|
Lone Star has made a sudden U-turn over investigations by Korean prosecutors and auditors into a range of allegations against the offshore investment firm. Lone Star Funds chairman John Grayken on Tuesday told a press conference in the world¡¯s financial hub New York that the Korean government¡¯s plan to tax the hedge fund on its profits from selling Korea Exchange bank was inconsistent with international regulations. He also called for the ongoing probe into a plethora of irregularities including doubts over the original sale of KEB to Lone Star to be conducted ¡°fairly.¡±
At a press conference in Seoul about a month ago, Grayken promised the fund would deposit W725 billion (US $725 million) in escrow in anticipation of due taxes, indicating he would cooperate with the investigation. But Tuesday¡¯s 40-minute press conference was peppered with complaints about the ¡°anti-foreign political climate¡± in Korea and ¡°absurd arguments¡± by officials here. ¡°This is the first time Grayken has criticized the Korean government so strongly,¡± a Lone Star staffer who was at the event said.
 |
|
Lone Star Chairman John Grayken listens to a question during a press conference in Seoul on April 19. /AP
|
 |
|
Pundits speculate Lone Star intends to pressure the Korean government by seeking maximum exposure in the international press, thus diluting the force of the investigation and cutting the amount of tax the government feels it can charge. ¡°Lone Star thinks its plan to sell KEB is actually complete by concluding the share purchase agreement with Kookmin Bank and is trying to stir up U.S. public opinion to hinder investigations,¡± says the KEB trade union.
A Korea Institute of Finance staffer speculates Lone Star has realized that it cannot achieve its purpose through inter-governmental channels since Korea-U.S. relations are not as cozy as they used to be.¡°So it seems the fund decided on hand-to-hand combat to resolve the matter,¡± he said. ¡°I read the transcript of what the chairman said at the press conference but couldn¡¯t exactly figure out what he was trying to say,¡± Vice Finance Minister Chin Dong-soo said. He insisted Korea was ¡°committed to creating an environment where foreign capital receives fair treatment regardless of its nationality and competes on an equal footing just like its domestic counterparts.¡±
A Finance Ministry official said taxing Lone Star is just about the fund itself, and the issue should not be blown up to include all the other foreign capital working here. ¡°Lone Star is trying to solve the problem it faces in an absurd way,¡± the official added. Choi Han-soo, the head of the civic group People¡¯s Solidarity for Participatory Democracy¡¯s economic center said if Lone Star ¡°intends to weaken the investigations by making them an issue of political concern, it is behaving in very inappropriately.¡±
(englishnews@chosun.com )
|
