Finance
South Korea wins UK challenge to arbitration ruling in Samsung merger case
Published by Global Banking & Finance Review®
Posted on February 23, 2026
2 min readLast updated: February 23, 2026
Quick Summary
The UK High Court partially set aside an arbitration award against South Korea in Elliott’s case over the 2015 Samsung C&T–Cheil merger, overturning findings tied to the NPS vote and sending other claims back to the tribunal.
UK Court Backs South Korea in Challenge Over Samsung Merger Arbitration
Appeal Outcome and Next Steps
LONDON, Feb 23 (Reuters) - South Korea on Monday partially won its challenge to an arbitration award in its long-running dispute with U.S. hedge fund Elliott over the 2015 merger of two Samsung affiliates.
Background: PCA Award and NPS Vote
The South Korean government was ordered to pay Elliott around $100 million by the Netherlands-based Permanent Court of Arbitration in 2023.
Elliott had sued over the role played by South Korea's National Pension Service in approving the $8 billion merger between Samsung C&T, in which Elliott was a minority stakeholder, and Cheil Industries.
Appeal Path Through UK Courts
South Korea sought to challenge the tribunal's decision at London's High Court, arguing that the tribunal did not have jurisdiction under a free trade agreement with the U.S., but its case was rejected.
Jay Y. Lee Cleared Hours Earlier
The Court of Appeal, however, allowed South Korea's appeal last year and sent the case back to the High Court – just hours after Samsung's Chairman Jay Y. Lee was cleared by South Korea's top court.
High Court Ruling Details
Judge David Foxton on Monday overturned part of the arbitration award in relation to the actions of South Korea's National Pension Service in voting in favour of the merger of Samsung C&T and Cheil Industries.
Remittal to the Arbitration Tribunal
The judge added that Elliott's claim in relation to the actions of the administration of then-South Korean President Park Geun-hye should be remitted to the arbitration tribunal to be decided upon again.
Reactions from the Parties
The South Korean government said in a statement that the ruling was a "valuable victory". Elliott did not immediately respond to a request for comment.
Reporting Credits
(Reporting by Sam Tobin; additional reporting by Heekyong Yang in Seoul, Editing by Louise Heavens)
Key Takeaways
- •London’s High Court partially overturned the Elliott arbitration award linked to the National Pension Service’s vote on the Samsung C&T–Cheil merger.
- •Judge David Foxton remitted Elliott’s claim concerning actions of the Park Geun-hye administration to the tribunal for reconsideration.
- •The PCA had ordered South Korea to pay around $100 million in 2023; the court’s decision narrows the award’s scope.
- •The ruling follows a 2025 Court of Appeal decision that revived Korea’s jurisdictional challenge and sent the case back to the High Court.
- •The government called the outcome a valuable victory; Elliott has not immediately commented.
Frequently Asked Questions about South Korea wins UK challenge to arbitration ruling in Samsung merger case
1What is the main topic?
A UK High Court ruling that partially overturns an arbitration award against South Korea in Elliott’s case over the 2015 Samsung C&T–Cheil merger, with parts remitted to the tribunal.
2What did the court decide?
Judge David Foxton set aside portions related to the National Pension Service’s vote and remitted claims tied to the Park Geun-hye administration back to the arbitration tribunal.
3How much money is involved?
The PCA’s 2023 award required South Korea to pay roughly $100 million including damages, costs and interest; the High Court ruling narrows aspects of that award.
