The New York hedge fund, founded by billionaire Paul Singer, said in a statement Friday that it had submitted the dispute to arbitration and urged the South Korean government to pay compensation to protect the latter among international investors. The reputation of Elliott says that so far neither side has been able to solve the problem on its own.
'Like all major economies, South Korea clearly does not want to be considered hostile to foreign investors, especially when other Asia-Pacific economies are quickly becoming attractive alternatives,' Elliott said in a statement.
The South Korean government admitted that they received this notice of claim in another statement.
Elliott previously lost in the fight against the merger of Samsung's property and the first Maozhi, consolidating the founding family's control over the Samsung Group. With the support of the government-run National Pension Service, Samsung is weak. The advantage won the proxy vote. Elliott claimed that the South Korean government unfairly intervened in the deal, which led to a large-scale corruption scandal in South Korea.
Under the pressure of the president's office, the Korean National Retirement Fund stood on the side of Samsung, causing the head of the fund to be sentenced to jail. Elliott had a 7% stake in Samsung's property at the time, saying that because the previous government intervened to promote the merger, The company suffered huge losses.
As a result of this case, Samsung’s Vice President Li Zaijun was sentenced to probation by the Korean court. Former South Korean President Park Geun-hye was sentenced to 24 years in prison for accepting bribes and abusing his powers.
'Unfortunately, the previous government adopted a hostile attitude toward foreign investment, rather than accepting foreign investment to promote domestic innovation and maintain economic growth,' Elliott said on Friday.
Another investor in Samsung's property, American hedge fund Mason Capital Management, recently filed a notice with the South Korean government claiming $175 million.
Elliott urged the South Korean government to continue to fulfill its obligations to foreign investors, including paying damages, trying to prevent future violations, and taking measures to protect the Korean chaebol family at the expense of investors.
'Keeping an international reputation among investors is critical to attracting foreign investment and pushing South Korea towards greater prosperity,' the company said.
Earlier this year, Elliott fought another fight with Hyundai Motor Group in South Korea. In May, Hyundai Motors imposed a $8.8 billion restructuring plan under the pressure of the radical investment fund, marking the achievement of South Korean shareholder activism. An unprecedented victory.