Hot Lone Star BIS Gate
A sudden raid by the prosecution on Lone Star, a private U.S. fund company, must affect the sales process of Korean Exchange Bank. The prosecution yesterday raided Lone Star in order to seize documents in its probe into alleged tax evasion and improper relations with Korean governmental officials. In addition, the company is also being examined for illegal transfer of funds abroad.
The prosecution’s investigation will focus on illegal transfers by Lone Star, BIS manipulation, improper relations between senior executives of Lone Star and former senior executives of Korean Exchange Bank, qualification procedures for considering Lone Star as a major stockholder, and illegal relations between Lone Star and financial broker Kim Jae Rok.
It is known that Lone Star was investigated in Japan with regard to tax evasion, but the Financial Supervisory Service of Korea didn’t censure it. A senior executive of KEB responded to the Korean government saying, “There are no other proper investment companies but Lone Star.” In the end, the Korean government accepted the request and gave a priority to Lone Star.
According to the prosecution, it will also investigate if there were any wrongdoings in the sales process of KEB to Lone Star. It is expected to make an estimated 4.5 trillion won in capital gains from the sale, without having to pay any tax to the South Korean government.
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 / 입력시간: 2006. 04.01. 09:17
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