South Korea wins partial victory in Elliott-Samsung arbitration case

South Korea scored a partial legal victory in its long-running arbitration dispute with U.S. hedge fund Elliott Management over the 2015 merger of two Samsung affiliates.

The Netherlands-based Permanent Court of Arbitration had ordered South Korea to pay Elliott roughly $100 million in 2023, after Elliott sued over the role of the National Pension Service in approving the $8 billion merger of Samsung C&T and Cheil Industries, in which Elliott held a minority stake, News.Az reports, citing Reuters.

South Korea initially challenged the tribunal’s decision at London’s High Court, arguing that the tribunal lacked jurisdiction under a U.S. free trade agreement. Although the High Court rejected the challenge, the Court of Appeal last year allowed South Korea’s appeal and sent the case back for reconsideration.

On Monday, Judge David Foxton overturned part of the arbitration award related to the National Pension Service’s actions in approving the merger. However, Elliott’s claims connected to the administration of former President Park Geun-hye were sent back to the arbitration tribunal for further review.

The South Korean government called the ruling a “valuable victory.” Elliott did not immediately comment. The decision comes just hours after Samsung Chairman Jay Y. Lee was cleared by South Korea’s top court.

News.Az 

By Aysel Mammadzada