Summary

AWARD ON THE REMITTED ISSUE

The Arbitral Tribunal
Dr. Veijo Heiskanen (Presiding Arbitrator)
Mr. Oscar M. Garibaldi
Mr. J. Christopher Thomas KC

I. INTRODUCTION
A. The Parties and the Tribunal
B. Overview of the Prior Proceedings
II. PROCEDURAL HISTORY
A. Commencement of the Arbitration and Initial Steps
B. Issuance of the Award
C. Set-Aside Proceedings in the English Courts
D. Establishment of the Procedural Framework for the Remitted Proceedings
E. Written Submissions on the Remitted Issue and Admission of New Evidence
F. Hearing on the Remitted Issue
G. Post-Hearing Proceedings
III. BACKGROUND TO THE REMITTED ISSUE
A. The Tribunal's Findings in the Award
1. The Measures at Issue
2. The Tribunal's Findings on Breach, Causation, and Quantum
B. The Set-Aside Judgment and the Remitted Issue
C. The Additional Judgments
1. The Shareholder Claims Judgments
2. The JY Lee Unlawful Merger Judgments
IV. REQUESTS FOR RELIEF
V. OUTSTANDING PROCEDURAL ISSUES
VI. SCOPE OF THE REMITTED ISSUE
A. The Parties' Positions
1. The Claimant's Position
2. The Respondent's Position
B. The Tribunal's Determination
VII. FACTUAL CAUSATION
A. The Parties' Positions
1. The Claimant's Position
2. The Respondent's Position
B. The Tribunal's Determination
1. Applicable Standard of Proof
2. Whether the factual causation of the Claimant's loss has been established to the applicable standard
VIII. LEGAL CAUSATION
A. The Parties' Positions
1. The Claimant's Position
2. The Respondent's Position
B. The Tribunal's Determination
IX. QUANTUM
A. The Parties' Positions
1. The Claimant's Position
2. The Respondent's Position
B. The Tribunal's Determination
X. COSTS
A. The Parties' Positions
1. The Claimant's Position
2. The Respondent's Position
B. The Tribunal's Determination
1. Costs of the Original Proceedings
2. Costs of the Set-Aside Proceedings
3. Costs of the Remitted Proceedings
XI. AWARD ON THE REMITTED ISSUE

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B. OVERVIEW OF THE PRIOR PROCEEDINGS

6. On 20 June 2023, the Tribunal issued its Award on issues of jurisdiction and the merits.

7. On 17 July 2023, the Respondent challenged the Award before the High Court of Justice in England and Wales.

8. On 1 September 2023, the Tribunal issued its Decision on Requests for Correction and Interpretation of the Award.

9. On 1 August 2025, the High Court dismissed the challenge.

10. Following the Respondent's appeal, the Court of Appeal of England and Wales allowed the appeal on 17 July 2025 and referred the case back to the High Court.

11. On 23 February 2026, the High Court issued its judgment, partially setting aside the Award and remitting the following issue to the Tribunal (the "Remitted Issue"):

Did the breaches of the Treaty found to have been constituted by the measures of the Blue House, the Minister of Health and Welfare, and the Ministry of Health and Welfare cause loss or damage to the Claimant, and the relief to be awarded for such loss or damage?1

12. On 18 March 2026, Mr. Lord Justice Foxton of the High Court issued an order reflecting his findings in the judgment of 23 February 2023, identifying the parts of the Award that had been set aside and formally remitting the issue to the Tribunal for reconsideration.

13. In these Remitted Proceedings, the Tribunal was reconstituted to decide the Remitted Issue. The Tribunal's decision is set out in this Award on the Remitted Issue.

...

II. PROCEDURAL HISTORY

14. The Award recounts in detail the procedural history from the commencement of the arbitration until the date of issuance of the Award (the "Original Proceedings"). This Section summarizes only the key procedural phases of the Original Proceedings until the Award and sets out the subsequent developments.

A. COMMENCEMENT OF THE ARBITRATION AND INITIAL STEPS

15. On 13 April 2018, the Claimant served on the Government of the Republic of Korea a Notice of Intent to submit its claims to arbitration pursuant to Article 11.16(2) of the Free Trade Agreement between the Republic of Korea and the United States dated 30 June 2007 (the "Treaty").

16. By a Notice of Arbitration and Statement of Claim dated 12 July 2018, the Claimant commenced arbitration proceedings against the Respondent pursuant to Article 11.16(3)(c) of the Treaty and Article 3(1) of the Arbitration Rules of the United Nations Commission on International Trade Law, 2013 (the "UNCITRAL Rules").

17. In its Notice of Arbitration and Statement of Claim, the Claimant appointed Mr. Oscar M. Garibaldi, a national of the United States and the Argentine Republic, as arbitrator.

18. On 13 August 2018, the Respondent filed a Response to Notice of Arbitration and Statement of Claim, and appointed Mr. J. Christopher Thomas KC, a national of Canada, as arbitrator.

19. On 15 November 2018, pursuant to Article 11.19(1) of the Treaty, the Parties appointed Dr. Veijo Heiskanen, a national of Finland, to serve as the presiding arbitrator.

20. On 21 November 2018, following the Parties' agreement, the Permanent Court of Arbitration (the "PCA") confirmed that it would act as registry and administer these arbitral proceedings.

21. On 27 March 2019, the Parties and the Tribunal agreed on the Terms of Appointment, which inter alia specified that English and Korean would be the official languages of the arbitration. The Terms of the Appointment were executed by both Parties and the Tribunal on 25 July 2019.

22. On 1 April 2019, the Tribunal issued Procedural Order No. 1, which inter alia established London as the place of arbitration, the rules of procedure, and the transparency regime applicable to the proceedings.

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XI. AWARD ON THE REMITTED ISSUE

315. For the foregoing reasons, the Tribunal determines as follows:

a. The Respondent is ordered to pay the Claimant compensation for the losses caused to the Claimant by the Respondent's breach of the Treaty in the amount of USD 48,490,438.00;

b. The Respondent is ordered to pay the Claimant pre-award interest at a rate of 5 percent on the sum in sub-paragraph (a) above, compounded yearly from 16 July 2015 until the date of this Award on the Remitted Issue;

c. The Respondent is ordered to pay the Claimant post-award interest at a rate of 5 percent, compounded yearly, from the date of this Award on the Remitted Issue until payment of the sum in sub-paragraph (a) above in full;

d. The Claimant is ordered to pay the Respondent the legal costs incurred by the Respondent in relation to the Original Proceedings in the amount of USD 3,457,479.87, with interest at the rate of 5 percent, compounded yearly, payable from 30 days of the date of the Award on the Remitted Issue;

e. The Respondent is ordered to pay the Claimant the legal costs incurred by the Claimant in relation to the Original Proceedings, in the amount of USD 28,903,188,90, with interest at the rate of 5 percent, compounded yearly;

f. The Respondent is ordered to pay the Claimant the costs of the arbitration incurred by the Claimant in these Remitted Proceedings, in the amount of USD 302,142.65, with interest at the rate of 5 percent, compounded yearly;

g. The Respondent is ordered to pay the Claimant the legal costs incurred by the Claimant in these Remitted Proceedings, in the amount of USD 3,643,201.29, with interest at the rate of 5 percent, compounded yearly;

h. The Claimant's request that the Respondent be ordered to pay the Claimant the costs of the Set-Aside Proceedings before the English courts is denied; and

i. All other claims, defenses and requests for relief are denied.

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Footnotes omitted