South Korea Ordered to Pay Elliott Investment $48 Million

A London-seated arbitration tribunal ordered the government of South Korea to pay Elliott Investment Management approximately $48.49 million plus interest. The ruling determined that the South Korean government caused losses for the U.S.-based fund through its involvement in the 2015 merger of Samsung C&T and Cheil Industries.

The merger was designed to secure control of the Samsung Group for chief Jay Y. Lee. Elliott, which held a minority stake at the time, argued that the National Pension Service was coerced into voting for the deal despite it being unfavorable. Elliott claims that total relief, including interest and legal fees, has reached roughly $113 million, with interest accruing at more than $10,000 per day.

The Ministry of Justice of South Korea stated it will review the award with experts before taking further action. Elliott has urged the government to comply with the ruling, asserting that the coerced vote harmed not only the fund but also Korean shareholders and pension holders for the benefit of the Lee family.