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South Korea Ordered to Pay $32 Million in Samsung Merger Dispute”

 |  April 11, 2024

The Ministry of Justice in South Korea announced on Thursday that the country has been directed to pay New York hedge fund Mason Capital Management more than $32 million. This ruling by the Netherlands-based Permanent Court of Arbitration (PCA) stems from a dispute related to the 2015 merger of two Samsung affiliates.

Mason Capital had initially claimed $200 million in damages, citing grievances arising from the merger between Samsung C&T and Cheil Industries. The hedge fund alleged that government influence, particularly by South Korea’s largest pension fund, the National Pension Service (NPS), had affected the decision-making process. The approval of the $8 billion merger was a central point of contention, with Mason Capital arguing that its investors suffered as a result.

Read more: Korea’s Antitrust Regulator Orders Samsung to Rectify Business Interference Practices

Although Mason Capital’s claim was substantial, the PCA only partially accepted their argument. Despite this, the court ordered South Korea to pay Mason Capital approximately $32 million, significantly less than the initially claimed amount. In addition to the $32 million award, the PCA also mandated the South Korean government to pay Mason Capital around $11 million in fees and interest.

This ruling echoes a similar case involving U.S. hedge fund Elliott, where the PCA had previously ordered South Korea to pay approximately $108.5 million. Both cases originate from the same Samsung merger, indicating a broader legal battle surrounding the corporate deal.

In response to the ruling, the South Korean Ministry of Justice stated that it would provide further analysis of the decision and outline future plans. However, Mason Capital has not issued an immediate comment regarding the outcome.

Source: Investing