Arnold & Porter Secures Annulment for the Republic of Korea in US$4.7 Billion Lone Star Dispute

Arnold & Porter represented the Republic of Korea in the ICSID annulment proceeding brought in relation to the Lone Star investor-state dispute. On November 18, 2025, a three-member committee appointed by ICSID annulled the part of the arbitral tribunal’s final award that had held Korea liable for a breach of its investment-treaty obligations. The Committee found that the tribunal’s finding of liability was tainted by a due process violation and could not stand. The decision eliminates Korea’s liability under that part of the award, affirms the portions of the award that had dismissed other investor claims, and awards Korea its full legal costs of the annulment proceeding. The underlying proceedings spanned ten years. In 2022, an arbitral tribunal dismissed almost all of the investors’ claims but, by majority, found Korea liable on a single claim and awarded damages of more than US$216 million plus interest (less than 5% of the more than US$4.67 billion sought by Lone Star). The Committee’s decision annuls in its entirety the tribunal majority’s finding of liability and the damages award. Arnold & Porter represented the Republic of Korea with a team composed by: partners Paolo Di Rosa, Jun Hee Kim (partner, who leads the firm’s Korea practice), and Anton A. Ware (partner, who acted as lead counsel in the annulment proceeding); and senior associates John Muse-Fisher, Katelyn A. Horne, and Brian Bombassaro.

Arnold & Porter Secures Annulment for the Republic of Korea in US$4.7 Billion Lone Star Dispute

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