South Korea ordered to pay Lone Star US$216.5m in dispute over bank sale

AN international tribunal has ordered the South Korean government to pay Lone Star Funds US$216.5 million plus interest in a long-running dispute over the US private equity firm’s sale of Korea Exchange Bank.

The damages awarded by the International Centre for Settlement of Investment Disputes, however, represents just 4.6 per cent of US$4.68 billion Lone Star had sought in compensation, South Korea’s Justice Ministry said in a statement.

The ministry added it was analysing the verdict and considering its next steps.

Lone Star filed the complaint in November 2012. It had sought compensation for what it said was a long-delayed review process for the sale and unfair taxation, according to local media.

Reuters was not immediately able to reach a Lone Star representative for comment.

Korea Exchange Bank has since been merged into Hana Bank. REUTERS