[News Figures] Steven Lee, Key to Lone Star's Embezzlement, Arrested in the US

'Steven Lee (54·Lee Jeonghwan)' is identified as the main culprit in the so-called 'Lonestar Eat-and-Run' case, where the US-based private equity firm Lonestar acquired Korea Exchange Bank at a low price through political and governmental lobbying in 2003, pocketed a large difference, resold it, and then withdrew from Korea.

Steven Lee was arrested on the 2nd of this month (local time) in New Jersey, USA, through cooperation between the Ministry of Justice and US authorities. This is the first time Steven Lee has been caught by US authorities in 17 years since the Korean Ministry of Justice requested his extradition in 2006.

Steven Lee served as the head of Lonestar Korea branch from 1998 when Lonestar established its branch in Korea, and is known to have discussed detailed contract matters closely with Korean policy officials and financial sector figures during Lonestar’s acquisition and sale of Korea Exchange Bank.

Although the prosecution launched an investigation in 2006 following complaints from civic groups and the National Assembly, Steven Lee had already fled to the US in September 2005, preventing a thorough investigation of the allegations. Consequently, the prosecution suspended charges against Steven Lee in 2006 and requested his extradition from the US, but the process was prolonged without results.

Lone Star logo.
Photo by Asia Economy DB

At that time, the prosecution announced that Steven Lee was suspected of breach of trust in the illegal sale of Korea Exchange Bank, manipulation of returns, tax evasion, and embezzlement. In September 2010, the Supreme Court ruled that Steven Lee embezzled about 5 billion KRW from Lonestar Korea and must pay 7.8 billion KRW in comprehensive income tax.

Steven Lee was arrested by Interpol in Italy in August 2017, 12 years after fleeing, but was released by a decision of the local Milan court.

Last year, the Ministry of Justice began a full review of the Lonestar case and held a high-level delegation meeting with the US side and Vice Minister Inogong at the 'Asia-Pacific Criminal Justice Forum' held in Japan in February this year. At this meeting, the Ministry of Justice provided information about Steven Lee’s residence in the US to the US authorities, based on which the US Federal Prosecutor’s Office in New Jersey arrested Steven Lee. The Ministry of Justice plans to cooperate with the US side to proceed with Steven Lee’s extradition trial and expedite his repatriation.

This content was produced with the assistance of AI translation services.