S. Korean prosecution seeks 4-year jail term for Lotte Group Chairman

South Korean prosecutors on Thursday demanded a four-year jail term and a fine of 7 billion won ($6.44 million) for Lotte Group Chairman Shin Dong-bin over a bribery charge involving the corruption scandal that forced out former President Park Geun-hye from office early this year.

The prosecutors asked the court to hand down the heavy penalty, accusing Shin of paying a total of 7 billion won in bribes to K-Sports Foundation that is closely linked to Park’s long-time friend Choi Soon-sil, a figure that has been in the center of one of the country’s biggest political, corruption scandals.

The prosecutors also sought a 25-year jail term and a fine of 126.2 billion won for Choi, who was indicted last year on charges for abuse of power and fraud among others.

Chairman Shin was indicted in April for allegedly offering 7 billion won in bribes to K-Sports Foundation in exchange for government favor to renew a license to operate a duty free store in Seoul.

If Shin is convicted in the first trial next year, Lotte Group may have to close its duty free store in Lotte World Tower in Jamsil, southern Seoul, in less than a year after it reopened. The Korea Customs Service announced last year upon growing demand from the political circle to postpone its third round of bidding to give duty free store operating licenses that it would cancel Lotte Group’s license if Chairman Shin is convicted of bribery charges.

Lotte Group, meanwhile, is hoping that the charges would not be valid as it received back the 7 billion won from K-Sports Foundation. Shin also denied charges during trials.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]