S Korea raids KEB over sale worry

South Korean prosecutors have raided the offices of Korea Exchange Bank (KEB) as part of a probe dating back to its 2003 sale to a US investment fund.

The probe is looking into allegations that KEB figures were manipulated so it could be sold quickly and cheaply.

Lone Star Funds bought KEB for 1.4 trillion won (£802m; $1.2bn) in 2003, and is currently in the process of selling it on for 6.95 trillion won.

Lone Star, a top buyout fund in South Korea, has denied any wrongdoing.

Prosecutors said that the raid was carried out by 30 officials “in order to secure information concerning the sale of KEB”.

Documents were seized, they added.