Seoul, June 2: A South Korean court on Monday handed lengthy jail sentences to the founder of the Hanbo Group and nine others, including lawmakers and former top bankers, in a corruption scandal that has rocked the nation.

The founder of the country's 14th largest business conglomerate, Chung Tae-soo, was jailed for 15 years and his son Chung Bo-keun, three years for bribery and embezzlement.

Chung junior is Hanbo's current chairman.

The court heard evidence that Hanbo's 74-year-old patriarch handed out huge sums of cash hidden in apple crates to politicians and bankers to keep loans rolling in to the group's steelmaking flagship, which collapsed in January under debts of five trillion won ($5.6 billion).

A total of 11 people were standing trial in the Seoul District Criminal Court in a case that has deeply embarrassed President Kim Young-sam, and led to the arrest of his son. Among those jailed were several of Kim's closest aides.

Hanbo's former financial controller was given a 2-1/2 year jail term suspended for four years.

"Your wrongdoing has caused a great shock to the Korean people, harm to the country's economy and chaos in society," chief judge Son Ji-yol told the ailing Chung Tae-soo, who entered the court supported by a prison officer.Former home affairs Minister Kim Woo-suk was jailed for four years.Among the lawmakers, Hong In-gil of the ruling New Korea Party received the heaviest punishment with a seven-year jail sentence.

Two other ruling party lawmakers, Hwang Byung-tai and Chung Jae-chull, were both jailed for three years.

Another member of the national assembly, Kwon Roh-kap of the main opposition National Congress for New Politics, was handed a five-year prison term.Two former presidents of Korea First Bank, Sheen Kwang-shik and Rhee Chul-soo, were jailed for four years and five years respectively for accepting bribes. The bank was the largest creditor to Hanbo Steel.The one-time president of Chohung Bank, Woo Chan-mok, was jailed for four years."This case has caused great suffering to our society and economy and now we must view it as a lesson of history," judge Son said before sentencing.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.