Prosecutors investigating the allegation of development of Daejang-dong have requested an arrest warrant for former lawmaker Kwak Sang-do. Kwak's son received 5 billion won from the Daejang-dong development company in the name of severance pay.

Reporter Hong Young-jae on the sidewalk.

<Reporter> The charge that the

prosecution applied to the arrest warrant for former lawmaker Kwak Sang-do is a mediation under the Specific Economic Crimes Aggravated Punishment Act.

In 2015, when Seongnam Urban Development Corporation selected a development company for Daejang-dong, the Hana Bank consortium in which Hwacheon Daewoo owner Kim Man-bae participated almost collapsed, but former lawmaker Kwak helped.

Prosecutors said that former lawmaker Kwak, through his university alumnus Kim Jung-tae, chairman of Hana Financial Group, asked for the consortium not to be dissolved. It is believed that he gave 5 billion won in the name of severance pay, etc.

It is known that former lawmaker Kwak was included in the so-called '5 billion promise club' that Kim Man-bae delivered or promised money, mentioned in the transcript of accountant Jeong Young-hak.

After investigating former lawmaker Kwak once as a suspect last weekend, the prosecution immediately threw the game of requesting an arrest warrant.

Former lawmaker Kwak, who resigned as a member of the National Assembly after allegations of his son's severance pay surfaced, denies the charges, saying, "I did not do anything related to the Daejang-dong development project or Hwacheon Daeyu, and I am not involved in anything."

The substantive examination of the arrest warrant for former lawmaker Kwak Sang-do will be held tomorrow (1st) at 10:30 am at the Seoul Central District Court.