S. Korea not to appeal court ruling on $32m payout to US hedge fund Mason

South Korea has decided not to appeal a Singaporean court's rejection of its lawsuit seeking to annul an investor-state dispute settlement ruling that ordered it to pay compensation to US hedge fund Mason Capital over losses from Samsung's controversial 2015 merger of two units, the Ministry of Justice said Friday.

Following the decision, the Korean government will have to pay Mason approximately 86 billion won (about $60.5 million), including interest on delay.

The case dates back to September 2018, when Mason filed the ISDS suit, claiming that it sustained losses of approximately $200 million after the Korean government exerted undue pressure on the National Pension Service, a major shareholder of Samsung C&T, to vote in favor of its merger with Cheil Industries.

In April last year, the Permanent Court of Arbitration in the Netherlands ruled in favor of the New York-based fund, ordering Korea to pay compensation of $32 million and a delay charge.

In response, the Korean government filed a lawsuit with the Singapore International Commercial Court in July of the same year to annul the PCA arbitration ruling. But the Singaporean court dismissed the lawsuit on March 20.

"After extensive discussions with law firms and external experts, the government has decided not to appeal the Singaporean court's March 20 ruling," the justice ministry said, explaining the decision was based on various circumstances, including additional costs and interest on delays.

The timing of payment will reportedly be discussed between the Korean government and Mason.

The exact sum to be paid to Mason may change slightly depending on the applicable exchange rate, ministry officials said. (Yonhap)