Government Pays 74.6 Billion Won Compensation to Mason for 'Samsung Merger Opposition'

[Financial News] The government has paid compensation and delayed interest to the American private equity fund Mason, which suffered losses due to the merger of Samsung C&T and Cheil Industries, following an international investment dispute settlement (ISDS) ruling.
The Ministry of Justice announced on the 29th that it had withheld approximately 15.8 billion won in taxes from Mason's ISDS arbitration award and paid the remaining amount of approximately 74.6 billion won.
Mason, a shareholder of Samsung C&T, claimed that the Korean government pressured the National Pension Service to vote in favor of the merger of Samsung C&T and Cheil Industries, resulting in a stock price drop and a loss of approximately 200 million dollars, and filed an ISDS in September 2018.
In April last year, the arbitration tribunal partially accepted Mason's claims and ruled that the Korean government should pay Mason approximately 32 million dollars and a 5% delay interest from July 2015.
In response, the government filed a lawsuit in July of the same year with the Singapore court to cancel the arbitration award, but the court concluded that there was no problem with the arbitration award that held the Korean government liable for damages. As the government abandoned the appeal, the compensation plan was finalized as it was.
Subsequently, the government negotiated with Mason to pay the remaining amount of 74.6 billion won after taxing approximately 15.8 billion won, and Mason withdrew the enforcement lawsuit filed in the US court.
The Ministry of Justice stated, "We successfully concluded the negotiation process, which could have escalated into forced execution on state assets, thereby preventing further disputes," and explained, "Even if Mason objects to the taxation, it was agreed to resolve it according to domestic laws and procedures, realizing the government's legitimate taxation rights."
Furthermore, "We plan to conduct a thorough review of follow-up measures according to domestic laws to ensure that national taxes are not wasted," it added.

jisseo@fnnews.com Minji Seo Reporter