State Street tipped to ally with major Korean fund administrator

State Street Bank may invest up to W2.5 billion ($2.2 million) in paid up capital to gain half ownership of the fund administration arm of Korea Exchange Bank (KEB), Korea's largest fund administrator, as early as the end of this year to position for the country's deregulating mutual fund industry.According to sources close to the talks, State Street's lawyers in Boston are currently going over the fine print of the 50:50 joint venture proposal. It is understood, however, KEB manageme…