The South Korean government has set a task force to handle the unfolding legal dispute with US private equity fund Elliott as the US firm is demanding a huge financial compensation from the government, according to related ministries on Friday.
The task force of government officials from the Ministry of Strategy and Finance, the Ministry of Foreign Affairs and the Ministry of Trade, Industry and Energy and so forth is holding working-level meetings before the government starts negotiating with the US fund on the settlement.
Elliott is demanding the South Korean government pay over $670 million in compensation for its loss from the merger of two Samsung units in 2015, according to the Ministry of Justice.
According to the notice of intent sent by Elliott on April 13, the US fund asked the Korean government for a settlement over damages from its investment in Samsung C&T after the merger with Cheil Industries.
Elliot said “an amount to be quantified, and currently estimated to be not less than $670 million, as well as interest, costs and other such relief as a tribunal deems appropriate” in the document unveiled by the ministry.
(Yonhap)
The US firm is expected to file an investor-state dispute settlement case at the International Centre for Settlement of Investment Disputes, if the Korean government disagrees to the settlement within 90 days.
The Justice Ministry is likely to contact Elliott soon to confirm the US firm’s claim for damages.
In an earlier statement it said, “Elliott is seeking to negotiate with the Republic of Korea regarding compensation for Elliott’s damages arising from the former administration’s unlawful intervention in the merger of Samsung C&T and Cheil Industries.”
Elliott also mentioned in the statement that the Korean government has committed to compensating investors who are victimized by breaches of the Korea-US Free Trade Agreement.
Meanwhile, Korean prosecutors are investigating Elliott’s possible violation of the country’s capital market act that requires shareholders with more than a 5 percent stake to make regulatory filings about the stake ownership.
By Song Su-hyun (
song@heraldcorp.com)