I. PRELIMINARY STATEMENT OF INTENT
1. In accordance with Chapter 11 of the U.S. -- Korea Free Trade Agreement (the "KORUS FTA"), which went into effect on March 15, 2012 following ratification, [...] submits this Notice of Intent to Submit Dispute to Arbitration, as required by Article 11.16.2 of the KORUS FTA, and hereby gives you notice of the existence of a dispute between [...] on the one hand, and the Republic of Korea ("Korea"), on the other.
2. [...] hereby submits this Notice of Intent to Submit Dispute to Arbitration of his claim arising out of breaches of Chapter 11, Section A-B of the KORUS FTA. MED is a citizen of the United States and submits this Notice of Intent to Submit Dispute to Arbitration averring that Korea has breached its obligations under KORUS FTA Chapter 11, Section A, specifically Articles 11.5 and 11.6 and that [...] incurred loss or damage by reason of, or arising out of, said breaches.
3. Not only did Korea subject [...] foreign investment to expropriation, hut now is forcing him to accept an appraisal value that is unfair and way below the current market price.
4. It should come as no surprise to Korea that the destruction of a foreign investor's investment, without the payment of prompt, adequate, and effective relief is impermissible under international law. Notably, such treatment of a foreign investor is in plain violation of Article 11.6 of the KORUS FTA, which is the basis of which [...] intends to bring his arbitration claims against Korea.
5. [...] intends to bring this arbitration in a well-established and transparent forum, such as the International Center for Settlement of Investment Disputes (the "TCSID") in Washington, D.C., which is possible since Korea and the United States are parties to the Convention on the Settlement of Investment Disputes between States and Nationals of other States (the "ICSID Convention").
6. On the basis of Korea's breach of the KORUS PTA, our client is entitled to no less than $4,224,628.00 USD in damages in compensation on the basis of direct loss.
7. Although Korea claims that it respects the rule of law, and although it promotes itself as a safe destination for foreign investment, its treatment of [...] investment in Korea conclusively shows the perils of investing in the country. No one, and especially not a foreign investor contributing to the economic development and well being of Korea and its citizens, should be subjected to such treatment.
8. To date, a total of seven (7) Investor State Dispute Settlement cases have been filed against Korea through the United Nations, among which 57 percent of them were initiated recently, since 2018.1 This shows a sharp increase from two (2) cases in 2015.
9. We expect that the circumstances of [...] expropriation of his investment, even after his expression of objection, will, at the very least, serve as a cautionary tale for businessmen considering investing in Korea, and we expect any arbitral proceedings to be followed with great interest by other potential investors in the country.
10.Should Korea be unwilling to negotiate, please have no doubt that Korea will be facing its first international arbitration of 2021 brought on the basis of the KORUS FTA before the ICSID in Washington, D.C.
11.Our notice of dispute will begin by explaining the facts [...] case against Korea (II), before explaining why an investment arbitration tribunal has jurisdiction to rule on UNCTAD, Investment Dispute Settlement Navigator, Korea, Republic of, updated as of July 3 I, 2020, this dispute (III). It will then examine Korea's breaches (IV), prior to turning to the issue of the compensation [...] is seeking to repair his harm (V).
Real Estate, Building, Busan, South Korea, Redevelopment, Busan-Si Municipal Office, Busan Regional Construction And Management Administration (The "Brcma"), Korean Ministry Of Land Infrastructure And Transport ("Molit") Korus Fta, Arbitration, Redevelopment Union, Busan District Court, Investment Treaty, Foreign Investment Property, Foreign Investor, Financial Damages, Expropriation, Investment Treaty Arbitration.