Yoo's court victory boosts HSBC buyout plans

Loan Star Funds' ex-Korea chief Paul Yoo has been cleared of stock market manipulation by the Seoul High Court.

Paul Yoo's appeal against a previous guilty verdict for the illegal trading has now been upheld - meaning that he is no longer facing a prison term for malpractice.

It is thought that the verdict will boost the chances of Loan Star's proposed sale of its Korea Exchange Bank to HSBC.

The banking giant has already submitted a $6 billion bid for the firm, and the regulator must decide whether to block the deal, or allow it to go through, before July 31st.

Speaking to Bloomberg, Mo Jae Sung at Hanwha Investment Trust Management suggested that Mr Yoo's successful appeal would up the pressure on the watchdog.

"Regulators are running out of excuses for delaying the approval,'' he commented.

"It will still be a long process for the disputes to settle completely with appeals and HSBC can't wait around forever.''