[Photo] Korea’s first loss in ISD suit

In an Investor State Dispute (ISD) lawsuit filed against the Korean government by Iranian electronics firm Entekhab Group, an international court has ruled that the Korean government’s involvement in the sale of Daewoo Electronics was unfair, ordering the state to reimburse the Iranian firm 73 billion won (US$67.96 million). Entekhab Group filed a suit with the United Nations Commission on International Trade Law in Sept. 2017 on the grounds that Seoul violated the bilateral investment treaty during Entekhab’s 2010 takeover of Daewoo Electronics. The ISD litigation system allows foreign investors to file for compensation if a state government has acted in a way that makes an investor incur unnecessary losses.