Is this not the Korean bank that DBS was looking to buy ? Luckily they rejected our higher offer else there will be another controversial issue to talk about. Money in the bank, hehe is stll our money.
SKorean former top banker arrested over deal with US fund A former top South Korean banker has been arrested for alleged wrongdoing over the sale of his bank to US fund Lone Star three years ago, state prosecutors have said.
Lee Kang-Won, the former president of Korea Exchange Bank (KEB), was taken to a Seoul detention center overnight, the supreme prosecutor's office said.
A court late Monday had granted prosecutors an arrest warrant for Lee on suspicion of breach of trust and bribery offences.
State auditors said in June that KEB's value was intentionally underestimated by its then-executives but they cleared Lone Star of any wrongdoing in its acquisition of the bank.
Lone Star bought a 51 percent stake in KEB for 1.38 trillion won (1.45 billion dollars) in 2003. It has now signed an agreement with South Korea's top lender Kookmin Bank to sell a majority stake for a potentially huge profit but the sale has been delayed by the investigation.
The Dallas-based fund has denied any wrongdoing over the sale or subsequently, and said it is the victim of a politically motivated prosecution driven by hostility toward foreign investors.
The affair is being closely watched by other foreign investors amid concerns that nationalist feelings may undercut their welcome here.
Lee is also suspected of having received 1.98 billion won in bribes from subcontractors while in office, investigators said.
The former KEB chief, who has denied any wrongdoing, is the first person to be arrested over the 2003 deal.
Meanwhile, a court is due later Tuesday to rule on a prosecution application for the arrest of Lone Star vice chairman Ellis Short, Lone Star general counsel Michael Thompson and Yoo Hoe-Won, current head of Lone Star Advisors Korea.
The court Friday had refused to issue arrest warrants for them, citing lack of evidence of alleged stock manipulation, but prosecutors immediately resubmitted their request.
Prosecutors claim the US fund, after buying the main bank, acquired KEB's credit card company at a discounted price after spreading false rumors of a capital write-down.
Lone Star is also under a separate investigation for allegedly evading large sums in taxes and illegally transferring dollars abroad after the 2003 bank acquisition.
