assessed as 6.16% as of July 25, 2003. Based on the report, the Financial Supervisory Service approved the acquisition. Hence, Lone Star Funds was able to acquire the bank at the price of about 1.3 billion dollars as of October 2003. However, after the acquisition, as the stock price of Korea Exchange Bank rose, Lone Star got about $1 billion of an appraisal profit within 3 months. Therefore, in the National Assembly inspection of 2005, is arisen the suspicion that Korea Exchange Bank was sold at a significantly lower price than its fair market value because BIS ratio was assessed with the pessimistic scenario, given that KEB's BIS ratio had been assessed between 8.24% and 9.14% according to the three reports written between May 17, 2003, and July 16, 2003. Thus, the National Assembly ordered the Board of Audit and Inspection to investigate the suspicion. In June 2006, the Board concluded that the BIS ratio of 6.16% was assessed as unreasonably low under the unrealistically pessimistic scenario. Following the conclusion of the Board of Audit and Inspection, in November 2006, the prosecution started an investigation on the issue and prosecuted Kang-won Lee, the former president of Korea Exchange Bank, for breach of duty. In November 2008, the trial court ruled for Lee, and the verdict did not change in both appellate court and the Supreme Court. Issues regarding the sale From January 2006, Lone Star Funds pursued the sale of KEB. However, during the period, there were ongoing investigations and trials regarding KEB, and thus South Korea's financial regulators did not approve each attempt. The disapproval was because the potential possibility of Lone Star's invalid ownership depending on the results of the trial. In September 2007, Lone Star Funds and HSBC had a preliminary agreement for the sale of KEB. However, the Financial Services Commission was still holding off the approval. After the 2008 global financial crisis, on September 19, 2008, HSBC gave up the acquisition of KEB. Eventually, on February 9, 2012, Lone Star Funds were forced to sell the KEB to Hana Financial Group due to the guilty verdict from the Korea Exchange Bank Credit Service stock manipulation case. On November 22, 2012, Lone Star brought arbitration against South Korea before the International Center for Settlement of Investment Disputes (ICSID). Lone Star Funds alleged the Korean regulatory authorities' failures to approve the purchase by third parties of claimant's