Government loses in the remanded arbitration in Elliott ISDS

The government has lost in the remanded arbitration of the international investment dispute (ISDS) with Elliott, a U.S.based private equity fund. The Ministry of Justice plans to review the award and then decide whether to pursue additional objection procedures. On the 30th of last month, the remanded arbitration tribunal ruled that the South Korean government must pay Elliott about $48.49 million in principal compensation plus late interest. Including litigation costs, the government's burden amounts to about $113 million, or roughly 153 billion won. This case stemmed from Elliott's claim that the government intervened in the National Pension Service's exercise of voting rights during the 2015 merger of Samsung C&T and Cheil Industries. Elliott filed the ISDS in 2018 under the KoreaU.S. FTA, arguing that it suffered losses because government intervention caused its stock value to fall. The remanded arbitration tribunal 인정했다 the causal link between the government's intervention and Elliott's losses. However, the government has not ultimately lost the case yet. The Ministry of Justice said it will review possible followup procedures, such as an action to vacate the award, correction, or a request for an additional award.