ⓒYONHAP News

An international tribunal has ruled that the South Korean government is on the hook for just over 200 million dollars but no more in a five billion dollar damages dispute filed by U.S. private equity firm Lone Star.

The Ministry of Justice said on Wednesday that the International Centre for Settlement of Investment Disputes affiliated with the World Bank made the ruling nearly a decade after the onset of the case.

The 216-point-five million U.S. dollars Seoul was ordered to pay, equivalent to 292-point-five billion won, amounts to four-point-six percent of the four-point-68 billion dollars, or around six-point-three trillion won, demanded by Lone Star.

The U.S. equity firm claimed that the South Korean government was responsible for its botched attempt to sell its stake of the Korea Exchange Bank to HSBC in 2007, four years after it purchased its shares in the Korean bank, through delayed approval and heavy taxes. It eventually sold to Seoul-based Hana Financial Group in 2010.

The Seoul government maintained that Lone Star was treated fairly under the same standards as any domestic firm.

Hours after the ruling was announced, the government said it will consider appealing the decision.

The justice ministry expressed regret over the decision it said was “difficult to accept.”

In addition to the base award, equivalent to around 292-point-five billion won, South Korea was also ordered to pay interest based on the U.S. Treasury’s monthly exchange rates since December 2011 for a total of approximately 13-point-eight million dollars, or almost 25 billion won.

Standing by its previous stance that Seoul had applied uniform and consistent standards in accordance with international laws and regulations, the ministry said it will look into seeking an annulment or injunction against the ruling.

According to ICSID, Seoul can file an application for annulment within 120 days after the verdict is awarded.