On selling its stake in Korea Exchange Bank last year the fund paid more than US$125 million in taxes.

The National Tax Service says Lone Star paid the tax last November, 10 percent of the transaction costs of selling its KEB shares in June last year.

The taxes were paid through a brokerage, the same one that arranged Lone Star's block sale of its KEB shares to 144 investors at home and abroad.

Lone Star's motion is for a refund on the taxes deducted in the selling process. It claims its tax obligations with respect to the bank sale lie in Belgium, where the head office in charge of the transaction is located.

Arirang News