Korea Exchange Bank executive under surveillance in deal speculation

| May 4, 2005 | 0 Comments
Korea Exchange Bank executive  under surveillance in deal speculation

Cameras and listening devices have been found secreted in the walls of the office of the Korea Exchange Bank’s chief executive. KEB is Korea’s fifth-largest lender and is controlled by U.S. private equity fund Lone Star.

The cameras and microphones were found last month as the office was being redecorated for the new president and chief executive of the bank. A computer to transmit results of the spying was also found.

A senior executive, who told management that the devices had been installed for the new executive’s security, was suspended and it is said that he will be leaving the company soon.

It was suggested that the devices might have been installed to gather information about the sale of the bank which is expected to begin later in the year, after the period in which Lone Star cannot sell the bank expires.

Additionally, Lone Star is one of two foreign companies currently being investigated by the South KoreanTax office for possible tax avoidance after the 1997 Asian financial crisis.

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