Lone Star Case and Its Implications for Investment Policy of Korea

This chapter will examine the ICSID arbitral award in the Lone Star case as it is essential for understanding its impact on Korea’s investment policies and future ISDS cases. The chapter will begin by outlining the background of the case and then explore the three most critical issues addressed: the basis of jurisdiction, tax claims with an emphasis on the application of the substance-over-form doctrine, and liability issue arising from the conduct of the Financial Services Commission (FSC). Each of these issues will be analyzed in detail from a Korean perspective.