Prosecutors previously sought a 15-year prison sentence and a 23.35 trillion won (US$0.024) fine for Kim and called for a heavy penalty, asserting he was responsible for the collapse of the conglomerate in 1999, which also severely damaged the nation's economy.

The government was forced to spend 30 trillion won (US$0.031 trillion) in taxpayers' money to save Daewoo companies, prosecutors said Tuesday.

Prosecutors had planned to seek a life sentence for Kim, but reduced it due to Kim's poor health and his contribution to the nation's economic growth, they said.

Daewoo Group, once the country's second-largest conglomerate, collapsed in 1999 under heavy debts of US$80 billion after the Asian financial crisis. Kim fled the country that year and lived mostly in France before returning home last June. He was arrested upon his arrival in Seoul.

The former fugitive was indicted with 11 charges that included accounting fraud involving 20 trillion won (US$0.021 trillion) and fixing company documents to get 9.8 trillion won (US$0.010 trillion) in illicit lending from banks.

Kim is also accused of directing his executives to smuggle 4 trillion won (US$0.004 trillion) in slush funds overseas between 1997 and 1998 after falsifying import-export transaction documents.

Eight former Daewoo executives pleaded guilty in April 2005 for their involvement in the illicit activities, and are currently either in jail or on probation. Executives include Kang Byung-ho, a former senior executive of Daewoo, who received a five-year prison sentence.