U.S. private equity firm Lone Star Funds has filed an application to cancel an international tribunal's ruling that South Korea pay over 200 million U.S. dollars in compensation.
The justice ministry said on Monday that it was informed two days prior by the World Bank-affiliated International Centre for Settlement of Investment Disputes(ICSID) that the U.S. firm submitted the application in relation to its five billion-dollar damages suit filed in 2012.
The reason behind the move is yet unknown but it is believed that the equity firm is discontent with the amount that South Korea was ordered to pay, with the 216-point-five million-dollar ruling equivalent to only four-point-six percent of the four-point-68 billion dollars originally sought.
The justice ministry said it is thoroughly reviewing Lone Star’s application and that it will apply for a cancellation before the September 5 deadline, adding that it will strive to ensure that no taxpayer money is wasted and will inform the public of any developments.
The U.S. equity firm filed the damages dispute claiming that delayed approval and heavy taxes imposed by the South Korean government forestalled its attempt to sell its stake in the Korea Exchange Bank to HSBC in 2007, four years after it purchased its shares.
It eventually sold to Seoul-based Hana Financial Group in 2010.
The government maintained that Lone Star was treated fairly under the same standards as any domestic firm.