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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] The South Korean government has won an investor–state dispute settlement (ISDS) case worth about 320 billion won ($320 million) filed by Swiss elevator manufacturer Schindler.
According to the Ministry of Justice on March 14, an arbitration tribunal at the Permanent Court of Arbitration (PCA) dismissed all claims filed by Schindler at 2:03 a.m. the same day.
The tribunal concluded that investigations conducted by Korean authorities, including the Financial Supervisory Service, were neither arbitrary nor discriminatory.
As a result of the ruling, the South Korean government avoided paying approximately 320 billion won in damages and will also be able to recover about 9.6 billion won in legal costs from Schindler.
Justice Minister Jung Sung-ho said the decision clearly confirms the principle that a state’s legitimate exercise of regulatory authority for public interest purposes must be respected under international law. He added that the ruling is significant because it distinguished a private shareholder dispute from an investor–state dispute and protected public funds.
Schindler filed the ISDS case in 2018, arguing that the Korean government had arbitrarily carried out supervisory and investigative duties during Hyundai Elevator’s capital increase and call-option transfer processes between 2013 and 2015, causing the company financial losses.
알파경제 Kim Jisun Reporter(stockmk2020@alphabiz.co.kr)
