There has been a lot of chatter that Lehman is in talks with the Korea Development Bank and other suitors for a much needed investment:

• Korean Bank Help for Lehman Appears In Doubt
  State-controlled Korea Development Bank (KDB) is in talks with Lehman over a possible joint investment with other Korean banks, but said it was still unsure whether there would be a deal.
• Korea military fund may back Lehman bid
  South Korea’s Military Mutual Aid Association, a military pension fund, said on Wednesday it might consider making a joint investment in Lehman Brothers with state-run Korea Development Bank.

What strikes me is this: has anyone been paying attention to what the local Korean stock market have been performing like? What affect might this have on the rest of the global markets?

• IMF Says Korea Can Cushion External Shock
  A number of foreign banks and global economic organizations, including the International Monetary Fund (IMF), have discounted widespread rumors about a September crisis for Korea, stressing that the country is now in much better shape than 1997.
• Kim Says Fears of South Korea Crisis Are ‘Groundless’
  Fears that South Korea is facing a financial crisis are “groundless,” Vice Finance Minister Kim Dong Soo said after a government meeting called in response to the slump in stocks, bonds and the currency.
• Net Assets of Equity Funds Fall to 11-Month Low
  The net asset value of equity funds, including both domestic and overseas, plunged to their lowest level in 11 months, amid a bearish run on the stock market.
• Korea Won’t Face Repeat of 1997 Crisis, Moody’s Says
  South Korea won’t face a repeat of the 1997 currency collapse because local banks and companies have more robust finances, Moody’s Investors Service said.
• Vulnerable Won
  The South Korean won could weaken further, forecasts Dariusz Kowalczyk, chief investment strategist at CFC Seymour.