Ministry of Justice Briefs on Decision to Dismiss Lone Star ISDS Claim
Background to the Lone Star ISDS Lawsuit Briefing
The Ministry of Justice held a briefing on the international arbitration tribunal's decision to largely dismiss Lone Star's claims and mostly uphold the Korean government's position in the investor-state dispute settlement (ISDS) case with Lone Star on the 19th. Jeong Hong-sik, Director-General of the International Legal Affairs Bureau at the Ministry of Justice, held the briefing at the Government Complex in Gwacheon, Gyeonggi Province, to announce the significant arbitration result in the long-standing legal battle with Lone Star. This briefing was prepared to directly explain the key issues in the Lone Star ISDS lawsuit and the international arbitration tribunal's decision to the public.
Case History and Key Issues
The Lone Star ISDS case is an investor-state lawsuit filed by Lone Star against the Korean government, with Lone Star claiming investment losses due to unfair taxation and regulations by the Korean government. In response, the Korean government argued that Lone Star's claims were untrue and that it had legally enforced taxation and regulations in accordance with Korean laws and regulations. The main issues in this case were whether Lone Star's investment losses were caused by unfair actions by the Korean government and whether Lone Star complied with Korean laws and regulations.
International Arbitration Tribunal Decision
After comprehensively reviewing the arguments of Lone Star and the Korean government, the international arbitration tribunal largely dismissed Lone Star's claims and accepted a significant portion of the Korean government's position. In particular, the international arbitration tribunal found that Lone Star had not complied with Korean laws and regulations, and that some of the investment losses were due to Lone Star's management misjudgments. It also concluded that the Korean government's taxation and regulations were not unfair or discriminatory. Ministry of Justice Assessment and Future Plans
Director-General Jeong explained, "The international arbitration tribunal largely dismissed Lone Star's claims and accepted a significant portion of the Korean government's position," and emphasized, "This is the result of the Korean government's legal arguments being internationally recognized." The Ministry of Justice expects this decision to serve as an important precedent in international investment dispute resolution procedures and stated that it will continue to make every effort to protect the national interests of the Republic of Korea through thorough preparation and active response to international investment disputes.
