Case Details

LSF-KEB Holdings SCA and others v. Republic of Korea (ICSID Case No. ARB/12/37)

Subject of Dispute:

Banking enterprise, engineering and construction services and commercial real estate
Economic Sector:

Finance
Instrument(s) Invoked:

BIT Korea, Republic of - Belgium-Luxembourg 1974
Applicable Rules:

ICSID Convention - Arbitration Rules

(a) Original Proceeding

Claimant(s)/Nationality(ies):

Lone Star Capital Investments S.ár.l. (Luxembourg), LSF SLF Holdings SCA (Belgian), Kukdong Holdings II SCA (Belgian), HL Holdings SCA (Belgian), Star Holdings SCA (Belgian), LSF-KEB Holdings SCA (Belgian), Kukdong Holdings I SCA (Belgian), Lone Star Capital Management SPRL (Belgian)
Respondent(s):

Republic of Korea (Korean)
Date Registered:

December 10, 2012
Date of Constitution of Tribunal:

May 10, 2013

Composition of Tribunal

President:

Ian BINNIE (Canadian) - Appointed by the Parties
Arbitrators:

Charles N. BROWER (U.S.) - Appointed by the Claimant(s)
Brigitte STERN (French) - Appointed by the Respondent(s)

Initial Composition of Tribunal

President:

V.V. VEEDER (British) - Appointed by the Parties
Arbitrators:

Charles N. BROWER (U.S.) - Appointed by the Claimant(s)
Brigitte STERN (French) - Appointed by the Respondent(s)
Reconstituted:

June 22, 2020: Ian BINNIE (Canadian) appointed following the resignation of V.V. VEEDER (British)

Party Representatives

Claimant(s):

KL Partners, Seoul, Korea
Shin & Kim, Seoul, Korea
Sidley Austin, Washington, D.C., U.S.A.
Stanimir A. Alexandrov, Washington, D.C., U.S.A.
Respondent(s):

Ministry of Justice, International Legal Affairs Division, Korea
Language(s) of Proceeding:

English
Status of Proceeding:

Concluded
Outcome of Proceeding:

August 30, 2022 - The Tribunal renders its award; attached to the award is a concurring opinion by arbitrator Charles N. Brower and a dissenting opinion by arbitrator Brigitte Stern.

(b) Rectification Proceeding

Applicant(s)/Requesting Party(ies):

Respondent(s)
Date Registered:

October 19, 2022 (Respondent(s))

Party Representatives

Claimant(s):

Stanimir A. Alexandrov, Washington, D.C., U.S.A.
Respondent(s):

Ministry of Justice, International Legal Affairs Division, Korea
Status of Proceeding:

Concluded
Outcome of Proceeding:

May 8, 2023 - The Tribunal issues a decision on the rectification of the award.

(c) Annulment Proceeding

Applicant(s)/Requesting Party(ies):

Claimant(s)
Date Registered:

August 7, 2023
Date of Constitution of ad hoc Committee:

November 1, 2023

Composition of ad hoc Committee (Appointed by the Chairman of the Administrative Council)

President:

Lawrence BOO (Singaporean)
Members:

Doug JONES (Australian, Irish)
Eva KALNINA (Latvian)

Party Representatives

Claimant(s):

Stanimir A. Alexandrov, Washington, D.C., U.S.A.
MCarlson Arbitration, Washington, D.C., U.S.A.
Sidley Austin, Washington, D.C., U.S.A
Baker McKenzie & KL Partners Joint Venture Law Firm, Seoul, Korea
Respondent(s):

Ministry of Justice, International Legal Affairs Division, Korea
Arnold & Porter, Washington, D.C., U.S.A.
Bae, Kim & Lee, Seoul, Korea
Peter & Kim, Seoul, Korea
Language(s) of Proceeding:

English
Status of Proceeding:

Pending
Latest Development:

November 13, 2024 - The ad hoc Committee issues Procedural Order No. 3 concerning procedural matters.

(d) Second Annulment Proceeding

Applicant(s)/Requesting Party(ies):

Respondent(s)
Date Registered:

September 12, 2023
Date of Constitution of Tribunal:

November 1, 2023

Composition of Tribunal

President:

Lawrence BOO (Singaporean)
Arbitrators:

Doug JONES (Australian, Irish)
Eva KALNINA (Latvian)

Party Representatives

Claimant(s):

Stanimir A. Alexandrov, Washington, D.C., U.S.A.
MCarlson Arbitration, Washington, D.C., U.S.A.
Sidley Austin, Washington, D.C., U.S.A
Baker McKenzie & KL Partners Joint Venture Law Firm, Seoul, Korea
Respondent(s):

Ministry of Justice, International Legal Affairs Division, Korea
Arnold & Porter - Washington, DC, U.S.A.
Bae, Kim & Lee, Seoul, Korea
Peter & Kim, Seoul, Korea
Language(s) of Proceeding:

English
Status of Proceeding:

Pending
Latest Development:

November 13, 2024 - The ad hoc Committee issues Procedural Order No. 3 concerning procedural matters.

