Arbitral Tribunal Reaffirms South Korea's Liability in Samsung Merger Case
An arbitral tribunal has reaffirmed the Republic of Korea’s (ROK) liability for breaching the U.S.-Korea Free Trade Agreement by corruptly influencing a shareholder vote to approve the controversial 2015 merger between Samsung C&T and Cheil Industries. The supplemental award, issued on September 30, 2026, increased Elliott Investment Management’s compensation from $94 million in June 2023 to approximately $113 million, including damages, interest, legal fees, and the ROK's own costs of litigation. The ruling came after the ROK challenged the original award on a technical jurisdictional basis. The English Court referred the case back for clarification regarding whether Elliott’s losses were directly caused by the Korean government regardless of the National Pension Service’s (NPS) legal status. The Tribunal confirmed that, without unlawful intervention from the Blue House and Ministry of Health and Welfare, the NPS would have opposed the merger. Elliott has called on South Korea to honor the award as interest continues to accrue at a rate exceeding $10,000 per day. The firm argues that resolving this case could help restore investor confidence in Korean capital markets by addressing systemic issues like chaebol favoritism and weak shareholder rights.
Topics: corruption free trade agreement international trade investment dispute