US Private Equity Fund Wins Pyrrhic Victory Over Seoul

2022-08-31 03:32:01

(MENAFN- Asia Times)

SEOUL - A 10-year arbitration battle wrapped up on August 30 with the International Centre for Settlement of Investment Disputes (ICSID) awarding American private equity fund Lone Star US$217 million in damages from the South Korean government.

The case was sparked by what the Dallas-based fund alleged was Seoul's refusal to permit the sale of a distressed asset it had acquired within a reasonable time frame, robbing it of billions of dollars worth of profits. Lone Star opened proceedings at the ICSID in 2012.

However, this dry description does not do the investor-state dispute, which took place in the tumultuous wake of the 1997-8 Asian financial crisis, justice.

The highly emotive struggle saw unionists wielding machetes, secret cameras embedded in C suites, fund chairmen being grilled in court and questions being asked behind closed doors in Washington's corridors of power.

To continue reading, please log in to your AT+ Premium account. Not yet a member? Please signup for AT+ Premium monthly membership , AT+ Premium yearly membership , AT+ Premium yearly membership (educator) , AT+ Premium yearly membership (student) or AT+ Premium Access membership .

MENAFN31082022000159011032ID1104790087

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.