The Chosun | 15 April 2026
South Korea recovers record 9.6 billion won in ISDS case
By Kang Ji-eun
The Ministry of Justice announced on the 15th that the South Korean government has fully recovered litigation costs from Schindler, a Swiss global elevator company, following its victory in an Investor-State Dispute Settlement (ISDS) case filed by the firm. The government’s win in the case, which sought approximately 320 billion Korean won, led to the recovery of 9.6 billion Korean won in legal fees—the largest sum ever reclaimed by South Korea in an ISDS case.
The dispute began in 2018 when Schindler, the second-largest shareholder of Hyundai Elevator, filed an ISDS claim against the South Korean government for around 500 billion Korean won. Schindler argued that the Korea Fair Trade Commission (KFTC), Financial Supervisory Service (FSS), and Financial Services Commission (FSC) failed to address unfair harm caused by Hyundai Elevator’s paid-in capital increase and convertible bond issuance between 2013 and 2015, which it claimed strengthened the controlling family’s management rights. The initial claim amount was 500 billion Korean won, but after eight years of legal battles, the compensation demand was reduced to 320 billion Korean won.
The arbitral tribunal rejected Schindler’s claims, stating that the KFTC, FSC, and FSS had acted within their legitimate authority, conducting sufficient investigations without arbitrariness or discrimination. It ordered Schindler to pay 9.6 billion Korean won in litigation costs to the South Korean government under the principle that the losing party bears expenses.
In typical ISDS cases, losing investors often delay or refuse to pay costs, prompting states to pursue enforcement lawsuits abroad. To prevent this, the Ministry of Justice sent Schindler a demand letter on the 19th of last month, warning that unpaid amounts after April 12th would incur interest from the 13th and trigger compulsory enforcement. Schindler transferred the full 9.6 billion Korean won to the Ministry’s designated account between the 10th and this day. The funds will be allocated to the national treasury.
South Korea has recently secured consecutive victories in ISDS cases. In November last year, it won a case to cancel a 400 billion Korean won ISDS claim by the U.S. private equity fund Lone Star. On February 23rd of this year, it also prevailed in a case to cancel a 160 billion Korean won ISDS claim by the U.S. private equity fund Elliott.
