London Court Dismisses Korea's Challenge Against the Elliott Arbitral Award

WEST PALM BEACH, Fla., Aug. 1, 2024 /PRNewswire/ -- Elliott Investment Management L.P. ("Elliott"), today issued the following statement:

On August 1, 2024, the High Court of England and Wales (the "English High Court") announced the dismissal of the Republic of Korea's ("ROK") application to set aside the US $48.5 million Arbitral Award made in favor of Elliott Associates, L.P. in June 2023. With costs and interest, the ROK owes Elliott more than US $100 million for its violation of the U.S.-ROK Free Trade Agreement. After only a day and a half of a planned three-day hearing held in London in late July, Mr. Justice Foxton ruled in a 28-page decision that the ROK's application did not satisfy the threshold requirements of the jurisdictional challenge allowed under section 67 of the Arbitration Act of 1996. Interest on the Award continues to accrue at a rate of more than US $10,000 every day. 

Elliott believes the English High Court's well-reasoned judgment is the proper outcome based on well-established principles of English law, the English courts' pro-arbitration approach and the unsustainable overreach of the ROK's challenge.

The ROK's counsel has indicated during the court hearing that it will appeal the decision to the Court of Appeal. Elliott is unsurprised but once again disappointed by the ROK's continued refusal to honor the Award, especially in light of the English High Court's comprehensive judgment. This protracted litigation continues to impose self-inflicted damage on the ROK and its taxpayers, given the mounting interest and further potential cost liability arising from appeal. We also question the ROK's apparent desire to replay the past misconduct of the highest ROK officials and entities, which undermined the reputation of Korea's market for investors. By refusing to accept responsibility for its misconduct, the ROK keeps alive the doubt investors have about the fairness and honesty of Korea's markets.

The dismissal of the challenge at the threshold before reaching any of the merits of the ROK's challenge followed Mr. Justice Butcher's July 11, 2024, denial of the ROK's application to adduce expert evidence. Mr. Justice Butcher found that the proffered expert evidence was not reasonably required to resolve the proceedings and that it would not be of material assistance to the court. Mr. Justice Butcher further ordered that the ROK should pay Elliott's costs relating to the application. 

Elliott encourages the ROK to reconsider its plan for appeal and to recognize what is truly in the best interests of its taxpayers and its own reputation. The current path will only negate the ROK's efforts to turn the page on past problems of corruption and send mixed messages to the investing community. Such stubborn and ultimately fruitless resistance will only counter its efforts to fight the "Korea Discount."

More information regarding this matter can be found on the website of the Permanent Court of Arbitration by following the link below:

https://pca-cpa.org/en/cases/197/ 

About Elliott

Elliott Investment Management L.P. (together with its affiliates, "Elliott") manages approximately $65.5 billion of assets as of December 31, 2023. Founded in 1977, it is one of the oldest funds under continuous management. The Elliott funds' investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm.

Media Contacts:

U.S.
Casey Friedman
Elliott Investment Management L.P.
T: (212) 478-1780
[email protected] 

London
Eddie Livingstone-Learmonth
Camarco
T: +44 7900 121 128
[email protected] 

Seoul
Jin Kim
Nine Crosby
T: +82 (2) 866 9455
[email protected] 

SOURCE Elliott Investment Management L.P.