South Korea has paid US hedge fund Mason Capital Management KRW74.6bn (approximately $54m), following a ruling by the Permanent Court of Arbitration (PCA) in a high-profile investor-state dispute settlement (ISDS) case linked to Samsung’s 2015 merger, according to a report by Yonhap.
The payment was confirmed by the country’s Ministry of Justice on Tuesday.
The dispute stems from Mason’s claim that it suffered losses of around $200m after the Korean government allegedly pressured the National Pension Service (NPS) – a key shareholder in Samsung C&T – to back its contentious merger with Cheil Industries, a move seen as consolidating control for the Samsung founding family.
Mason filed the ISDS suit in 2018, arguing that government interference undermined fair market practices and hurt minority shareholders. In April 2023, the PCA ruled in the hedge fund’s favour, awarding $32m plus additional interest for delayed payment.
South Korea sought to overturn the ruling through a challenge in the Singapore International Commercial Court, but the suit was dismissed earlier this year. The Seoul government subsequently decided not to pursue further appeals.
The final compensation figure includes interest and was paid net of a KRW15.8bn withholding tax, according to the Ministry of Justice.
