About 5,000 unionized workers of Korea Exchange Bank are scheduled to hold a day-long rally in Yeouido, Seoul on Tuesday, demanding the financial regulator take punitive action against Lone Star Funds.
Their planned gathering has been regarded as a strike amid the situation under which Lone Star, convicted of manipulating stocks of KEB’s credit affiliate, may leave the country with huge gains.
The KEB union is also criticizing the Financial Services Commission for having been negligent in probing shareholder eligibility of the U.S.-based equity fund for several years.
Recently, more than 10 conservative organizations including Right Korea also argued that the regulator should probe the allegations that Lone Star was ineligible to control the Korean bank.
Rep. Hong Joon-pyo of the ruling Grand National Party was another one calling for strict action against the fund.
The FSC is moving to “simply” order the fund to dispose of most of its KEB stake following the stock rigging, which may pave the way for Hana Financial Group to take over the bank.
But the union has called for the regulator to order stake sale at stock market-determined prices to anonymous investors.
Following mounting pressure from a variety of parties to penalize Lone Star, an FSC official said it will take at least several more days for the FSC’s nine-member panel to reach a consensus on the issue.
The regulator, which has completed its month-long preliminary steps, including prior notification to Lone Star, is entitled to order the stake sale from Tuesday.
