The prosecution is seeking a six-month prison term for Roh Jeong-yeon, the daughter of the late President Roh Moo-hyun, on charges of converting a huge sum of money into U.S. dollars and illegally sending it overseas buy an apartment in New Jersey in 2009.
In a hearing at the Seoul Central District Court in southern Seoul on Wednesday, prosecutors claimed that the defendant, 37, also violated the Foreign Exchange Law by converting the money through underground brokers.
She was indicted in August for changing 1.3 billion won ($1 million at that time) into dollars through a middleman and transferring it to a Korean-American lawyer who was selling a New Jersey apartment in a building called the Hudson Club.
Investigators concluded the money was the last installment for the purchase of the luxury apartment.
The lawyer, Gyeong Yeon-hee, 43, was subject to a summary indictment by prosecutors on the same charge, because both parties of the deal are subject to punishment in illegal foreign transfer cases.
Prosecutors didn’t bring charges against former first lady Kwon Yang-sook, who gave the 1.3 billion won to her daughter.
Kwon earlier stated that she had received the money from acquaintances who visited Cheong Wa Dae during Roh’s term and their retirement residence in Bongha Village, South Gyeongsang Province, afterwards.
The former first family claimed acquaintances raised the money for them. The prosecution wrapped up the investigation without finding the ultimate source of the money
However, civic groups claim the money was linked to a slush fund created by the former president who committed suicide in May 2009.