Government-Lone Star ISDS Ruling Document to Be Released Possibly by the End of This Month

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The ruling document for the international investment dispute settlement (ISDS·Investor-State Dispute Settlement) case between our government and the foreign private equity fund Lone Star is expected to be released as early as the end of this month.

According to the Ministry of Justice on the 21st, negotiations for the disclosure of the ruling document between the government and Lone Star have almost reached the final stage. The government holds the position that prompt disclosure of the ruling document is necessary to guarantee the public's right to know. Lone Star is also reported to have shown a positive response to this.

In November 2012, Lone Star filed an international arbitration with the International Centre for Settlement of Investment Disputes (ICSID) of the World Bank, claiming that the Korean government unfairly intervened in the sale process of Korea Exchange Bank, causing damages of $4.6795 billion (approximately 6.1 trillion KRW). The arbitration tribunal that heard the case ruled on the 31st of last month that the Korean government must pay $216.5 million (approximately 280 billion KRW, based on an exchange rate of 1,300 KRW/USD).

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