South Korea ordered to pay $113 million to Elliott over Samsung merger

An arbitral tribunal constituted under the U.S.-Korea Free Trade Agreement has issued a supplemental award reaffirming the Republic of Korea’s liability to Elliott Investment Management L.P. The ruling concerns the corrupt manipulation of a shareholder vote to approve the 2015 merger between Samsung C&T and Cheil Industries.

The tribunal found that the Republic of Korea breached the treaty when the Presidential Blue House and the Ministry of Health and Welfare directed the National Pension Service (NPS) to approve the merger. The tribunal concluded that, without this unlawful intervention, the NPS would have voted against the merger, which caused substantial damages to Elliott as a minority shareholder of Samsung C&T.

The total relief granted to Elliott now amounts to approximately US $113 million, covering damages, interest, and legal fees. This figure includes an additional US $18.9 million resulting from proceedings the tribunal deemed unnecessary and caused by the Republic of Korea’s challenges to the original June 2023 award.