S.Korea to consider seeking annulment of $217 mln Lone Star ruling

Credit: REUTERS/Kim Hong-Ji

Adds justice minister's remarks

SEOUL, Aug 31 (Reuters) - South Korea said on Wednesday it would consider seeking the annulment of an international tribunal order to pay damages of $216.5 million plus interest to Lone Star Funds over the U.S. private equity firm's sale of Korea Exchange Bank.

Justice Minister Han Dong-hoon told a news conference the ruling by the International Centre for Settlement of Investment Disputes (ICSID) was unacceptable because the government was just and fair in handling the sale process.

He said the damages awarded by the World Bank Group organisation, which his ministry received notice of early on Wednesday, represented just 4.6% of $4.68 billion Lone Star had sought.

"The government has a consistent stance that it treated the matter in a just and fair manner without discrimination and in accordance with international law and treaties," he said.

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.

A lawyer at a Seoul-based representative firm for Lone Star declined to comment.

Korea Exchange Bank has since been merged into Hana Bank.

(Reporting by Choonsik Yoo; Editing by Edwina Gibbs and Christopher Cushing)

((choonsik.yoo@thomsonreuters.com; +822 6936 1464;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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