In Brief: Morgan Settles with Korean Financial Firm

J.P. Morgan & Co., the fourth-largest U.S. bank, agreed to take a 10% stake in SK Securities Co., settling a $380 million lawsuit and ending more than a year of legal wrangling with several Korean financial institutions over derivatives losses, SK said. J.P. Morgan will invest $85 million in SK Securities by subscribing to the Korean company's imminent $250 million stock sale, which is partly aimed at raising money to pay SK's creditors. In exchange Morgan will get a 10% stake and an undisclosed cash payment. The suit stemmed from derivatives contracts Morgan had entered with several Korean financial firms.

The agreement will end legal disputes between J.P. Morgan and SK Securities, Housing and Commercial Bank, Daehan Investment Trust Co., and Korea Investment Trust Co. The only outstanding dispute -- for more than $100 million -- yet to be settled is with Boram Bank, which was taken over by Hana Bank in January.