SEOUL: South Korea has been ordered by the Permanent Court of Arbitration in the Netherlands to pay 43.8 billion won (approximately $32 million) to U.S.-based hedge fund Mason Capital.
According to Yonhap News Agency, the decision arrives nearly six years after Mason Capital initiated an investor-state dispute over the 2015 merger of Samsung C&T Corp. and Cheil Industries Inc. The awarded compensation is about 16 percent of the $200 million sought by Mason, who claimed the merger undervalued its shares in Samsung C&T, affecting shareholders negatively.
The tribunal also mandated annual compound interest of 5 percent on delayed payments from July 2015 until the ruling date, plus $10.9 million for legal and arbitration costs. The case has been a focal point of controversy, linked to a broader corruption scandal involving former President Park and Samsung heir Lee Jae-yong, impacting the South Korean government's reputation and policies concerning corporate governance.