South Korea will not pursue a further legal challenge against an arbitration award in favour of Elliott Associates, according to Global Arbitration Review, bringing a long-running dispute over the 2015 Samsung C&T merger closer to a conclusion.

The dispute centres on Elliott’s opposition to the merger between Samsung C&T and Cheil Industries, which the US hedge fund argued was influenced by government interference that damaged its investment. The case subsequently resulted in an international arbitration award against South Korea.

The government’s decision to abandon further challenges marks a significant development in the dispute, which has involved multiple legal proceedings over the enforceability of the award.

The case highlights the risks governments face when state intervention affects foreign investors, while demonstrating how investment treaty arbitration can provide a route to compensation for funds pursuing cross-border investment disputes.