South Korea has lost its appeal against a ruling that ordered the country to pay more than $100m to US hedge fund Elliott Management, according to a report by Reuters. The dispute centres on the 2015 merger of two Samsung affiliates.

Last year, the Netherlands-based Permanent Court of Arbitration ruled that South Korea pay approximately $108.5m, covering damages, interest and legal fees, a decision the South Korean government subsequently appealed the decision at London's High Court, contending that the PCA lacked jurisdiction under a US-South Korea free trade agreement. On Thursday, the High Court rejected South Korea's appeal.

Elliott Management has welcomed the court's decision, stating it was “the proper outcome based on well-established principles of English law”.

The lawsuit by Elliott stemmed from the South Korean National Pension Service's approval of an $8bn merger between Samsung C&T and Cheil Industries, in which Elliott was a minority shareholder.

This 2015 merger has also led to other legal actions, including a similar case brought by New York hedge fund Mason Capital Management. In April, Mason Capital Management was awarded about $32m plus interest. Additionally, separate criminal proceedings in South Korea related to the merger have taken place.