Seoul:An international arbitration panel has dismissed a 770 billion-won (approximately US$566 million) claim by an Iranian investor against South Korea. The claim was related to a failed acquisition of a South Korean company, according to the justice ministry.

According to Yonhap News Agency, the case was brought by six members of Iran's Dayyani family in 2021. They sought compensation for the delayed transfer of funds following a previous arbitration case. The panel under the Hague-based Permanent Court of Arbitration (PCA) ruled in favor of South Korea.

The tribunal ordered the Dayyanis to pay about 4 billion won to South Korea for legal expenses and approximately 800 million won in administrative fees. The dispute dates back to 2015 when the Dayyanis, who are major shareholders of Entekhab Industrial Group, initiated arbitration after South Korea's state-run Korea Asset Management Corp. canceled a contract to sell a significant stake in Daewoo Electronics to Entekhab in 2011.

In a 2018 arbitration, Seoul was ordered to pay 73 billion won plus interest to the Dayyanis over the failed Daewoo Electronics takeover. This ruling was finalized in December 2019, and the payment was made by Seoul in April 2022.

The Dayyanis filed a new claim in October 2021, demanding 770 billion won for the delayed payment. Seoul explained the delay was due to the need for approval from the U.S. Office of Foreign Assets Control (OFAC).

The PCA panel concluded that Seoul did not discriminate against the Dayyanis with the delay, stating that the requirement for OFAC approval was justified given the U.S. sanctions against Iran and the global economic conditions.