South Korea wins investment treaty dispute with Chinese investor
The committee also ordered Min Fengzhen to pay about 1.51 billion won in costs after upholding the ruling that the investment was illegal.
- South Korea won a final ruling in a 264.1 billion won investor-state dispute on Sunday after the International Center for Settlement of Investment Disputes ad hoc committee rejected Chinese investor Min Fengzhen's annulment application on Saturday.
- The dispute originated from a 2007 Beijing office project where Min raised 380 billion won through Woori Bank loans. When the firm failed to repay, the bank sold collateral shares, prompting Min to lose an unsuccessful 2017 Supreme Court case.
- An arbitral tribunal dismissed the claim in 2024, ruling Min's share acquisition was part of an illegal scheme to secure loans. The damages claim was reduced from an initial 2 trillion won to about 264.1 billion won.
- Following the annulment rejection, the committee ordered Min to pay South Korea about 1.51 billion won in legal costs, plus 4.9 billion won previously mandated by the tribunal, with both figures including interest.
- Reaffirming that investments violating domestic law are not protected under the investor-state dispute settlement system, the ministry noted this case marks South Korea's first victory in a full hearing of an international investor claim.
13 Articles
13 Articles
The South Korean government has won a final victory in an international investment dispute (ISDS) case worth approximately 260 billion won filed against the government by a Chinese investor. As the investor’s motion for cancellation, filed in dissatisfaction with the previous ruling against them, was also dismissed, the original ruling in favor of the South Korean government has been confirmed. The Ministry of Justice [regarding] the Internation…
South Korea wins investment treaty dispute with Chinese investor
South Korea won a final ruling in a 264-billion-won ($197- million) investor-state dispute after a settlement panel rejected Chinese investor Min Fengzhen's challenge of a 2024 claim dismissal, the justice ministry said on Sunday.
(Seoul = Yonhap News) Reporters Park Jae-hyun and Choi Won-jung = In an international investment dispute (ISDS) filed against the South Korean government by a Chinese investor, a ruling that the government is not liable for compensation...
The South Korean government's victory has been finally confirmed in an international investment dispute worth approximately 2 trillion won filed by Chinese investor Mr. Min. The ICSID Cancellation Committee dismissed Mr. Min's request for cancellation and confirmed the government's legitimate enforcement of the law. With this decision, the South Korean government will recover 1.5 billion won in litigation costs, and it has been reaffirmed that i…
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