Seoul:South Korea has announced its decision to accept an international arbitration ruling in favor of U.S. hedge fund Elliott Investment Management regarding the 2015 merger between two Samsung affiliates. The justice ministry confirmed this decision on Wednesday, stating that they will not pursue legal action to annul the previous ruling.
According to Yonhap News Agency, the arbitration ruling mandates South Korea to compensate Elliott with approximately 153 billion won (US$114 million) in damages, along with accrued interest. This development follows Elliott's initial filing of the case in 2018, which sought compensation due to alleged losses stemming from the controversial merger of Samsung C&T Corp. and Cheil Industries Co.
Elliott, a minority stakeholder in Samsung C&T, claimed that the South Korean government unfairly mediated the merger's approval process. An international tribunal initially ruled in favor of Elliott in 2023. However, the South Korean government challenged the decision in the High Court in London, which eventually remanded the case back to the international tribunal for further review in March.
The tribunal's September 30 ruling affirmed a causal link between the South Korean government's intervention in the merger's approval and the financial losses incurred by Elliott.