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ICSID Annuls $216.5 Million Lone Star Award Against South Korea in Rare Full Overturn

The decision reflects accepted claims of due‑process violations by the original tribunal.

Overview

  • An ICSID annulment committee voided the 2022 award that had ordered Seoul to pay Lone Star $216.5 million plus interest, erasing roughly 400 billion won in liability.
  • Lone Star was ordered to reimburse about 7.3 billion won in South Korea’s legal costs within 30 days.
  • Officials said the challenge centered on procedural faults, including the tribunal’s reliance on an ICC award from a case where Korea was not a party, with the committee’s full reasoning not yet public.
  • Full annulments at ICSID are exceptional, with only 25 of 503 decisions annulled and just eight entirely overturned since 1972.
  • Lone Star said it intends to seek a new tribunal, while rival parties in Seoul are trading claims over who deserves credit for the outcome.