Seoul: The Permanent Court of Arbitration in the Netherlands has ruled that South Korea must pay US$53.59 million, along with interest, to the U.S.-based hedge fund Elliott Investment Management. This decision concludes a protracted dispute over a contentious merger between two units of Samsung Group.

According to Yonhap News Agency, the international tribunal's verdict was part of an investor-state dispute settlement suit initiated by the New York-based activist fund in 2018. Elliott Investment Management had initially sought a compensation of $770 million, alleging that the merger, which was backed by the South Korean government, was detrimental to its investment interests.

The arbitration centered on allegations that the merger disproportionately benefited the controlling shareholders of Samsung Group, disadvantaging minority shareholders, including Elliott. The case drew significant attention due to its implications for corporate governance and foreign investor rights in South Korea.

This ruling marks a significant conclusion to years of legal battles and discussions surrounding the merger, highlighting the challenges faced by foreign investors in South Korea's complex corporate landscape. The decision also underscores the role of international arbitration in resolving cross-border investment disputes.