Arbitral Tribunal Reaffirms South Korea's Liability to Elliott for 2015 Merger Intervention
An arbitral tribunal has reaffirmed South Korea's liability to Elliott Investment Management for its intervention in the 2015 Samsung merger. The ruling orders South Korea to pay approximately $113 million.
An arbitral tribunal has reaffirmed South Korea's liability to Elliott Investment Management L.P. for corrupt intervention in the 2015 merger of Samsung C&T and Cheil Industries. The supplemental award, issued on September 30, 2026, under the U.S.-Korea Free Trade Agreement, directs the Republic of Korea (ROK) to pay Elliott approximately $113 million in damages, interest, and legal costs.
The original award in June 2023 found that the ROK breached the treaty by directing the National Pension Service (NPS) to approve the merger, which caused substantial damages to Elliott as a minority shareholder in Samsung C&T.
The ROK had challenged the award in an English court, but the case was remitted to the tribunal for clarification. The tribunal confirmed that the ROK's unlawful intervention caused Elliott's losses, stating that the NPS would have voted against the merger absent this intervention.
Elliott welcomed the tribunal's decision, urging the ROK to honor the award after more than 11 years since the breach. The firm noted that the ongoing interest accrual, exceeding $10,000 daily, adds to the burden on Korean taxpayers. Elliott also stated that the same conduct harmed Korean shareholders and pension holders, contributing to the "Korea Discount" on its capital markets.