Korean government wins $127 million tax refund lawsuit against Lone Star

What happened: The Seoul High Court rejected Lone Star Funds' claims for 168.2 billion won in tax refunds in a retrial ordered by the Supreme Court, ruling in favor of the South Korean government and Seoul. Key numbers: 168.2 billion won ($127 million) Why it matters: The ruling dismissed refund orders that lower courts had issued against the central government, Seoul and Gangnam-gu. The Supreme Court had found in April 2025 that refund rights for taxes withheld at source generally belonged to the withholding companies, not Lone Star, and sent the case back to weigh special circumstances.

The Seoul High Court rejected Lone Star Funds' claims for 168.2 billion won in tax refunds in a retrial ordered by the Supreme Court, ruling in favor of the South Korean government and Seoul.

The ruling dismissed refund orders that lower courts had issued against the central government, Seoul and Gangnam-gu. The Supreme Court had found in April 2025 that refund rights for taxes withheld at source generally belonged to the withholding companies, not Lone Star, and sent the case back to weigh special circumstances.