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[Alpha Biz=(Chicago) Reporter Kim Jisun] Prosecutors investigating former People's Power lawmaker Kwak Sang-do's alleged "alleged 5 billion bribes" have summoned former CEO of Hoban Construction Co., who participated in the Korea Development Bank consortium at the time of the initial public offering for the Daejang-dong project.

According to legal circles on the 1st, the Anti-Corruption Investigation Department 3 (Senior Prosecutor Kang Baek-shin) at the Seoul Central District Prosecutors' Office is investigating Jeon Joong-kyu (72), former vice chairman of the Hoban Construction Group, as a witness later in the day.

Jeon was the CEO of Hoban Construction in 2015 when Hwacheon Daeyu Asset Management, the Seongnam Garden Consortium involving Hana Bank, and the Korea Development Bank Consortium formed by Hoban Construction competed for the development project rights in Daejang-dong.

Prosecutors are reportedly asking Jeon why he needed Hana Bank for the Korea Development Bank consortium and how Hoban Construction pressured Hana Bank, as well as lawmaker Kwak's role.

Prosecutors believe Hoban Construction, then a consortium of the Korea Development Bank, pressured Hana Bank to do business together after moving out of Seongnam Garden.

At that time, Hoban Construction Group Chairman Kim Sang-yeol visited Hana Financial Group Chairman Kim Jung-tae and pressured them to "withdraw all Hoban construction funds deposited at Hana Bank if they do not accept the proposal."

The prosecution formed that former lawmaker Kwak, who was asked by major shareholder Kim Man-bae when the Seongnam People's Garden consortium was in crisis due to Hoban Construction, to influence Hana Bank to prevent the collapse of the consortium, and handed over 5 billion won (2.5 billion won after tax) in bribes through former lawmaker Kwak's son Byung Chae in the name of severance pay in return.

 

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