I have read an article, posted on curezone a long time back about using Iodine on scars. It can cause quite a lot of hair growth. I tried LugolsIodine on my nose scar only once with 7% solution and I noticed a thicker dark hair right by the scar which I am certain was not there before. It was a lot thicker and darker than the very fine, barely visible hairs on my nose. I did not use any more.
The article about scar healing with Iodine had pictures of a mans chest with a large scar and piles of hair growth around the scar! I wouldn't want to be turned into some hairy yeti so I will avoid using Iodine on my face.