Seoul: The International Centre for Settlement of Investment Disputes has ruled that South Korea must compensate Lone Star Funds, a U.S. private equity firm, with US$216.5 million plus interest. This decision marks the conclusion of a prolonged legal skirmish concerning the firm's divestment from a local bank.

According to Yonhap News Agency, the dispute originated from Lone Star's sale of its stake in the now-defunct Korea Exchange Bank. The U.S. firm had sought damages due to the Korean government's delayed approval of the sale, demanding a significantly higher amount than what was ultimately awarded. The ordered compensation represents approximately 4.6 percent of Lone Star's original claim.

This ruling brings closure to a contentious episode that has persisted for over a decade. The case has been closely watched as it involved complex issues of international investment and regulatory approval. The outcome highlights the challenges and legal intricacies that can arise in cross-border financial transactions.