U.S. investment fund Lone Star Wednesday apologized for failing to cooperate with the Korean tax authority’s recent tax evasion probe.
According to an official of the National Tax Service (NTS), Lone Star vice chairman Ellis Short, who also serves as outside director of the Korea Exchange Bank (KEB), visited the agency in Seoul.

Lone Star ``deeply apologizes’’ for not cooperating with the NTS’ investigation, refusing to turn in documents requested by the tax authority, Short was quoted as saying.

Short added that the U.S. investment fund would no longer appeal against back taxes and fines imposed on it by the NTS and pay them in full, an NTS official said. He also expressed his intention to actively cooperate with the NTS in the future.

Lone Star was among five foreign funds that have been investigated by the tax agency. The five foreign funds were fined a total of 215 billion won in penalties last September for dodging taxes. Lone Star reportedly faced the largest, 140 billion won fine.

The NTS declined to give official comment, neither confirming nor denying Short’s visit to the agency, but Short’s signature was found in the NTS headquarters’ visitor’s book.

Lone Star, which owns a 51 percent stake in the KEB, reportedly plans to sell its shares in the commercial bank, with Kookmin Bank and Hana Bank declaring their intent to take over the smaller rival.

sjkim@koreatimes.co.kr