By Park Si-soo
Staff Reporter
John Grayken, chairman of Lone Star Funds, left Seoul Thursday after undergoing a 10-day-long questioning by the prosecution.
In an e-mail statement issued right before his departure, Grayken said he had ``conscientiously cooperated'' with the investigation and would return to Seoul to be questioned, should the need arise.
The prosecution banned him from leaving the country since his arrival here on Jan. 9 to question him over alleged illegalities involving the company's acquisition of the Korea Exchange Bank (KEB) in 2003 and stock price manipulation of KEB's credit card unit.
It has also strived to verify whether the fund played a role in allegations that the government undervalued KEB when it sold the bank to the U.S. investment fund in 2003.
Meanwhile, prosecutors have shelved an indictment against the private equity firm head.
The Supreme Prosecutors' Office are still undecided whether to indict Grayken, Song Hae-eun, prosecution spokesman, told reporters.
During his visit to Seoul, Grayken took the stand as a defense witness for Paul Yoo, representative of Lone Star's Seoul office, denying the allegation that the company's Seoul representative had manipulated stock prices in 2003 to take over KEB's credit card unit at a price lower than market value.
Yoo has been indicted with physical detention on charges of intentionally driving down the stock price of KEB's credit card unit by spreading false rumors that a capital reduction of the unit was imminent.
Prosecutors sought a 10-year prison sentence for Yoo and also asked for a fine of 4.2 billion won for him. The Seoul Central District Court is expected to deliver a verdict on Yoo's case on Feb. 1.
In June 2007, Lone Star sold a 13.6 percent stake in KEB, but it still holds 51.02 percent of the bank.
The U.S.-based company has cancelled its attempts to sell the entire stake, as the Financial Supervisory Commission refused to approve any deal until the legal problem is resolved.
In its latest move in September, Lone Star signed a $6.3 billion contract with London-based HSBC Holdings to sell the 51.02 stake. The contract is valid until April.