Regulator says Texas buyout fund was eligible to own KEB until June 2006The Supreme Court ordered the Financial Services Commission to make public Lone Star Funds’ eligibility as the biggest shareholder of Korea Exchange Bank on Thursday.The FSC, which lost the original trial in 2007 and the second trial in 2009 in a lawsuit filed by Solidarity for Economic Reform, appealed to the highest court two years ago. The regulator has now lost its final case.The FSC and the Financial Supervisory Service

FSC might be ordered to decide on the fund’s shareholder eligibilityThe Supreme Court will deliver a verdict on a key issue regarding Lone Star Funds on Thursday, possibly forcing the Financial Services Commission to make public the fund’s eligibility as the biggest shareholder of Korea Exchange Bank.The FSC, which lost the original trial in 2007 and the second trial in 2009 in a lawsuit filed by Solidarity for Economic Reform, appealed to the highest court two years ago.Before the suit, the reg

Regulator expected to be ordered to reveal the fund’s bank shareholder eligibilityThe Supreme Court will deliver a verdict on a key issue regarding Lone Star Funds on Thursday, possibly forcing the Financial Services Commission to make public the fund’s eligibility as the biggest shareholder of Korea Exchange Bank.The FSC, which lost the original trial in 2007 and the second trial in 2009 in a lawsuit filed by Solidarity for Economic Reform, appealed to the highest court two years ago.Before the

Sales growth in No. 1 market could boost car exports to BRIC countriesThe auto sector is regarded as one of the few local industries to greatly benefit from the Korea-U.S. Free Trade Agreement.The FTA, which was recently ratified by both countries’ legislative bodies, is widely expected to push up Korean carmakers’ position in the world’s largest auto market.Experts predict that about 5,000 small and mid-sized Korean auto parts manufacturers will be able to expand their presence in the United St

Three of four major financial groups to own secondary banking unitKB Financial Group and Shinhan Financial Group are expected to take over major savings banks, as they won bidding competitions for the distressed sector.The state-run Korea Deposit Insurance Corp. said Tuesday that it selected Shinhan Financial Group as the preferred bidder for Tomato Savings Bank, the No. 2 player in the secondary banking sector.KB Financial Group has been picked as the preferred negotiator for Jeil Savings Bank.

Hyundai Motor has embarked on securing competitive sales networks in Germany and France, which account for 41 percent of the European automobile market.The automaker will take over wholesale distributors in Germany and France from Switzerland-based Emil Frey, as part of its strategy to enhance marketing and sales in Europe.The Hyundai Motor Group said Tuesday that Hyundai Motor Europe Corp. will acquire a 70 percent stake in a German dealership company from Emil Frey, the second-largest dealer g

The prosecution is expected to investigate Financial Services Commission Chairman Kim Seok-dong and seven other regulatory officials for their allegedly light action on Lone Star Funds.The Minbyun, or Lawyers for a Democratic Society, in coordination with the People’s Solidarity for Participatory Democracy filed a complaint with the prosecution against the eight FSC officials on Monday, citing their allegedly “neglecting duties” and “abusing authority.”The seven other FSC officials are vice chai

FSC to work closely with prosecution to weed out irregular lendingRegulators have decided to call for the prosecution or police to investigate financial industry employees engaged in irregular sales practices.Bank employees, who urge customers to buy other financial products in exchange for issuing loans could be subject to imprisonment under regulators’ coordination with the investigative agencies, the Financial Services Commission said Monday. While the figures engaged in the practices have be

The antitrust watchdog launched a probe into banks and credit card companies for possible manipulation in their service charges, industry sources confirmed Sunday, intensifying its push to slash fees further. The Fair Trade Commission is said to have launched their investigation into 17 local banks and more than 13 credit card firms to see if they conspired to fix prices to ease competition. Charged guilty, the case be a major blow to their balance sheet where the fines could add up to several h

South Korean stocks are forecast to move in a tight range next week as fiscal debt problems in Europe and the United States will weigh on investor sentiment, analysts here said Saturday.The benchmark Korea Composite Stock Price Index closed at 1,839.17 on Friday, down 1.27 percent from a week earlier.The market suffered ups and downs throughout the week, affected by news coming from the debt-ridden eurozone economy.Foreign investors sold a net 595.9 billion won ($523.2 million) worth of stocks h

