Lone Star Funds Initiates Arbitration with South Korean Government Regarding
Korea Exchange Bank and Other Investments
DALLAS -- November 21, 2012
Lone Star Funds ("Lone Star") today confirmed that it has initiated
arbitration of its claim for damages suffered as a result of the Korean
government's unlawful interference with Lone Star's rights as the major
shareholder of Korea Exchange Bank and other Korean companies Lone Star
acquired in the early 2000s.
The claims arise out of the government's failure to comply with its
obligations under the investment treaty between South Korea and Belgium and
Luxembourg. Lone Star provided a formal notice of its claims to the Korean
government in May 2012.
Michael Thomson, General Counsel of Lone Star Funds, stated, "Though we sought
discussions with the South Korean government following our May 2012 notice, an
amicable resolution to this dispute has not been possible. Given our duties to
our investors, we are obliged to proceed to arbitration with the claims set
out in our notice."
The arbitration will proceed before the International Centre for Settlement of
Investment Disputes in Washington, D.C.
About Lone Star Funds
Lone Star invests capital committed to it by institutional investors worldwide
in corporate, commercial real estate, single-family residential, and consumer
debt products, as well as equity investments in residential and commercial
real estate, banks and other operating companies. Since 1995, the principals
of Lone Star have managed private equity funds totaling approximately $33
billion of committed capital.
Joele Frank, Wilkinson Brimmer Katcher
Andy Brimmer / Jed Repko, 212-355-4449
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