Government loses dispute with Iranian firm over Daewoo

The Korean government lost a legal dispute with an Iranian firm over the failed takeover of Daewoo Electronics in 2011, officials here said Thursday.

Iran’s Dayyani group, a major shareholder of Entekhab Industrial Group, sought an investor-state dispute settlement after Korea’s state-run Korea Asset Management Corp. (Kamco) canceled a contract to sell a major stake in Daewoo Electronics to Entekhab in 2011 due to funding uncertainties. Dayyani filed the complaint with the International Center for Settlement of Investment Disputes (Icsid), criticizing Seoul for violating a bilateral investment treaty and demanding the Korean government pay 93.5 billion won ($87.4 million).

Earlier this month, the Icsid ordered the Korean government to pay 73 billion won, according to Korea’s financial regulator.

Yonhap