Samsung Merger Opposition: Mason Ordered to Pay 43.8 Billion Won in Damages... 16% of Claim Approved

The South Korean government has been ordered by an international arbitration body to pay approximately 43.8 billion KRW to the US-based hedge fund Mason Capital in relation to the 'Samsung merger.'

On the 11th, the Ministry of Justice announced that the arbitral tribunal of the Permanent Court of Arbitration (PCA) partially upheld Mason's claims and ruled that the South Korean government must pay $32,030,876 plus interest for delay. This amounts to about 43.8 billion KRW.

This ruling accepts about 16% of the approximately $200 million in damages claimed by Mason. Mason filed an international arbitration through the International Settlement of Investment Disputes (ISDS) in September 2018, alleging that the South Korean government unfairly intervened during the approval process of the Samsung C&T and Cheil Industries merger, causing damages. At the time of the merger, Mason held a 2.18% stake in Samsung C&T.

This is the second international arbitration ruling recognizing the South Korean government's liability for compensation related to the Samsung merger. In June of last year, the PCA ruled that the South Korean government must pay $53,586,931 in an ISDS case filed by the US-based hedge fund Elliott Management on similar grounds. The government has appealed this ruling, citing 'jurisdictional violations' under the Korea-US Free Trade Agreement (FTA), and filed a cancellation lawsuit with the UK court, the seat of arbitration, in July last year.

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