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

Korea has agreed to abide by an international arbitration decision that favors U.S. hedge fund Elliott Investment Management in the 2015 merger of two Samsung subsidiaries. The Ministry of Justice announced the decision on Wednesday, declining to pursue an appeal against the ruling that ordered Korea to pay around 153 billion won ($114 million) in damages and interest to Elliott.

Elliott initially brought the case in 2018, claiming unfair mediation by the Korean government in the merger of Samsung C&T and Cheil Industries. The U.S. investment firm argued that Seoul's involvement in the merger approval process caused financial losses. An international tribunal ruled in favor of Elliott in 2023, but the Korean government appealed the case to the High Court in London.

The case was ultimately returned to the international tribunal for further review in March. On September 30, the tribunal acknowledged a causal link between Seoul's intervention in the merger approval process and Elliott's financial losses, confirming the ruling from September.