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Prime Minister Kim Min-seok (left) gives an emergency briefing at the Government Complex Seoul on Nov. 18 regarding Korea’s request to annul the Lone Star ISDS ruling. Behind him is Justice Minister Jeong Seong-ho. (Photo: Yonhap News) |
[Alpha Biz= Kim Jisun] SEOUL, November 18 — The Korean government has won its annulment case against the International Centre for Settlement of Investment Disputes (ICSID) ruling related to the Lone Star–Korea Exchange Bank sale dispute.
Prime Minister Kim Min-seok announced that the ICSID annulment committee in Washington, D.C., has ruled in favor of the Republic of Korea, fully canceling the 2022 arbitration award that had ordered Korea to pay $216.5 million plus interest to Lone Star.
As a result, the government’s previously recognized liability—worth approximately KRW 400 billion at current exchange rates—has been retroactively extinguished.
The committee also ordered Lone Star to reimburse Korea for KRW 7.3 billion in legal costs within 30 days.
Lone Star had filed the ISDS claim in 2012, alleging that Korean government actions during the sale of Korea Exchange Bank caused losses amounting to $4.68 billion. ICSID initially awarded Lone Star 4.6% of its claim in 2022, but both parties later sought corrections and annulments, ultimately leading to today’s decision.
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
