Justice ministry requests recalculation of ICSID ruling

KBS | 15 October 2022

Justice ministry requests recalculation of ICSID ruling

The Justice Ministry has requested that the amount awarded to U.S. private equity firm Lone Star in a compliant against the Korean government at the International Centre for Settlement of Investment Disputes(ICSID) be recalculated.

The ministry said on Saturday that they had filed the application as there was a calculation error in the ruling made by the ICSID in August, where the Korean government was ordered to pay 216-point-five million U.S. dollars.

The ministry pointed out that the international tribunal was supposed to add interest from the date the damages occurred, but instead started adding interest from May 2011, before the damages occurred. They also said that the ruling had counted additional interest for a certain period.

Should the claims be accepted, the amount the South Korean government has to pay to Lone Star would be reduced to a little over 216 million U.S. dollars.

Under ICSID procedures, either party of a court case can file for a recalculation due to omissions and errors within 45 days of the award’s rendering.

Meanwhile, Korea’s Justice Ministry says that its request for a recalculation is not tacit acceptance of the arbitration ruling, saying that the government is still reviewing the decision.

Fuente: KBS