International Arbitration Team Successfully Defends the Korean Government in USD 200 Million ISDS Case Against U.S.-Based Private Equity Firm Mason

Lee & Ko successfully represented the Korean government in an investor-state dispute settlement (ISDS) proceeding initiated by the U.S.-based private equity firm Mason Capital L.P. and Mason Management LLC (collectively referred to as “Mason”). Lee & Ko’s International Arbitration team secured a favorable award for the Korean government, significantly limiting the liability to merely 16% of Mason’s original claim, which was worth approximately USD 200 million (around KRW 277 billion). 

This dispute dates back to the 2015 merger between two Samsung Group affiliates, Samsung C&T Corp. and Cheil Industries Inc. Mason, a shareholder of Samsung C&T at the time, alleged in arbitration that the Korean government had unlawfully intervened and pressured the National Pension Service (NPS) to vote in favor of the merger. Mason claimed this intervention deprived them of the potential benefits from their Samsung C&T shares and sought USD 200 million in damages against the Korean government.

This high-profile ISDS case has drawn considerable media attention in the field of international arbitration due to its substantial claim amount, the involvement of multiple civil and criminal court cases, and the complex and challenging nature of the dispute, which spanned over five years since its initial filing in 2018. This case also notably involved a significant debate over the principle of fair and equitable treatment under the Korea-US FTA. This monumental and successful defense, culminating in a landmark decision, underscores Lee & Ko’s exceptional expertise in arbitration, accumulated from handling and representing the Korean government and other investors in various ISDS cases, the team’s meticulous examination of extensive documents, close cooperation with foreign law firms, and advanced legal acumen and strategic prowess in addressing multiple issues.