'Samsung C&T Merger Opposition' Mason ISDS Arbitration Award to Be Announced Today at 7 PM

Approximately $200 Million Investor Dispute Lawsuit

The result of the international investment dispute settlement procedure (ISDS) case filed by the US-based hedge fund Mason Capital, which held shares in Samsung C&T Corporation, against the South Korean government, involving approximately 270 billion KRW, will be announced on the 11th.

According to the Ministry of Justice, the arbitral tribunal of the Permanent Court of Arbitration (PCA) will deliver the ruling on the Mason case at 7 PM (Korean time) on the same day. A Ministry of Justice official stated, "We have been doing our best to respond since the Mason case began in 2018," and added, "We will continue to do our utmost to align with national interests even after the ruling is issued."

Mason filed an international arbitration claim through ISDS in September 2018, alleging that the Korean government unfairly intervened during the merger process of Samsung C&T Corporation and Cheil Industries, causing damages amounting to about 200 million USD (approximately 270.9 billion KRW). ISDS is a system that allows foreign investors to receive compensation through arbitration when they suffer damages due to the laws or policies of the host country.

At the time of the Samsung merger in 2015, Mason held 2.18% of Samsung C&T's shares. Mason opposed the merger, arguing that the merger ratio of 0.35 shares of Cheil Industries per one share of Samsung C&T was unfair from the shareholders' perspective.

Previously, in an ISDS case filed by the US-based hedge fund Elliott Management, the PCA ruled last year to order the Korean government to pay approximately 53.58 million USD (about 69 billion KRW based on the ruling) plus interest for delay, partially accepting Elliott's claims. This amounted to about 7% of the 770 million USD in damages Elliott sought. The Mason case deals with essentially the same issues as this case, and has been called a "similar" case.

This content was produced with the assistance of AI translation services.