Lehman's collapse is "unavoidable pain," S. Korean regulator says

SEOUL, Sept. 16 (Yonhap) -- The collapse of Lehman Brothers Holdings Inc., once the No. 4 investment bank in the United States, represented "unavoidable pain"; before the global financial markets enter a stage of stabilization, the head of South Korea's financial regulator said Tuesday.

"Unease in the global financial markets is likely to continue for the time
being," Jun Kwang-woo, the chief of South Korea's Financial Services
Commission, told reporters.

The demise of Lehman was an "unavoidable pain before the markets
stabilize," Jun said.

Jun added global credit worries related to U.S. subprime mortgage loans were
entering a second round of crisis, but recovery will be rapid once it begins.

South Korea's state-run Korea Development Bank had been in talks to buy a
controlling stake in Lehman, but the talks failed after Jun expressed concerns
over the Lehman buyout, calling it a risky investment.

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