No Seoul-searching

25 Aug 2008 By Richard Beales Follow @richardbeales1

The idea that stateowned Korea Development Bank would buy the embattled Wall Street investment firm was always farfetched. Now the bank s regulator seems to have scotched it. With the firm s quarterend approaching, Lehman boss Dick Fuld is still searching for answers.

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Jun Kwangwoo, chairman of the Korean Financial Services Commission, on Monday cautioned Korea Development Bank over its interest in Lehman Brothers, the Financial Times reported.

We welcome any efforts led by the private sector to go global, but it may not be proper for stateowned financial institutions to lead the role and take on excessive burdens, he said, according to the FT.

The newspaper reported last week that KDB had been in talks to buy 50% of Lehman but failed to reach agreement. Lehman shares rose on Friday on reports such a deal might still be possible.

KDB is set for a gradual privatisation over four years, but is currently owned by the Korean government.

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