A court ordered the lifting of a freeze on the financial accounts of Gwak Sang-do's son, Byeong-chae, imposed in connection with the "5 billion won severance pay allegation" case.
According to legal sources, the Seoul Central District Court Criminal Appeals Division 2-1 (Presiding Judges Gwak Jeong-han, Kang Hee-seok and Jo Eun-a) accepted on Feb. 9 an appeal in a case challenging a ruling that had granted a request for preservation for forfeiture filed by former People Power Party lawmaker Gwak.
Preservation for forfeiture is a measure that ties up assets suspected to be criminal revenue so they cannot be disposed of before judgment, in preparation for the possibility that forfeiture or collection may be ordered at trial.
The assets for which preservation for forfeiture was lifted this time are financial institution accounts under Byeong-chae's name. In Oct. 2021, while investigating the "5 billion won severance pay allegation," prosecutors sought preservation for forfeiture on part of the assets of former lawmaker Gwak and Byeong-chae, and the court granted the request.
Gwak's side appealed in Nov. of the same year, seeking to overturn the decision. After reviewing the case, the appellate panel accepted Gwak's argument last month, nearly four years later, and revoked the preservation for forfeiture ruling.
The court is understood to have taken into account that former lawmaker Gwak and Byeong-chae received, respectively, a dismissal of indictment and a not-guilty verdict at the first trial. Prosecutors have challenged the decision and filed a further appeal with the Supreme Court.
Gwak was indicted in Feb. 2022 on suspicion that he arranged for his son, Byeong-chae—who had worked at and left the company of Kim Man-bae, the major shareholder of Hwacheon Daeyu—in Apr. 2021 to receive 5 billion won (2.5 billion won after taxes) as severance and bonus. However, in Feb. 2023, the first trial acquitted him.
Prosecutors later indicted Byeong-chae again in Oct. of the same year on bribery charges, and returned former lawmaker Gwak to trial by applying a charge of violating the Act on Regulation and Punishment of Criminal Proceeds Concealment.
However, the Seoul Central District Court Criminal Division 23 (Presiding Judge Oh Se-yong) on Feb. 6 acquitted Byeong-chae of the bribery charge and dismissed the indictment in former lawmaker Gwak's case.
The court found that prosecutors' reindictment by applying new charges to overturn the existing not-guilty judgment constituted an abuse of the right to prosecute.