U.S. hedge fund Elliott Management is launching legal action against the South Korean government,... saying Seoul unlawfully exerted its influence during the merger of two Samsung units in 2015.
Won Jung-hwan reports.

U.S. hedge fund Elliott Management is seeking compensation from South Korea over claims that the former administration intervened in the merger of two Samsung units in 2015.
The New York-based hedge fund handed a Notice of Intent to South Korea's Justice Ministry through the investor-state dispute settlement system on Tuesday.
In 2015, Elliott filed for an injunction against the merger between Samsung C&T and Cheil Industries,… claiming the merger was designed to cement a power transfer to Samsung Group's heir apparent Lee Jae-yong.
When the U.S. hedge fund, which owned about 7-percent of Samsung C&T at the time, lost the vote on the merger,... it claimed Samsung has clinched support from the government-run National Pension Service
Elliott claims it incurred significant damages as a result of the merger.

Last month, Elliott demanded another South Korean conglomerate, Hyundai Motor Group to change its management structure.
The hedge fund is pushing for Hyundai to adopt a more efficient holding company structure by merging Hyundai Motor and Hyundai Mobis into one company.
Hyundai Motor Group said it will continue to communicate with its shareholders, including Elliott, about how it will simplify its governance structure through business spinoffs and mergers.
As foreign investors are expected to increase their shares in Korean companies,… they are likely to further scrutinize those companies' management structure.
Won Jung-hwan, Arirang News.