Bloomberg News

Lone Star’s Former Korea Chief Yoo Appeals to Supreme Court

October 11, 2011

(Updates with court spokesman’s comment in second paragraph.)

Oct. 12 (Bloomberg) -- Paul Yoo, the former head of Lone Star Funds’ South Korean unit, appealed to the nation’s highest court against his conviction for stock-price manipulation and a three-year jail sentence.

Yoo filed the appeal at the Supreme Court of Korea on Oct. 10, Seoul High Court spokesman Oh Min Seok said by telephone today, confirming statements posted on the court’s website. The grounds for the appeal weren’t immediately provided.

The high court on Oct. 6 overturned a June 2008 acquittal for Yoo and Lone Star and fined the Dallas-based fund 25 billion won ($21 million) following a conviction on charges of stock- price manipulation. Lone Star will need to separately file an appeal by the end of tomorrow if the fund wants the Supreme Court to reconsider the lower court’s decision, Oh said.

Park Sang Il, an attorney for Yoo, confirmed that an appeal had been filed when reached by telephone today. Jed Repko, a spokesman for Lone Star, declined to comment on whether the fund will appeal and on Lone Star’s position on Yoo’s appeal, according to an e-mailed response to questions.

The high court began the retrial on June 16 after the Supreme Court asked it to reconsider whether Yoo, Korea Exchange Bank and Lone Star’s local unit broke stock trading rules. Judge Cho Kyung Ran last week said Yoo spread false rumors of a possible capital reduction at Korea Exchange Bank’s credit card unit in 2003, with the intention of driving down its value before the lender absorbed the unit. Lone Star had a 10 billion won gain from Yoo’s illegal activity, Cho said.

The high court last week said Korea Exchange Bank wasn’t guilty of manipulating the stock price.

--Editors: Chitra Somayaji, Brett Miller

To contact the reporter on this story: Seonjin Cha in Seoul at scha2@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net


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