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Analysis South Korea escapes Lone Star liability, but not the risk of lawsuitsDespite annulment of $273M payout, Seoul still faces task of improving regulatory clarity to attract foreign investors The annulment of the Lone Star arbitration ruling removes a multimillion-dollar fiscal burden for Seoul, but it does not resolve the deeper questions about regulatory predictability and due process exposure that continue to define South Korea’s investment risk profile. Prime Minister Kim Min-seok announced on Tuesday that the International Center for Settlement of Investment Disputes (ICSID) had nullified its 2022 order requiring the South Korean government to pay principal damages of $216.5 million plus interest to Lone Star Funds over the disputed sale of Korea Exchange Bank. The ad hoc committee in Washington also ordered the private equity firm to © Korea Risk Group. All rights reserved. |





