finance
Entered 2024.04.11 20:10 Modified 2024.04.11 21:40
$200 million dispute related to ‘Samsung C&T merger’
Quote 16% of bill amount
Photo = Yonhap News An international arbitration organization ruled that the Korean government must compensate the American hedge fund Mason Capital about 43.8 billion won. Mason Capital filed for international arbitration through Investor-State Dispute Settlement (ISDS), claiming that it suffered losses due to the Korean government’s unfair intervention in the process of approving the merger of Samsung C&T and Cheil Industries.
The Ministry of Justice announced on the 11th that the arbitral tribunal of the Permanent Court of Arbitration (PCA) partially cited Mason’s claims and ordered the Korean government to pay $32,030,876 and interest for delay. Based on today’s exchange rate (1368.5 won per dollar), it is approximately 43.8 billion won. Of the approximately $200 million (approximately 273.7 billion won) in damages claimed by Mason Capital, approximately 16% was cited. Mason Capital claimed that it suffered losses due to the Korean government’s unfair intervention in the process of approving the merger between Samsung C&T and Cheil Industries. At the time of the merger, Mason held a 2.18% stake in Samsung C&T. In September 2018, an ISDS worth $200 million (approximately 272.7 billion won) was submitted to the government.
In the ISDS case previously filed by the American hedge fund Elliott Management, the Permanent Court of Arbitration (PCA) last year ruled that the Korean government should pay $53,586,931, citing some of Elliott’s claims. The Mason case was called a look-alike case because it dealt with virtually the same issues as this case.
The government is expected to decide whether to file a lawsuit to cancel the decision in the Mason case by reviewing the results of today’s decision, as well as the contents of the previous arbitration award in the Elliott case and the rulings of domestic courts. The Ministry of Justice said, “We plan to distribute explanatory materials later on the results of the judgment analysis and future plans.”
Hankyung.com reporter Jinyoung-gi [email protected]
2024-04-11 11:10:51
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