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On October 22, an appeals court in South Korea ruled against U.S. private equity firm Lone Star Funds in a tax dispute involving a combined 168.2 billion won (US$125.9 million) in taxes. The decision followed a review by the Supreme Court in April of the previous year.

Lone Star had initiated the legal action against the South Korean and Seoul city governments, seeking the return of taxes withheld from its profits earned through investments in three South Korean entities between 2002 and 2005. These investments included Korea Exchange Bank, Kukdong Engineering Construction, and Starlease, which Lone Star acquired for substantial gains upon selling some shares in 2007.

The company justified the lower tax payments by citing the tax treaty between South Korea and Belgium, the location of the investment firm. However, the National Tax Service (NTS) imposed additional corporate taxes, offsetting the withheld taxes. Lone Star subsequently appealed the ruling, and the Supreme Court supported their position in 2017, dismissing the NTS argument that the company had a firm presence in South Korea.

Following a refund of the taxes, excluding the withheld amount, Lone Star pursued further legal action against the government and the municipality, demanding 153 billion won and 15.2 billion won, respectively. Despite initial victories in lower courts and the Seoul High Court, the Supreme Court ultimately remanded the case, ruling that the refund of withheld taxes is the responsibility of Korea Exchange Bank and other withholding agents, rather than Lone Star.