Legal Proceedings
2008-08-12On August 11, 2008, Kookmin Bank received written notice of the Seoul Central District Court's decision on a lawsuit filed against us by Korea Lottery Service Inc. ("KLS") for unpaid fees for the period from June 2004 to December 2006, which was previously disclosed on February 6, 2007. The court ruled in favor of KLS in part but reduced the amount of damages to Won 123 billion. The court also ruled that Kookmin Bank is required to pay interest on the damages at a rate of (i) 6% per annum for the periods from the date after each applicable payment date to July 25, 2008 and (ii) 20% per annum for the period from July 26, 2008 to the date of full payment. Further, the court ruled that Kookmin Bank (including parties participating in the litigation to assist Kookmin Bank) and KLS would be required to pay one-third and two-thirds, respectively, of the litigation costs.
The judgment will be paid from the funds managed by the Lottery Commission of the Korean government.
Kookmin Bank is planning to appeal such decision.
Related disclosure: February 6, 2007.