daeyu paid 5 billion won to retiree Kwak, he issued a statement saying, “The performance-based pay contract was changed in March 2021 to offer me 5 billion won before my retirement. I received about 2.8 billion won into my after being taxed on April 30, 2021.”

Kwak explained that he joined the firm upon recommendation of his father, saying, “My father told me his acquaintance surnamed Kim was looking for someone to work for real estate development business and that I should look for it if I’m interested,” Kwak said. Kim appears to be a former journalist, who went to the same university as Rep. Kwak.

“It was not the amount promised when I joined the company,” Kwak said. “All executives and employees have signed a performance-based pay contract, and I am not aware of the specific timing and amount as they signed their contracts individually,” he said. “The reason the company offered such a large amount of bonus and consolations is because the company has made huge profits. If it couldn’t make such profit, I would have not been able to get the bonus so much.”

“It is not true that my father was behind Hwacheon Daeyu, and that he was paid for it,” Kwak said. “The key of the case is a matter of design that allowed people to earn hundreds of billions of dollars,” he stressed.

Previously, Kwak joined the firm in June 2015 and left the company in March 2021. He was paid 2.3 million to 3.8 million won per month, but received an unusually large amount of severance pay, causing controversy. Regarding this, the ruling Democratic Party (DP) insisted that whether it is a direct investment or a bribe should be revealed.

Meanwhile, Rep. Kwak declared his departure from the PPP Sunday amid growing criticism over his son’s severance pay.

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