Light action on Lone Star expected to invite series of protestsFinancial Services Commission Chairman Kim Seok-dong will likely be under heavier pressure to resign following regulators’ allegedly lukewarm action against Lone Star Funds last Friday.A group of lawmakers are poised to call for Kim to quit as the top regulator, criticizing the FSC for not taking stern measures on the U.S.-based equity fund.A group of unionized workers in the financial sector had already said Kim should leave the po

FSC paves the way for the country’s biggest banking takeover amid protestsKorea’s financial regulators on Friday paved the way for Lone Star Funds, convicted of stock manipulation, to take huge premiums from selling its stake in Korea Exchange Bank. The nine-member panel of the Financial Services Commission chose not to take stern action against the U.S.-based fund, ordering it to sell most of its KEB shares to any investor within six months. Under the decision, the fund is entitled to select an

Attention focused on whether stern measures will hit U.S. buyout fundThe nine-member panel of the Financial Services Commission is scheduled to unveil its measures against Lone Star Funds, convicted of stock rigging, on Friday.The members include FSC Chairman Kim Seok-dong, Financial Supervisory Service Gov. Kwon Hyouk-se, FSC Vice Chairman Choo Kyung-ho, Vice Finance Minister Shin Je-yoon, Korea Deposit Insurance Corp. president Lee Seung-woo, and Bank of Korea senior deputy Gov. Lee Ju-yeol. F

Bahk Byong-won, former presidential secretary for economic affairs, has been nominated chairman of Korea Federation of Banks.The KFB is poised to appoint the 59-year-old to the post at a decision-making meeting on Nov. 23.Bahk, who will replace current KFB chairman Shin Dong-kyu, worked as a senior aide to President Lee Myung-bak between 2008 and 2009 and was chairman of state-run Woori Financial Group between 2007 and 2008.He had mostly served in the government as a public official. Before work

The nine-member panel of the Financial Services Commission is scheduled to unveil its measures against Lone Star Funds, convicted of stock rigging, on Friday, which will possibly mark a historic event.The members include FSC chairman Kim Seok-dong, Financial Supervisory Service Gov. Kwon Hyouk-se, FSC vice chairman Choo Kyung-ho, Korea Deposit Insurance Corp. president Lee Seung-woo and Bank of Korea senior deputy Gov. Lee Ju-yeol.Kim clarified that the panel will decide on its action “according

Financial regulators plan to unveil Friday their stance on whether to punish Lone Star Funds for stock manipulation.The Financial Services Commission said Wednesday it would hold an extraordinary meeting, composed of a nine-member panel, on Nov. 18 to discuss detailed ways to order the fund to sell most of its stake in Korea Exchange Bank.The regulator’s meeting is drawing wide interest “in terms of abusing authority or not” as the Supreme Court has yet to rule on whether the FSC should make pub

An independent watchdog aimed at strengthening the rights of financial consumers will be set up during the first half of 2012, after a decision by the Financial Services Commission on Wednesday.At the nine-member panel discussion, the FSC decided to spin off the department in charge of consumer protection from the Financial Supervisory Service, an executive arm of the FSC.FSS Gov. Kwon Hyouk-se, who took his office as the top regulator in March, finalized the move for a larger consumer protectio

Carmaker projects exports to reach 63,169 units in Jan.-Oct. periodSsangyong Motor is projected to post record export performance this year, taking the lead in the growth of overseas sales among carmakers in Korea.The company saw its exports reach 63,169 units for the first 10 months of 2011, up 61.3 percent from 39,158 units over the corresponding period a year earlier.Company executives predict that exports per annum will come to 75,000 units this year. The carmaker’s current record-high figu

Lawmakers mount calls for reactivation of plan to sell government-held stakeFinancial authorities are expected to come up with a new plan soon to privatize state-owned Woori Financial Group as calls from politicians for resumption of the stalled sale plan are mounting, sources said Tuesday.Last week, some members of the National Policy Committee of the National Assembly called for Korea Deposit Insurance Corp., the biggest shareholder of Woori Financial, to draw up a new plan to sell most of its

Financial regulators’ planned action against Lone Star Funds is expected to affect the fate of Kim Seung-yu, the chairman of Hana Financial Group, which is seeking to acquire Korea Exchange Bank from the U.S.-based equity fund.Early this year, group board members allowed Kim, who had taken on the post of Hana Bank CEO or Hana Financial chairman since 1997, to extend his term for the top post by one more year until March 2012. The board members’ endorsement of the 68-year-old chairman’s tenure ex