CHRONOLOGY-Key events related to KEB sale

SEOUL, March 5 (Reuters) - South Korea's anti-trust body, the
Fair Trade Commission, said on Wednesday HSBC Holdings Plc's
(HSBA.L) (0005.HK) $6.3 billion purchase of a majority stake in
Korea Exchange Bank (KEB) (004940.KS) would not hinder market
competition.

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Following are events since Lone Star bought 50.5 percent of
KEB for $1.2 billion in August 2003:

- Feb 28, 2004: KEB absorbs KEB Credit Service Co Ltd.
Prosecutors will later charge Lone Star of manipulating the stock
price of the card unit to buy it cheaper.

- April 19, 2006: Lone Star Chairman John Grayken tells a
news conference in Seoul that Steven Lee, former head of Lone
Star's South Korean operations, has been fired for
misappropriating funds and will be sued by the company.

- May 19, 2006: Kookmin Bank 060000.KS signs a deal worth
up to $7.3 billion to buy KEB from Lone Star and two other major
shareholders.

- June 19, 2006: The Board of Audit and Inspection says Lone
Star's 2003 purchase of KEB contained some flaws, but clears Lone
Star of any impropriety, while leaving the door open to possible
sanctions by prosecutors.

- Nov 20, 2006: South Korean prosecutors indict KEB and a
unit of Lone Star on charges of unfair stock trading.

- Nov 23, 2006: Lone Star says it will end the agreement to
sell KEB to Kookmin, citing the tussle with prosecutors.

- Dec 7, 2006: Prosecutors say Lone Star's purchase of KEB
was illegal, saying the fund colluded with the lender to inflate
the bank's losses, allowing Lone Star to pay around $900 million
less than KEB was worth.

- June 22, 2007: Lone Star sells a 13.6 percent stake in KEB,
and disposes of builder Kukdong Engineering and Construction and
leasing firm STARLease for a total $2.3 billion.

- Sept 3, 2007 - HSBC says it agreed to buy 51.02 percent of
KEB for $6.3 billion cash from Lone Star, but it did not intend
to make a tender offer to KEB's remaining shareholders.

- Jan. 24, 2008 - Grayken left South Korea after 10 days of
questioning by prosecutors and giving testimony to defend the
head of its South Korean operations, Paul Yoo, who was standing
trial on charges of stock manipulation.

- Feb. 1, 2008 - A Seoul court found Yoo guilty of
manipulating the stock price of the former KEB credit card unit
and sentenced him to five years in jail. Lone Star is appealing
the ruling.

- March 5, 2008 - South Korea's Fair Trade Commission ruled
HSBC's purchase of KEB would not hinder market competition. It
adds the final decision lies with the financial regulator.
(By Seoul Newsroom; editing by Ian Geoghegan and Keiron
Henderson)