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Court Denies Lone Star Warrant Request

Posted November. 09, 2006 07:09,   


The Court again rejected the prosecution’s request to issue arrest warrants on 3 Lone Star executives. Therefore, the prosecution delayed plans for further investigation for 2-3 financial supervisory institution officials to after next week. The prosecution said that it will file a third request for warrants, but not this week.

The prosecution made it clear that it would file another arrest warrant, and reinforce evidence on Paul Yoo, Lone Star Advisors Korea president.

The prosecutors found out that now Hyundai Marine & Fire Insurance Co., Ltd. President & CEO Ha Jong-sun received 2 billion won from Lone Star in 2003 when he worked at a law firm, and are investigating whether he used the money for lobbying politicians and government officials on behalf of Lone Star on its acquisition of KEB.

Ha is denying such allegations, saying, “It was a consultation fee.”

The court and the prosecution did not make any provocative remarks on the issue.

“Although we did our best, we are sincerely sorry to the people that we failed to persuade the court. Under the current legal system, we cannot but respect the court’s decision,” said Chae Dong-wook, the chief prosecutor. But he refuted the court’s grounds for rejection of the arrest warrants.

“We expect a more experienced judge to handle this case,” said the prosecution.

The court was also careful in responding. “I will announce my positions through an official judge,” said senior judge Lee, who rejected the second request for arrest warrants.

“A reasonable prosecution would not request an arrest warrant for the third time. There are other ways than arrests,” said Seoul Central District Court Senior Judge Lee Sang-hoon.

jefflee@donga.com verso@donga.com