(a) Original Proceeding

Published Decisions

Award of the Tribunal (English;)

(b) Annulment Proceeding

Published Decisions

Decision on Stay of Enforcement

Available on the ICSID Website

Decision on Stay of Enforcement (December 15, 2023) English (Original)

(c) Second Annulment Proceeding

Published Decisions

Decision on Stay of Enforcement

Available on the ICSID Website

Decision on Stay of Enforcement (December 15, 2023) English (Original)

(a) Original Proceeding

Date	Development
December 10, 2012	The Secretary-General registers a request for the institution of arbitration proceedings.
January 22, 2013	Following appointment by the Claimants, Charles N. Brower (U.S.) accepts his appointment as arbitrator.
February 12, 2013	Following appointment by the Respondent, Brigitte Stern (French) accepts her appointment as arbitrator.
May 9, 2013	Following appointment by agreement of the parties from a proposed list provided by the co-arbitrators, V.V. Veeder (British) accepts his appointment as presiding arbitrator.
May 10, 2013	The Tribunal is constituted in accordance with Article 37(2)(a) of the ICSID Convention. Its members are: V.V. Veeder (British), President, appointed by agreement of the parties from a proposed list provided by the co-arbitrators; Charles N. Brower (U.S.), appointed by the Claimants; and Brigitte Stern (French), appointed by the Respondent.
June 14, 2013	The Tribunal holds a first session by telephone conference.
July 8, 2013	The Tribunal decides on procedural matters.
October 15, 2013	The Claimants file a memorial on the merits.
October 22, 2013	The Tribunal issues Procedural Order No.1 concerning procedural matters.
November 12, 2013	The Respondent files a request to address the objections to jurisdiction as a preliminary question.
November 27, 2013	The Claimants file observations on the request to address the objections to jurisdiction as a preliminary question.
December 23, 2013	The Tribunal issues a decision on Respondent's request to address the objections to jurisdiction as a preliminary question.
March 21, 2014	The Respondent files a counter-memorial on jurisdiction and the merits.
May 2, 2014	The Tribunal issues Procedural Order No. 2 concerning the procedural calendar.
June 17, 2014	The Tribunal issues Procedural Order No. 3 concerning production of documents.
July 14, 2014	The Tribunal issues Procedural Order No. 4 concerning production of documents.
August 27, 2014	The Tribunal issues Procedural Order No. 5 concerning the confidentiality of information.
September 19, 2014	The Tribunal issues Procedural Order No. 6 concerning the procedural calendar.
September 25, 2014	The Tribunal issues Procedural Order No. 7 concerning procedural matters.
October 1, 2014	The Claimants file a reply on jurisdiction and the merits.
January 5, 2015	The Tribunal issues Procedural Order No. 8 concerning procedural matters.
January 21, 2015	The Tribunal issues Procedural Order No. 9 concerning production of documents.
January 23, 2015	The Respondent files a rejoinder on jurisdiction and the merits.
March 12, 2015	The Tribunal issues Procedural Order No. 10 concerning procedural matters.
March 31, 2015	The Claimants file further observations on jurisdiction.
April 30, 2015	The President holds a pre-hearing organizational meeting with the parties by telephone conference.
May 12, 2015	The Tribunal issues Procedural Order No. 11 concerning production of documents.
May 15, 2015 - May 22, 2015	The Tribunal holds a hearing on the merits in Washington, D.C.
May 18, 2015	The Tribunal issues Procedural Order No. 12 concerning production of documents.
May 27, 2015	The Tribunal issues Procedural Order No. 13 concerning procedural matters.
June 18, 2015	The Tribunal issues Procedural Order No. 14 concerning procedural matters.
June 29, 2015 - July 7, 2015	The Tribunal holds a hearing on the merits in Washington, D.C.
November 30, 2015	A non-disputing party files an application to file a written submission pursuant to ICSID Arbitration Rule 37(2).
December 11, 2015	Each party files observations on the non-disputing party’s application.
December 21, 2015	The Tribunal issues Procedural Order No. 15 concerning the non-disputing party’s application to file a written submission pursuant to ICSID Arbitration Rule 37(2).
January 5, 2016 - January 7, 2016	The Tribunal holds a hearing on jurisdiction in The Hague.
April 7, 2016	The Tribunal issues Procedural Order No. 16 concerning procedural matters.
June 2, 2016 - June 3, 2016	The Tribunal holds a hearing on the merits in The Hague.
July 29, 2016	Each party files a statement of costs.
August 1, 2016	The Tribunal issues Procedural Order No. 17 concerning procedural matters.
August 15, 2016	Each party files a reply statement of costs.
December 18, 2018	The non-disputing party files a further application to file a written submission pursuant to ICSID Arbitration Rule 37(2).
February 11, 2019	The Tribunal issues Procedural Order No. 18 concerning procedural matters.
February 28, 2019	Each party files observations on the non-disputing party’s further application.
April 8, 2019	The Tribunal issues Procedural Order No. 19 concerning the non-disputing party’s further application to file a written submission pursuant to ICSID Arbitration Rule 37(2).
April 15, 2019	The Tribunal issues Procedural Order No. 20 concerning procedural matters.
May 22, 2019	The Tribunal issues Procedural Order No. 21 concerning procedural matters.
May 29, 2019	The Tribunal issues Procedural Order No. 22 concerning procedural matters.
June 12, 2019	The Tribunal issues Procedural Order No. 23 concerning procedural matters.
July 19, 2019	The Tribunal issues Procedural Order No. 24 concerning procedural matters.
January 15, 2020	The Tribunal issues Procedural Order No. 25 concerning procedural matters.
March 5, 2020	Following the resignation of arbitrator V.V. Veeder, the Secretary-General notifies the parties of the vacancy on the Tribunal and the proceeding is suspended pursuant to ICSID Arbitration Rule 10(2).
June 22, 2020	Following the resignation of arbitrator V.V. Veeder, Ian Binnie (Canadian) accepts his appointment as arbitrator, appointed by his co-arbitrators in accordance with ICSID Arbitration Rule 11(1).
June 22, 2020	The Tribunal is reconstituted. Its members are: Ian Binnie (Canadian), President, appointed by agreement of the parties; Charles N. Brower (U.S.), appointed by the Claimants; and Brigitte Stern (French), appointed by the Respondent. The proceeding is resumed pursuant to ICSID Arbitration Rule 12.
October 14, 2020 - October 15, 2020	The Tribunal holds a hearing by video conference.
June 28, 2022	The Tribunal declares the proceeding closed in accordance with ICSID Arbitration Rule 38(1).
August 30, 2022	The Tribunal renders its award; attached to the award is a concurring opinion by arbitrator Charles N. Brower and a dissenting opinion by arbitrator Brigitte Stern.

