Mumbai: Prosecutors at a South Korean court have demanded a seven-year jail term for former Samsung chairman Lee Kun-hee for tax evasion and other charges, saying the heads of the country's powerful 'chaebols' should not be immune to the process of law. They also demanded that Lee, who was forced to resign as head of the Samsung Group, be fined 350 billion won ($350 million).

Lee's attorneys denied the charges and sought leniency considering the contributions of Samsung and Lee to South Korea's economic development.

The court will pronounce its sentence next week after reviewing the prosecution's demand.

Tax evasion carries a possible sentence from five years to life in prison, but judges have the discretion.

Considering that South Korean judges have repeatedly refused to hand down prison sentences in other such high-profile corporate cases, it is unlikely that the 66-year-old Lee will spend any time inside prison.

Prosecutors started probe against Lee and Samsung following allegations by a former company lawyer that Samsung created a large slush fund to bribe prosecutors, officials and other influential figures.

In April, prosecutors found 4.5 trillion won ($4.5 billion) of Lee's personal assets under borrowed names and indicted him for evading taxes worth 112.8 trillion won ($112 million). Lee was also charged with failing to report to the securities authorities changes in the ownership of his stock assets.

Lee was indicted for evading taxes, breach of trust and violating the securities exchange law after a three-month probe into his family-run company. Prosecutors, however, said there was not enough evidence to make a bribery case.

His breach of trust charge included dubious financial transactions to transfer corporate control to his son, including sale of bonds convertible to shares to his children at below-market prices.

Nine other current and former Samsung executives were also indicted in the special probe.

Lee, who had been one of the country's most powerful businessmen, resigned in April to take responsibility for his alleged wrongdoing.

The Samsung Group, founded by Lee's father has interests in electronics, shipbuilding, construction and life insurance. Samsung-affiliated firms accounted for an estimated 20 per cent of South Korea's exports.