A complete ICSID annulment victory for the Republic of Korea

The dispute arose from allegations by Mr. Min, a Chinese businessman, that the conduct of the Korean courts in civil and criminal proceedings against him and his businesses violated the China-Korea Bilateral Investment Treaty (BIT) and international law. 

In the underlying arbitration (where we also represented Korea), the tribunal held in May 2024 that Mr. Min had secured the initial financing of his investment through an unlawful scheme and, consequently, the shares in his company established for this purpose were not a protected investment under the China-Korea BIT. It rejected Mr. Min’s claims in their entirety and ordered him to pay some USD3.65 million towards Korea’s costs plus interest.

Mr. Min subsequently applied to annul the award before ICSID. In September 2026, following two years of rigorous written and oral submissions, the ad hoc committee dismissed the annulment application in its entirety, confirming the original award, and awarded Korea all of its costs (totaling USD1.12m) plus interest.

The Korean Ministry of Justice has announced that this is the first investment treaty dispute in which Korea has achieved victory after proceeding to the merits stage, and that the annulment decision has now rendered that victory final and complete.

Jae Hee Suh, A&O Shearman counsel commented, “We are proud to have supported the Republic of Korea for the past six years in securing a complete victory in this landmark dispute. The decision not only vindicates the legality of the actions of the Korean State in the eyes of international law, but also leaves intact the award’s central finding that investments that are unlawful under domestic law are not entitled to treaty protection.”

The A&O Shearman team in Singapore and Hong Kong was led by counsel Jae Hee Suh, with support from senior associates Fares Nowak and Curtis Fung, and associate Wooseok Shin. The team worked alongside our co-counsel Yulchon LLC in Seoul and Matthew Hodgson in London (a former A&O Shearman partner who is now with Linklaters).