They upheld a six-month suspended jail term and fine of 114 million won (£64,000/$102,000) on charges of receiving illegal political funds from two businessmen between 2004 and 2008.

Under the current election law in South Korea, a confirmed jail term or a fine of more than 1 million won results in the nullification of Parliamentary and elected officials' seats and disqualifies them from running for a public office for the next ten years.

The 46-year-old Lee, once was a right-hand man of the late former President Roh Moo-hyun, had been indicted in 2009 on charges of receiving illegal political funds.

He was charged of receiving $120,000 and 20 million won ($16,000) from a key Roh patron, Park Yeon-cha and of receiving $20,000 from former Nonghyup chairman Chung Dae-kun in 2006.

Lee was elected the Governor of Gangwon in the country's local elections last June had been temporarily suspended from executing his duties pending court ruling on the bribery charges.

He was reinstated after the Constitutional Court said he could assume the duties as Governor following a petition signed by 300,000 people calling for him to be allowed to take-up his post.

Lee had travelled extensively on behalf of Pyeongchang's bid, including to Acapaulco last October to attend the Association of National Olympic Committees (ANOC), where he met several International Olympic Committee members.

Pyeongchang officials tried to play down the impact of the decision on their bid.

Yang Ho Cho, the chairman and chief executive of Pyeongchang 2018, said: "The Pyeongchang 2018 Bid Committee fully respects the due legal process and the decision made by the Supreme Court in relation to Governor Lee.

"We appreciate the support he has shown towards the bid up to now.

"Vice Governor Ki Chang Kang has reaffirmed the Province's dedicated support for Pyeongchang's bid.

"We are grateful to the committed efforts of Gangwon Province to help bring the Winter Games to Korea for the first time and make them a wonderful success in 2018."

But the decision will focus unwanted attention on Pyeongchang's bid ahead of the visit of International Olympic Committee (IOC) Evaluation Commission, which is due to begin on February 16.

Cho, however, claimed that the campaign will survive the loss of Lee.

He said: "As a matter of national priority, the bid campaign is a team effort that is not dependant on one or two individuals, and we are all working together systematically.

"Pyeongchang 2018 will proactively continue our bid activities under the leadership of the bid chairman and with the Government's strong backing.

"We now look forward to welcoming the International Olympic Committee Evaluation Commission to Pyeongchang in February."

Lee, who worked as Presidential secretary for information and policy monitoring in the Roh Blue House in 2003, served two terms as a Democratic Party lawmaker representing Gangwon from 2004.

He gave up his National Assembly seat to run for Gangwon Governor on the Democratic Party ticket despite the bribery allegations and was elected to replace the popular Jin-sun Kim, who retired.

The Democratic Party has criticised the decision.

More follows

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