The South Korean government has successfully overturned a $216.5m damages ruling in its long-running dispute with US private equity firm Lone Star Funds over the 2003 sale of Korea Exchange Bank (KEB), according to a report by Reuters.
The International Centre for Settlement of Investment Disputes (ICSID) nullified its 2022 award, also ordering Lone Star to cover Seoul’s litigation costs of approximately $5m. The move marks a major victory for the South Korean authorities, who had sought annulment alongside Lone Star in 2023.
Lone Star, which originally sought $4.68bn in compensation, expressed disappointment at the ruling and signalled plans to pursue its claims before a new tribunal. The firm maintains that Korean regulators interfered with its sale of KEB, potentially impacting returns on the multi-year investment.
