Seoul:South Korea has decided to accept an international arbitration ruling in favor of the U.S. hedge fund Elliott Investment Management concerning the 2015 merger of two Samsung affiliates, as announced by the justice ministry.
According to Yonhap News Agency, the ministry has chosen not to pursue a lawsuit to overturn the ruling, which mandates South Korea to pay approximately 153 billion won (US$114 million) in damages, along with interest, to Elliott.
Elliott Investment Management initiated the case in 2018, seeking reparations for financial losses stemming from the contentious merger between Samsung C&T Corp. and Cheil Industries Co. The hedge fund, a minority shareholder in Samsung C&T, contended that the South Korean government had unfairly intervened in the merger's approval process.
In 2023, an international tribunal ruled in favor of Elliott. However, the South Korean government escalated the matter to the High Court in London. The case was subsequently returned to the international tribunal for further review in March. On September 30, the tribunal's remanded decision acknowledged a causal link between the South Korean government's intervention in the merger approval and Elliott's subsequent losses.