In response to U.S. Coupang shareholders signaling they will file investor-state dispute settlement (ISDS) arbitration against our government, the Ministry of Justice moved to respond by appointing law firm Peter & Kim, credited as a key player in the Lone Star victory, and the overseas firm Arnold & Porter.
The Ministry of Justice said in a press notice on the 5th that, regarding the ISDS notice of intent submitted by U.S. Coupang shareholders, it selected Peter & Kim as the domestic advisory firm and Arnold & Porter as the overseas cooperating firm to respond swiftly during the 90-day cooling-off period that proceeds from the receipt of a notice of intent to arbitrate under the South Korea-United States Free Trade Agreement (FTA).
This follows Green Oaks and Altimeter, which hold equity in Coupang, submitting on Jan. 22 a notice of intent to arbitrate, saying that the Korean government treated Coupang in a discriminatory manner in violation of the South Korea-United States FTA and that they suffered losses such as a share price decline.
A notice of intent to arbitrate is a document in which a claimant informs the respondent state of an intention to commence arbitration. It is not a formal arbitration filing, but a formal arbitration can be initiated 90 days after the submission of the notice of intent.
On the background to appointing Peter & Kim and Arnold & Porter, the Ministry of Justice explained that it comprehensively reviewed multiple factors, including prior experience handling similar cases.
Peter & Kim and Arnold & Porter are the law firms that, last December, represented our government and led the final victory in the international dispute with the private equity fund Lone Star.