This is starting to get interesting. Lone Star Funds, a private equity concern based in Dallas, has been under investigation by South Korean prosecutors since March. They say the fund conspired with Korea Exchange Bank and government officials to illegally lower the price of the bank to benefit Lone Star, which purchased the bank in 2003. Prosecutors are also looking into whether Lone Star helped manipulate the stock price of the bank's credit card unit. The fund says it is innocent and will defend itself vigorously. Several executives are wanted in South Korea. There may be a political element to all this--the notion of foreign investment firms buying up local assets has not played well in the country. The term "vulture capital" has been in vogue. Whether the charges are true or not, this will certainly chill the ardor of funds aiming to invest in South Korea. 

For more on this:
- Here's an AP update
- See how Citigroup's tied to all this. Article