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
cFriedman@elliottmgmt.com
London
Eddie Livingstone-Learmonth
Camarco
T: +44 7900 121 128
Edward.Livingstone-Learmonth@camarco.co.uk
Seoul
Jin Kim
Nine Crosby
T: +82 (2) 866 9455
jinkim@ninecrosby.com
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SOURCE Elliott Investment Management L.P.