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KEB union files injunction to block Hana’s deal with Lone Star

The labor union of Korea Exchange Bank filed a court injunction Monday to block U.S.-based Lone Star Funds’ plan to sell its controlling state in the bank to Hana Financial Group.

In its filing with Seoul Central Court, the unionized workers called for KEB executives named by Lone Star, including bank CEO Larry Klane, to suspend the scheduled share selling.

Lone Star signed a contract with Hana Financial in November in an attempt to dispose of its KEB shares before the financial watchdog announces the result of its probe whether the fund was eligible to become the majority shareholder of the bank in 2003, the union said.

They also said Hana Financial has weakness in competitiveness and financial structural system. “So the sale is aimed at only benefits of the majority shareholder (Lone Star) by undermining corporate value of KEB.”

Meanwhile, an NGO led by Hansung University Prof. Kim Sang-jo requested the prosecution investigate three former chairmen of the Financial Services Commission for neglecting the probe concerning Lone Star’s eligibility as the biggest shareholder of a local financial company.

They are Chin Dong-soo, Jun Kwang-woo and Kim Yong-duk. “They neglected their duties or abandoned them,” the Solidarity for Economic Reform said in its filing.

By Kim Yon-se (kys@heraldcorp.com)
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