The South Korean government is challenging a World Bank ruling that it must pay Texas-based private equity firm Lone Star Funds $216.5 million over a decadeslong dispute over the sale of a South Korean bank.
South Korea’s government said it would seek an annulment of the ruling from the World Bank, which marked a victory for Lone Star after 10 years of arguing the South Korean government had slowed down the regulatory process and forced it to sell Korea Exchange Bank at a lower price.
UKRAINE HAS SOLD $12.4 BILLION IN GOLD RESERVES SINCE WAR’S START: DEPUTY BANKING HEAD
A spokesman for the firm told the Washington Examiner it was pleased with the ruling but “disappointed” with the compensation total ordered by the tribunal.
“On behalf of our investors, Lone Star is pleased that the Tribunal vindicated our fundamental claim that the Korean regulators violated Korean and international law in relation to Lone Star’s multi-year effort to sell its controlling interest in KEB,” the spokesperson said. “However, we are disappointed in the amount of the award which fails to fully compensate Lone Star and its investors for losses resulting from the Korean government’s wrongful conduct or for the risks Lone Star took in rescuing KEB in 2003, and the value it added for the benefit of all of KEB’s shareholders and the Korean banking system.”
Lone Star was seeking $4.68 billion but was only awarded roughly a fraction of the demands from the World Bank ruling. The Texas firm acquired a majority stake in the Korea Exchange Bank in 2003.
CLICK HERE FOR MORE FROM THE WASHINGTON EXAMINER
After several failed attempts, Lone Star sold its stake in the Korea Exchange Bank to the Hana Financial Group for 3.9 trillion won, or $2.9 billion, in 2012.
