South Korea objects to World Bank’s order to pay Lone Star

SEOUL, South Korea (AP) — South Korea plans to challenge a World Bank tribunal’s order to pay $216.5 million plus interest to Texas-based Lone Star Funds in their dispute over the private equity firm’s sale of Korea Exchange Bank. Justice Minister Han Dong-hoon called the ruling unacceptable because there was no fault in the way financial regulators handled the 2012 sale. He said the ministry is considering seeking an annulment or other steps. The payment ordered by the tribunal was only 4.6% of $4.68 billion Lone Star had demanded. Lone Star said the ruling vindicated its claim that South Korean regulators violated the law but said the amount was inadequate to compensate for the losses.