Bar Association: "Responsibility Must Be Determined for Lone Star Dispute Causing Public Tax Expenditure"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The Korean Bar Association (KBA) has urged a clear determination of responsibility in the dispute between our government and Lone Star following the arbitration award issued by the International Centre for Settlement of Investment Disputes (ICSID).

In a statement released on the 2nd, the KBA emphasized, "As the Minister of Justice expressed, the government is in a position to spend at least 310 billion KRW of taxpayers' hard-earned money," adding, "Given that the actual winning rate on key issues is only about 62%, it is not a situation to be complacent by being misled by the figure that 95.4% of the claim amount was dismissed."

They continued, "The arbitral tribunal judged that the government unlawfully delayed approval of the sale," and pointed out, "The public cannot help but be puzzled by the fact that no one is legally or politically held accountable, including the former Director General of Financial Policy at the Ministry of Strategy and Finance, who was acquitted in the related criminal trial."

Furthermore, the KBA stated, "It is also necessary to reconsider whether the government's response after Lone Star's filing was appropriate," and added, "We must painfully accept the criticism that due to repeated misjudgments and mistakes by financial authorities, a case that could have been resolved easily was prolonged for 10 years, ultimately leading to acknowledgment of responsibility."

Earlier, the Lawyers for a Democratic Society (Minbyun) also issued a statement urging the government to disclose the arbitration award and clarify responsibility.

Song Ki-ho, former Chair of Minbyun's International Trade Committee, said on the same day, "The arbitration award will specifically state the actors and concrete acts that caused the state's liability for compensation," emphasizing, "The contents of the arbitration award indicating illegal involvement must be disclosed immediately, and instead of pursuing the nearly impossible annulment of the arbitration award, the application of breach of trust charges and responsibility issues for those illegally involved should be promptly reviewed."

This content was produced with the assistance of AI translation services.