The Korean government has decided not to appeal a ruling by the Singapore International Commercial Court (SICC) in a significant Investor-State Dispute Settlement (ISDS) case. This decision, announced by the Ministry of Justice on the 18th, concludes the legal battle initiated by American private equity fund Mason on September 13, 2018. Mason alleged undue government pressure on the National Pension Service (NPS) influenced its vote in favor of the 2015 Samsung C&T-Cheil Industries merger, causing financial losses for the fund.
In April 2023, the Permanent Court of Arbitration (PCA) partially upheld Mason’s claims, ordering the Korean government to compensate Mason $32,038,076 plus delayed interest calculated at 5% annually compounded from July 17, 2015. This represented approximately 16% of Mason’s claimed $200 million loss. The Korean government subsequently filed a lawsuit at the SICC on July 11, 2023, to annul the PCA’s decision. The SICC dismissed this request on the 20th of last month.
Following consultations with legal experts, the Ministry of Justice announced the decision not to appeal the SICC’s dismissal. “The government considered legal principles and factors such as additional costs and delayed interest,” a Ministry spokesperson stated. “We will continue to prioritize national interest.” Based on the timing of the SICC ruling, the total payment, including delayed interest, is estimated to be approximately 86 billion won, though this may vary depending on the exchange rate.
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