Justice Minister Han Dong-hoon announces the government’s response to the Permanent Court of Arbitration’s order to pay nearly US$100 million in damages to hedge fund Elliott Investment Management in a news conference in Seoul, in this July 18, 2023, file photo. (Yonhap)
SEOUL, July 26 (Korea Bizwire) — The Ministry of Justice said Wednesday it will create a new organization dedicated to responding to international investment disputes involving foreign capital firms.
The ministry unveiled its plan to establish the tentatively titled International Legal Affairs Bureau as part of an upcoming organizational change, according to the official gazette.
The new bureau will play a role in preventing investor-state dispute settlement (ISDS) cases and strengthening the government’s capabilities to deal with relevant disputes and lawsuits, ministry officials said, noting eight officials will be assigned to the organization.
Ten ISDS cases have been filed against the South Korean government so far.
The government last week filed a suit to reverse the Permanent Court of Arbitration’s order to pay nearly US$100 million in damages to hedge fund Elliott Investment Management in a dispute stemming from the controversial 2015 merger of two Samsung Group affiliates.
It is also considering filing a lawsuit to cancel the International Centre for Settlement of Investment Disputes’ order to pay the U.S. private equity firm Lone Star Funds $216.5 million plus interest over its selloff of a local bank.
Additionally, the national government is waiting for decisions from five other ISDS suits involving South Korea.
(Yonhap)
