Minbyun, or Lawyers for a Democratic Society, renewed their request on Wednesday for permission to observe the hearings in a multibillion-dollar case the U.S. private equity firm Lone Star filed against South Korea over disputes surrounding its asset sell-offs in Korea.
In a press conference the group said, “While the case involves some 5 trillion won of state budget, the people, the taxpayers, are not aware of the alleged logic behind Lone Star’s demand or who is appearing as witness.”
The group called on the government to agree to publicize the trial. It has submitted the request to observe the process with the International Centre for Settlement of Investment Disputes this Monday.
Both the Seoul government and Lone Star must agree in order for the hearing to be open to public.
Last month, the ICSID wrapped up the first round of hearing in Washington.
The case is the latest and the biggest in a series of legal battles involving Lone Star’s investments in South Korea, including the 2003 purchase of a controlling stake in Korea Exchange Bank, and its sell-off of those assets for large margins.
Lone Star is demanding South Korea pay it nearly $4.68 billion, claiming it was forced to pay unfair taxes and suffered losses due to Seoul’s delay in approving a profitable deal. It represents the first investor-state dispute filed against South Korea’s government.
The case has drawn keen attention on South Korea not only because of the amount of money involved but also its possible repercussions amid concern that if the country loses in the case, it could spark similar suits by foreign firms.
South Korea has handled the case after forming an interagency team comprising the Office for Government Policy Coordination, Finance Ministry, Foreign Ministry, Justice Ministry, National Tax Service and the Financial Services Commission.
A second round of hearings is scheduled to take place for 10 days starting June 29.
From news reports (khnews@heraldcorp.com)
