S. Korea Seeks Prison for 14 in Corruption Trial

South Korean prosecutors Monday sought prison terms ranging from a year to 10 years for nine business leaders and five former political aides who are co-defendants in the corruption trial of former President Roh Tae Woo.

Prosecutors demanded a four-year sentence for Daewoo Group Chairman Kim Woo Choong, accused of giving Roh $19 million in bribes, and a three-year sentence for Samsung Group Chairman Lee Kun Hee, who allegedly gave the former president bribes of $12.6 million. Samsung and Daewoo are two of South Korea’s biggest conglomerates, accounting for a significant portion of the nation’s exports.

“This case clearly shows the collusion of power and business under past regimes,” a prosecutor told the court. “In order to eliminate these wrong practices, heavy punishment is inevitable. To demonstrate that all are equal before the law, former presidents and business leaders should be punished if they violate the law.”

A panel of judges hearing the case has yet to rule on the defendants’ guilt or innocence, and its decision on sentencing could be many months away.

Despite the severity of the recommendations, the belief remains widespread in Seoul that most, if not all, of the business tycoons who are convicted will receive suspended sentences, partly to ensure that there will not be any serious economic fallout from the trial.

As if to lend credence to this viewpoint, a spokesman for President Kim Young Sam announced late last week that the president will host a dinner meeting Wednesday for the chairmen of the nation’s 30 largest business conglomerates, including Samsung’s Lee, Daewoo’s Kim and several other defendants.

The purpose of the meeting, presidential spokesman Yoon Yeo Joon said, is to offer encouragement to the business community, which he said has been dispirited by Kim’s drive to “right the wrongs of history” by taking action against the misdeeds of his predecessors.

Business groups are expected to use the occasion of the dinner to report to the president on plans to give more help to small and medium-sized firms through such measures as improved payment terms.

Roh publicly confessed in October to having accumulated a $653-million slush fund during his 1988 to 1993 term in office, and the tycoon defendants acknowledged in court that they gave him money. Roh insists the funds were political donations; the business leaders have argued that they were a form of taxation.

“The defendants say the provision of money was unavoidable, but they willfully corrupted public servants to benefit themselves and win favors,” prosecutor Moon Yong Ho charged Monday.

Former President Chun Doo Hwan also faces corruption charges in a separate trial in connection with an alleged $900-million slush fund. Additional court action is pending against Chun and Roh, both former generals, for a 1979 mutiny and a 1980 massacre of pro-democracy demonstrators.

Prosecutors said they will wait until those cases near their conclusion before recommending what Roh’s sentence should be on corruption charges. Sentencing of business leaders on trial with Roh who are convicted would probably not occur until after Roh is sentenced, Korean media reported Monday.

The other business leaders on trial and the sentences urged by prosecutors are: Dong Ah Group Chairman Choi Won Sok, four years; Hanbo Group Chairman Chung Tae Soo, four years; Jinro Group Chairman Chang Jin Ho, three years; Dongbu Group Chairman Kim Joon Ki, two years; Daelim Group Chairman Lee Joon Yong, 18 months; Daeho Construction Chairman Lee Kon, 18 months; Daewoo Corp. Chairman Lee Kyung Hoon, one year. All are accused of bribery except for Lee Kyung Hoon, who is accused of money laundering.

The five former Roh aides accused of involvement in the slush fund, and their recommended sentences, are: Lee Hyun Woo, former chief bodyguard, 10 years’ imprisonment and a $775,000 fine; legislator and former Trade Minister Kum Jin Ho, six years; former presidential economic advisor Kim Jong In, five years; former banking official Lee Won Jo, five years; and former presidential accountant Lee Tae Jin, 18 months.

Chi Jung Nam of the Times’ Seoul Bureau contributed to this report.