South Korea Wins $196 Million Investment Dispute Against Chinese Investor

The Government of South Korea secured a final victory in an investor-state dispute after an ad hoc committee of the International Center for Settlement of Investment Disputes rejected an annulment request from Chinese investor Min Fengzhen. The dispute involved a claim valued at 264.1 billion won ($196 million) related to loans Min secured through Woori Bank for an office building project in Beijing via a company called Pi Korea.

An original tribunal first dismissed the claim in May 2024, concluding that the investment was part of an illegal scheme and was not protected under the investment treaty between South Korea and China. The annulment panel upheld this decision and ordered Min to pay approximately 1.51 billion won in legal costs plus interest.

The South Korean justice ministry stated the ruling reaffirms the principle that investments made in violation of domestic law are not entitled to protection under the investor-state dispute settlement system.