Korea ordered to pay Elliott $113mn in renewed ISDS ruling

By Maekyung News Service

South Korea has again been held liable in an international investment dispute settlement (ISDS) case brought by U.S. hedge fund Elliott Investment Management L.P. over the 2015 Samsung C&T Corp.-Cheil Industries Co. merger.

The government faces a total payment of about $113 million, including damages, interest, and legal and litigation costs.

Maeil Business has learned Thursday that the arbitration tribunal issued a supplemental ruling on Wednesday, finding that intervention by the presidential office and the Ministry of Health and Welfare influenced the National Pension Service’s voting decision and caused losses to Elliott.

The ruling came after the High Court in the United Kingdom partially overturned the original 2023 award in February and sent the case back to the tribunal. While the British court rejected the finding that the NPS’s vote could be directly attributed to the Korean government, it recognized the government agencies’ intervention as state action and ordered a review of whether it caused Elliott’s losses.

The tribunal again found the government liable, this time based on the causal link between the agencies’ intervention and Elliott’s losses, rather than the NPS’s legal status.

The total amount, including damages, interest, and legal and litigation costs, is about $113 million. The Ministry of Justice is reviewing the ruling and has yet to decide whether to pay the award or seek to have it overturned again.

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