Int'l tribunal dismisses Iranian investor's 770 bln-won claim against Seoul

Seoul's international arbitration body has dismissed a 770 billion-won ($566 million) damages claim brought by an Iranian investor, members of the Dayyani family, against the South Korean capital. The Permanent Court of Arbitration in The Hague ruled in favor of South Korea in 2021, in a case stemming from a failed takeover attempt by the Dayyanis of Daewoo Electronics.

The panel ordered the Dayyanis to pay South Korea around 4 billion won for legal costs and 800 million won in administrative fees. The dispute began in 2015 when the Dayyanis, a major shareholder in Entekhab Industrial Group, challenged South Korea's state-run Korea Asset Management Corp. for canceling a contract to sell a stake in Daewoo Electronics in 2011.

Following a previous arbitration in 2018, Seoul was ordered to pay the Dayyanis 73 billion won plus interest. The latest claim, filed in October 2021, cited the need for approval from the U.S. Office of Foreign Assets Control (OFAC) as the reason for the delayed payment. Seoul argued that the OFAC approval was necessary given the U.S. sanctions against Iran and the global economic climate, and the PCA panel agreed, stating that Seoul did not discriminate against the Dayyanis in this matter.