Moon is also accused of lying under oath for denying the allegation during a parliamentary hearing in November.

The former minister was the first among dozens to be indicted by a special counsel who looked into the influence-peddling scandal that removed former President Park Geun-hye from office.

Special prosecutors said the presidential office was behind the controversial merger and indicted Park on charges of bribery.

Samsung's Lee is also standing trial over suspicions of giving kickbacks to Park's longtime friend Choi, and in effect to Park, in return for business favors.

On the same day, prosecutors also sought a seven-year term for Hong Wan-sun, who led the asset management division of the NPS, for inflicting losses to the state-run pension fund by approving the merger.

"It is a severe crime that damaged the pension fund's independence and gave the owner family of a conglomerate profits based on people's pocket money," a prosecution official told a court.

Both Moon and Hong are denying any legal wrongdoing. (Yonhap)