Court: Some Non-Disclosed Parts of Lone Star ISDS Ruling Must Be Made Public

The court ruled to disclose part of the previously undisclosed content of the international investment dispute settlement (ISDS·Investor-State Dispute Settlement) case documents between the government and the foreign private equity fund Lone Star.

On the 16th, the Administrative Division 5 of the Seoul Administrative Court (Chief Judge Kim Sun-yeol) made this ruling in a lawsuit filed by lawyer Song Ki-ho against the Minister of Justice, demanding the disclosure of the original Lone Star ruling document.

The court decided to disclose the undisclosed details of the U.S. side's involvement in the Lone Star ruling document but ruled that information related to Hana Financial Group officials did not need to be disclosed. The court did not provide a separate explanation for the ruling in court.

Immediately after the trial, lawyer Song said, "The U.S. was deeply involved in the 2008 Lone Star case, and the then U.S. Ambassador to Korea pressured the Financial Services Commission, which is mentioned in the ruling document." He added, "That part was erased, but today the court ordered that part to be disclosed."

Regarding the decision not to disclose the names of Hana Financial Group officials, he said, "That part needs to be disclosed to proceed to subsequent stages such as claims for indemnity," and added, "Not allowing the disclosure of those names goes against the purpose of the Information Disclosure Act." He further stated, "The Ministry of Justice should not appeal this case and should promptly disclose the information."

Earlier, in November 2012, Lone Star filed an international arbitration through ISDS, claiming that the Korean government unfairly intervened in the sale process of Korea Exchange Bank, causing damages amounting to $4.6795 billion.