To Respond to Dispute Filed by Lone Star Funds
The Financial Services Commission announced on July 7 that it would set up a task force in order to better respond to financial disputes such as the investor-state dispute (ISD) against Lone Star Funds. The task force directly under the secretary general of the commission is scheduled to be officially launched on July 19.
The American private equity fund filed the suit in November 2012, claiming that the South Korean government caused losses by imposing arbitrary and discriminatory taxes, delaying a sale and forcing a lower price.
Lone Star Funds is claiming that it could not sell Korea Exchange Bank to HSBC in September 2007 because of the South Korean government’s disapproval and that the price was lowered due to a delay although it managed to sell Korea Exchange Bank to Hana Bank in 2012. A total of US$4,679.5 million is at stake in the dispute.