ICSID Nullifies $216.5 Million Ruling Against South Korea

The International Centre for Settlement of Investment Disputes (ICSID) has overturned its 2022 decision ordering South Korea to pay Lone Star Funds $216.5 million plus interest. The tribunal has also demanded Lone Star cover South Korea's litigation costs. Lone Star intends to revisit the case with a new tribunal.

The International Centre for Settlement of Investment Disputes (ICSID) has nullified its 2022 ruling that required the South Korean government to compensate $216.5 million to Lone Star Funds over its sale of Korea Exchange Bank. This development was announced by Prime Minister Kim Min-seok.

As part of the new ruling, the tribunal has instructed Lone Star Funds to reimburse the South Korean government for its litigation expenses, amounting to approximately 7.3 billion won ($4.99 million), within a 30-day period. Both parties had sought annulment of the previous decision earlier in 2023.

The private equity firm, Lone Star, expressed disappointment with the annulment, indicating dissatisfaction over the payout ordered by ICSID, which was far less than the $4.68 billion originally claimed. A spokesperson stated their intention to present the case again, confident that a new tribunal will rule in their favor.

(With inputs from agencies.)