Arbitration South Korea

Elliott Associates Awarded US$113 Million in Korea-US FTA Arbitration

By ADR Journal Editorial Desk Published 1 source Arbitration Investment Disputes South Korea Treaty Disputes Uncitral South Korea

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TL;DR

  • Elliott Associates won an investment treaty arbitration under the Korea-US Free Trade Agreement.
  • The tribunal confirmed damages of approximately US$48.49 million plus interest and costs.
  • Jurisdictional challenges in English courts led to a remitted phase, after which the award was affirmed.
  • The estimated total amount payable to Elliott is around US$113 million.

Overview

Elliott Associates was awarded approximately US$48.49 million in damages, plus interest and costs, by an arbitral tribunal operating under the Korea-US Free Trade Agreement. The case concerned the 2015 merger of Samsung C&T and Cheil Industries. Following a jurisdictional challenge by the Republic of Korea, English court proceedings led to a remitted phase, where the tribunal ultimately confirmed the award, bringing the estimated total to around US$113 million.

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What Happened

Elliott Associates initiated an investment treaty arbitration against the Republic of Korea in 2018 under the Korea-US Free Trade Agreement, after a controversial 2015 merger between Samsung C&T and Cheil Industries.

The case proceeded under the 2013 UNCITRAL Arbitration Rules with its seat in London.

In June 2023, the tribunal awarded Elliott approximately US$48.49 million in damages.

The Republic of Korea challenged the award on jurisdictional grounds in the English courts under section 67 of the Arbitration Act 1996.

The Commercial Court, in a 2026 decision, upheld most of the tribunal's jurisdictional findings but remitted one issue back for further consideration.

Following remitted proceedings, the tribunal confirmed the original award and determined interest and costs, with Elliott estimating the final amount at around US$113 million.

Three Crowns, supported by Kobre & Kim and KL Partners, represented Elliott Associates throughout the arbitration and related court proceedings.

Context

The dispute arose out of alleged unfair treatment following the 2015 merger of Samsung C&T and Cheil Industries, which Elliott Associates contended was detrimental to its investment.

The challenge by the Republic of Korea in the English courts underscores the procedural complexity of enforcing and challenging international arbitral awards.

Why It Matters

  • The case confirms a substantial arbitral award in favor of an investor under a major free trade agreement.
  • It illustrates the complexity and duration of high-value treaty arbitrations, especially when subject to parallel court review.
  • The outcome highlights the participation of leading legal teams and the application of English arbitration law in reviewing jurisdiction.

Sources

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