Kang Man-soo, former chairman of South Korea’s state-run Korea Development Bank (KDB), was sentenced to four years in prison for charges of corruption and abuse of power in the first trial.

The Seoul Central District Court handed down four years in prison and 50 million won ($44,416) in fine to Kang on Friday for charges including bribery and power abuse. “Kang abused his power and authority to favor companies run by his acquaintances,” read the court. “He also doesn’t admit his wrongdoings and puts the blame on others despite the seriousness of the crime.”

During the former Lee Myung-bak administration when Kang served as the minister of Strategy and Finance and Special Advisor to the President for Economy, he wielded his power to force the finance ministry to select Biolsystems, a bio company headed by his friend, for a government-funded project that helped the company receive a subsidy of 6.67 billion won in December 2009.

Kang, however, was found not guilty on the charge of arm twisting to make former chief executive officer of Daewoo Shipbuilding & Marine Engineering Co. (DSME) Nam Sang-tae to invest in the biotech firm in return for overlooking irregularities committed by Nam.

Last summer, Korean special investigation team embarked on investigation on Kang, suspecting him of influence-peddling and favoritism for personal gains through his power over DSME which is under KDB. It is not immediately known whether Kang would appeal to higher courts following the decision by the lower court.

By Lee Hyun-jung

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