Schindler Group's 325 Billion Won ISDS Case: Government Victory Finalized

[Financial News] The Government of the Republic of Korea has secured a complete victory in a 325 billion won international investment dispute (ISDS) case brought by elevator company Schindler Group. The victory became final after Schindler Group did not file an action to set aside the arbitral award.
The Ministry of Justice said on the 28th that Schindler Group had not filed an action to set aside the arbitral award with the Paris Court of Appeal within the statutory filing period.
As a result, Schindler Group's compensation claim worth approximately 325 billion won was dismissed in its entirety. The arbitral award ordering Schindler Group to pay the Government of the Republic of Korea approximately 9.6 billion won in legal costs was also finalized as issued.
The government had previously announced on March 14 that the arbitral tribunal had unanimously ruled in favor of the Government of the Republic of Korea in full in the ISDS case brought by Schindler Group. The tribunal dismissed all of Schindler Group's compensation claims and ordered the company to pay approximately 9.6 billion won in legal costs incurred by the Korean government.
The case began when Schindler Group initiated arbitration against the Korean government, arguing that the investigations and reviews conducted by the Fair Trade Commission, the Financial Services Commission (FSC), and the Financial Supervisory Service were insufficient. Schindler Group initially claimed approximately 490 billion won and ultimately sought approximately 325 billion won ($216.9 million) in compensation.
According to the Ministry of Justice, the arbitral tribunal determined that the measures taken by the Fair Trade Commission, the FSC, and the Financial Supervisory Service constituted legitimate law enforcement. It found that the measures were neither arbitrary nor discriminatory and involved neither bad faith nor an abuse of authority.
Meanwhile, the government recently prevailed in proceedings to set aside an award in another ISDS case. The Ministry of Justice said on the 13th that the annulment committee of the International Centre for Settlement of Investment Disputes (ICSID) had fully rejected an application by Chinese national Min Fengzhen to set aside the award in an ISDS case brought against the Government of the Republic of Korea.
 



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