Lone Star Dispute Nears Final Judgment... Government "Ready for Immediate Response"

Koo Yoon-chul, Director of the Office for Government Policy Coordination
Photo by Yonhap News

[Sejong=Asia Economy Reporter Son Seon-hee] As the Lonestar ISDS (Investor-State Dispute Settlement) that has continued since 2012 approaches its final ruling, the government has begun preparing countermeasures.

On this day, Koo Yoon-chul, Director of the Office for Government Policy Coordination, held a Lonestar ISDS inter-ministerial meeting at the Government Complex Seoul in the afternoon to review the progress of the case and the government's response status. Officials from the Ministry of Justice, Financial Services Commission, Ministry of Economy and Finance, Ministry of Foreign Affairs, and National Tax Service attended the meeting.

The Office for Government Policy Coordination explained that the meeting was held to understand the progress of the case, including the timing of the ruling, as the Lonestar ISDS is now only left with the declaration of procedural closure and the final ruling, and to review and establish the government's response plan in preparation for the final ruling.

Lonestar attempted to sell Korea Exchange Bank to HSBC in September 2007, but the sale was canceled as the Korean government did not approve it, and eventually sold the bank to Hana Financial Group in 2012. However, claiming that the delay in sale caused the price to drop, Lonestar filed an ISDS lawsuit worth about 5 trillion won against the government in the same year.

The government has formed an International Investment Dispute Response Team led by the Director of the Legal Affairs Office of the Ministry of Justice to respond to this.

Director Koo urged, "As the Lonestar ISDS case, which has lasted for eight years, reaches its final phase, the government must be fully prepared and make every effort to respond immediately whenever the ruling is made."

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