Overview
- An ICSID annulment committee nullified the 2022 ruling that had ordered South Korea to pay Lone Star US$216.5 million plus interest.
- The decision extinguishes roughly 400 billion won in state liability, and Lone Star must reimburse about 7.3 billion won in Korea’s legal costs within 30 days.
- The committee’s action followed Korea’s challenge alleging excess of powers, inadequate reasoning, and other procedural defects rather than a reassessment of the case’s merits.
- Full annulments at ICSID are uncommon, with only a small number of complete vacaturs to date, and experts say enforcement or a fresh case by Lone Star now appears unlikely.
- The dispute arose from Lone Star’s 2012 ISDS claim over the sale of Korea Exchange Bank after its 2003 purchase and 2012 exit, which yielded a 2022 award equal to about 4.6% of the US$4.67 billion originally sought.