Prosecutors Seek Arrest of Lone Star Executives Ex-KEB President 'Faces Arrest' in Sale to Lone Star Court Refuses Arrest Warrants for Lone Star Execs Prosecutors Furious at Rejection of Arrest Warrants Prosecutors Insist There's Evidence Against Lone Star Ex-KEB Chief Arrested Over Sale to Lone Star All Sides in Lone Star Probe Must Grow Up Hyundai Insurance CEO in Lone Star Bribery Allegations Prosecutors 'Have Fresh Evidence on Lone Star Execs' Arrest Warrants for Absent Lone Star Execs Chief Justice 'Can't Remember' Meeting Lone Star Bigwig Prosecutors Call Court's Bluff Over Lone Star Bigwig Lone Star Threatens to Leave Kookmin in the Cold Lone Star Scraps KEB Sale to Kookmin Lone Star Is Trying to Lean on the Law KEB Sale to to Lone Star Could Be Voided Prosecutors Indict Suspects in KEB Sale to Lone Star Findings in Controversial KEB Probe Announced Who Was in Charge of the KEB Sale? KEB Chief in Tokyo Meeting With Lone Star Bigwigs

The Financial Supervisory Service suspects that executives with Korea Exchange Bank manipulated the stock price of KEB Credit Services during their merger in 2003. If that is proved to have happened at the bidding of Lone Star, it would wreak havoc in the offshore investment firm’s plans to sell KEB since it would forfeit its status as largest shareholder in the bank.

“Our investigation into KEB’s stock price manipulation will be concluded by the Securities and Futures Commission meeting on September 29,” a senior FSS official said Thursday. “We think it is possible that KEB executives manipulated stock prices by mentioning a possible capital reduction of the bank’s credit card unit, which did not take place, but it is the prosecutors’ job to prove that KEB’s largest shareholder Lone Star intentionally manipulated KEB’s stock prices.”

If the FSS concludes that KEB was involved in stock price manipulation at the meeting, it would hand over related documents to prosecutors.

(englishnews@chosun.com )