Arbitral Tribunal Reaffirms Korea's Liability to Elliott for Corrupt Intervention in 2015 Samsung Merger
Elliott awarded approximately US $113 million
Elliott hopes the ROK will finally honor the Award as interest continues to accrue, adding to the Korean taxpayers' bill
WEST PALM BEACH, Fla., Sept. 30, 2026 /PRNewswire/ -- Elliott Investment Management L.P. ("Elliott"), today issued the following statement:
On Sept. 30, 2026, the arbitral tribunal (the "Tribunal") constituted under the U.S.-Korea Free Trade Agreement (the "Treaty") issued a supplemental award reaffirming that the Republic of Korea's ("ROK") corrupt manipulation of a shareholder vote to approve the controversial Samsung merger in 2015 breached the Treaty and caused Elliott's losses. The Tribunal reinstated the relief previously awarded to Elliott in June 2023 and included the additional costs of the unnecessary proceedings caused by the ROK, granting Elliott a relief now amounting to approximately US $113 million representing damages, interest, and legal fees and costs. This represents an increase of US $18.9 million (including the ROK's own legal costs) to the Korean taxpayers' bill caused by the ROK's non-substantive, not credible, dilatory challenges to the Award.
The Tribunal's original award (the "Award"), issued in June 2023, found that the ROK breached the Treaty when its Presidential Blue House and the Ministry of Health and Welfare directed the National Pension Service's ("NPS") decision to approve the 2015 merger of Samsung C&T and Cheil Industries. As a result of the merger, Elliott suffered substantial damages as a minority shareholder of Samsung C&T.
The ROK challenged the Award in the English Court on a purely technical jurisdictional basis. The English Court in turn "with reluctance" remitted the case to the Tribunal to clarify whether the ROK had caused Elliott's losses independently of the NPS's legal status. In response, the Tribunal found that, but for the ROK's unlawful intervention, the NPS would have voted against the merger of Samsung C&T and Cheil Industries. The ROK had indeed caused those losses regardless of the NPS's legal status.
Elliott welcomes the Tribunal's decision and hopes the ROK will finally honor the Award. Its numerous attempts to challenge and subvert the Award have now proven futile. More than 11 years have passed since the ROK's breach and more than three since the Tribunal first found the ROK liable. Interest has been accruing for all these years and will continue to accrue at a rate of more than US $10,000 every day. Every further move of resistance, including reliance on evidence tainted by its own breach, which the Tribunal rejected, adds to the substantial burden already borne by Korean taxpayers for the conduct of government officials whom Korea's own prosecutors investigated and Korea's own courts convicted.
Korean shareholders and pension holders were also harmed by the same conduct that victimized Elliott, as the NPS's coerced vote allowed the impoverishment of Korean citizens for the sake of the enrichment of the Lee family. Resolving this matter would allow the ROK to close a chapter of chaebol coddling that exemplifies why the ROK's capital market suffers from the "Korea Discount." Moving forward as a venue where shareholders' rights are respected – which we believe is the path Korea is trying to take – will allow Korea to build a reputation as the fair, transparent, reliable and developed capital market that its citizens and market participants deserve.
More information regarding this matter can be found on the website of the Permanent Court of Arbitration by following the link below:
https://pca-cpa.org/en/cases/197/
About Elliott
Elliott Investment Management L.P. (together with its affiliates, "Elliott") manages approximately $80.3 billion of assets as of June 30, 2026. Founded in 1977, it is one of the oldest funds under continuous management. The Elliott funds' investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm.
Media Contacts:
London
Alice Best
Elliott Advisors (UK) Limited
T: +44 20 3009 1715
abest@elliottadvisors.co.uk
Seoul
Jin Kim
Nine Crosby
T: +82 (2) 866 9455
jinkim@ninecrosby.com
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