S. Korea lodges suit to reverse PCA's compensation order in dispute with Elliott

Samsung merger-dispute

S. Korea lodges suit to reverse PCA's compensation order in dispute with Elliott

SEOUL, July 18 (Yonhap) -- The government has filed a suit to reverse an international tribunal's order to pay nearly US$100 million in damages to hedge fund Elliott Investment Management in a dispute stemming from the controversial 2015 merger of two Samsung Group affiliates, officials said Tuesday.

Last month, the Permanent Court of Arbitration (PCA) in the Netherlands delivered the verdict in the investor-state dispute settlement (ISDS) suit that the New York-based activist fund filed in 2018, demanding compensation of $770 million from the South Korean government.

Including delayed interest and legal fees, Seoul was ordered to pay US$107.8 million to Elliott.

The legal battle dates back to 2015, when the state-run National Pension Service (NPS) approved the merger of Samsung C&T Corp. and Cheil Industries Inc., a move widely seen as intended to tighten Samsung heir Lee Jae-yong's control over the family-controlled group, as his father Lee Kun-hee had suffered a heart attack the previous year.

Elliott, which held a 7.12 percent stake in Samsung C&T at the time and objected to the merger, has since filed the ISDS case, claiming the then Park Geun-hye administration pressured the NPS into throwing support behind the merger.

The Ministry of Justice on Tuesday said the government has filed a suit with a court in Britain, the location of the arbitration, to cancel the PCA verdict and has lodged a separate request with the PCA to correct the ruling.

(END)

(C) Yonhap News Agency. All Rights Reserved