In May, he received a four-year jail term by the lower court. He was ordered to forfeit 90 million won and pay 50 million won in fines. The appellate court lowered the amount of the additional charge to 80 million won, while retaining the amount of the fine.

The court overturned the previous ruling and found him guilty of coaxing Nam Sang-tae, then CEO of Daewoo Shipbuilding & Marine Engineering Co., into investing big in his friend's company in return for exerting influence for Nam when he was implicated in a massive accounting fraud scandal that broke out at the shipbuilder.

Prosecutors indicted Kang late last year. The KDB is the largest shareholder of Daewoo Shipbuilding.

The appeals court also convicted him of coercing two brokerage firms into paying donations to seven conservative lawmakers in 2012, a charge that was cleared by the lower court.

The court berated Kang for not admitting to his guilt and continuing to make excuses in breach of his duty to maintain fairness and responsibility as a high-profile public figure. 

"Most of the state funds have not been recouped and the damage is substantial. And yet (the defendant) is denying the liabilities by saying that they were fair decisions made within the boundary of his power for business purposes," the court said.

Kang also served as presidential economic adviser and chief of a presidential committee on industrial promotion between 2009 and 2011 before leading the state-run bank until 2013. (Yonhap)