Korea accepts int'l arbitration in favor of Elliott in Samsung merger case

Korea will accept an international arbitration ruling in favor of U.S. hedge fund Elliott Investment Management over the 2015 merger of two Samsung affiliates, the justice ministry said Wednesday. The ministry decided not to file a suit seeking a cancellation of last month's ruling, which ordered Korea to pay about 153 billion won ($114 million) in damages plus interest to Elliott. Elliott originally filed the case in 2018, seeking compensation over losses from the controversial merger between Samsung C&T and Cheil Industries. The U.S. hedge fund, which was a minority stakeholder of Samsung C&T, argued unfair mediation by the Korean government in the merger's approval. An international tribunal ruled in favor of Elliott in 2023, but the Korean government took the case to the High Court in London. It was eventually returned to the international tribunal for review in March. In the remanded ruling on Sept. 30, the tribunal recognized a causal relationship between Seoul's intervention for the approval of the merger and losses to Elliott.