Lone Star seeks annulment of ruling over dispute with South Korea

Lone Star Funds has sought the annulment of an international tribunal ruling ordering South Korea to pay damages of $216.5 million plus interest to the U.S. firm over the company's sale of Korea Exchange Bank, South Korea's justice ministry said. It was not immediately clear why the private equity firm sought annulment of the ruling, but it had expressed disappointment in the amount the International Centre for Settlement of Investment Disputes (ICSID) ordered Seoul to pay last year after it sought payment of $4.68 billion in a claim it filed in November 2012.

Lone Star Funds has sought the annulment of an international tribunal ruling ordering South Korea to pay damages of $216.5 million plus interest to the U.S. firm over the company's sale of Korea Exchange Bank, South Korea's justice ministry said.

It was not immediately clear why the private equity firm sought annulment of the ruling, but it had expressed disappointment in the amount the International Centre for Settlement of Investment Disputes (ICSID) ordered Seoul to pay last year after it sought payment of $4.68 billion in a claim it filed in November 2012. The company had accused Seoul of what it said was a long-delayed review process for the sale and unfair taxation, according to local media.

Lone Star was not immediately available for comment. South Korea's justice ministry said it was notified on Saturday by the World Bank Group organisation of Lone Star's decision. The ministry said Seoul will also file for annulment of the tribunal's order.

"The government, together with our legal representatives, is thoroughly reviewing details of Lone Star's request seeking annulment," the ministry said in a statement. South Korea has said the ICSID's ruling was unacceptable because the government was just and fair in handling the sale process.

Korea Exchange Bank has since been merged into Hana Bank.

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