(b) Rectification Proceeding

Date	Development
October 19, 2022	The Secretary-General registers a request for rectification of the award filed by the Republic of Korea.
November 21, 2022	LSF-KEB Holdings SCA and others file observations on the Republic of Korea’s request of October 19, 2022.
April 18, 2023	Each party files a submission on costs.
May 8, 2023	The Tribunal issues a decision on the rectification of the award.

(c) Annulment Proceeding

Date	Development
August 7, 2023	The Secretary-General registers an application for partial annulment of the award filed by LSF-KEB Holdings SCA and others.
November 1, 2023	The ad hoc Committee is constituted in accordance with Article 52(3) of the ICSID Convention. Its members are: Lawrence Boo (Singaporean), President; Doug Jones (Australian/Irish); and Eva Kalnina (Latvian); all members appointed by the Chairman of the Administrative Council.
November 1, 2023	The Republic of Korea files a request to continue the stay of enforcement of the award.
November 10, 2023	LSF-KEB Holdings SCA and others file observations on the Republic of Korea’s request to continue the stay of enforcement of the award.
December 15, 2023	The ad hoc Committee issues a decision on the continuation of the stay of enforcement of the award.
January 11, 2024	The ad hoc Committee holds a first session by video conference.
February 1, 2024	The ad hoc Committee issues Procedural Order No. 1 concerning procedural matters.
February 16, 2024	The ad hoc Committee issues Procedural Order No. 2 concerning confidentiality.
March 22, 2024	The ad hoc Committee holds a case management conference with the parties by video conference.
April 17, 2024	LSF-KEB Holdings SCA and others file a memorial on partial annulment.
August 28, 2024	LSF-KEB Holdings SCA and others file a reply on annulment.
August 30, 2024	The Republic of Korea files a counter-memorial on annulment.
November 13, 2024	The ad hoc Committee issues Procedural Order No. 3 concerning procedural matters.

(d) Second Annulment Proceeding

Date	Development
September 12, 2023	The Secretary-General registers an application for partial annulment of the award filed by the Republic of Korea, and notifies the parties of the provisional stay of enforcement of the award.
November 1, 2023	The ad hoc Committee is constituted in accordance with Article 52(3) of the ICSID Convention. Its members are: Lawrence Boo (Singaporean), President; Doug Jones (Australian/Irish); and Eva Kalnina (Latvian); all members appointed by the Chairman of the Administrative Council.
November 1, 2023	The Republic of Korea files a request to continue the stay of enforcement of the award.
November 10, 2023	LSF-KEB Holdings SCA and others file observations on the Republic of Korea’s request to continue the stay of enforcement of the award.
November 22, 2023	The ad hoc Committee holds a hearing on the stay of enforcement of the award by video conference.
December 15, 2023	The ad hoc Committee issues a decision on the continuation of the stay of enforcement of the award.
January 11, 2024	The ad hoc Committee holds a first session by video conference.
February 1, 2024	The ad hoc Committee issues Procedural Order No. 1 concerning procedural matters.
February 16, 2024	The ad hoc Committee issues Procedural Order No. 2 concerning confidentiality.
March 22, 2024	The ad hoc Committee holds a case management conference with the parties by video conference.
April 17, 2024	The Republic of Korea files a memorial on annulment.
August 30, 2024	LSF-KEB Holdings SCA and others file a counter-memorial on annulment.
October 28, 2024	The Republic of Korea files a reply on annulment.
November 13, 2024	The ad hoc Committee issues Procedural Order No. 3 concerning procedural matters.