Originally from the Journal of Damages in International Arbitration

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The Parties
LSF-KEB Holdings SCA, LSF SLF Holdings SCA, HL Holdings SCA, Kukdong Holdings I SCA, Kukdong Holdings II SCA, Star Holdings SCA, Lone Star Capital Management SPRL and Lone Star Capital Investments S.a.r.l. (jointly, Lone Star or Claimants) 
Republic of Korea (Respondent)

Sector
Banking

Applicable Treaty
Bilateral investment treaty (BIT) between Korea and Belgium-Luxembourg Economic Union (2011) (2011 BIT)

Members of the Tribunal
V.V. Veeder, QC (president from 2013-2020; resigned); Ian Binnie, C.C., Q.C. (president from 2020 onward); Charles N. Brower (Claimants’ appointee); and Brigitte Stern (Respondent’s appointee) 

I. BACKGROUND

LSF-KEB and its co-claimants are subsidiaries of a Texas-based investment fund commonly known as Lone Star. In 2003, Lone Star purchased the Korean Exchange Bank (KEB) for US $1.7 billion, with the goal of overhauling it and selling it at a profit.