Lone Star files appeal to invalidate KEB charges

A lawyer for LSF-KEB Holdings SCA, which holds Lone Star's stake in KEB, said the fund had not deliberately manipulated KEB unit’s stock prices.

Private equity fund Lone Star is to file a petition to void charges against it in South Korea as unconstitutional, its lawyers said on Thursday, in a move that will likely prolong its protracted $4.3 billion sale of a stake in Korea Exchange Bank.

The Seoul High Court started on Thursday hearing charges against Lone Star's former Seoul representative Paul Yoo and the U.S. private equity fund over stock manipulation charges in relation to a credit card unit of KEB after a ruling acquitting him was overturned by the Supreme Court.

The legal dispute has led the Korean financial regulators to delay a decision whether to approve a proposed sale of Lone Star's 51 percent stake to Hana Financial Group.

If Lone Star is found guilty it could be disbarred as the legal owner of the KEB stake.

In the court hearing, a lawyer for LSF-KEB Holdings SCA, a Belgium-based unit which holds Lone Star's stake in KEB, said the fund had not deliberately manipulated stock prices of the KEB unit.

A lawyer for Paul Yoo also said Yoo didn't conspire to manipulate stock prices, and asked the judge to reconsider the five-year jail sentence given in the previous ruling.

View the full story in Reuters.

Follow the link for more news on

Also Read

Cambodia enables QR payments from foreign e-wallets through Alipay+

Hong Kong to rename ‘virtual banks’ to ‘digital banks’

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit