Korea’s sovereign fund to consider canceling contract with Elliott
[THE INVESTOR] Korea’s sovereign wealth fund will consider canceling a contract with Elliott Management, its head said on May 17, citing conflicts of interest after the US hedge fund launched a legal dispute with the Korean government over a merger of two Samsung units.
Choi Hee-nam, chief executive of the US$134.1 billion sovereign fund, told reporters that Korea Investment Corporation is closely monitoring the legal dispute between Elliott and the Korean government.
KIC invested US$50 million into a fund managed by Elliott under the contract, Choi said.
“The sponsor of KIC is the (Korean) government, and Elliott presented something to the government,” Choi said, referring to the legal dispute over the merger of two Samsung units in 2015.
In a statement, Elliott has said it is seeking to negotiate with Korea over compensation for the US fund’s damages stemming from the former administration‘s “unlawful intervention” in the merger of Samsung C&T and Cheil Industries.
Under the bilateral free trade deal between Korea and the United States, a company from one country can take a legal action against the counterpart’s government over investment damages.
By Song Seung-hyun and newswires (firstname.lastname@example.org)