Arbitration panel rejects Iranian investors' $566 million claim against South Korea
A Permanent Court of Arbitration panel dismissed a 770 billion-won claim by Iran’s Dayyani family, ruling South Korea not liable for delayed payments.
An international arbitration tribunal in The Hague dismissed a 770 billion-won (US$566 million) claim brought by six members of Iran’s Dayyani family against South Korea. The claim stemmed from a delayed payment related to a 2011 aborted sale of a Daewoo Electronics stake to the Dayyanis’ Entekhab Industrial Group. After a 2018 ruling that ordered Seoul to pay 73 billion won plus interest, South Korea fulfilled the payment in April 2022.
The Dayyanis filed a new case in October 2021 alleging further damages from the payment delay, which Seoul said required U.S. Office of Foreign Assets Control clearance due to sanctions. The PCA panel concluded the delay was justified, rejected the damages claim, and ordered the claimants to pay about 4 billion won in legal expenses and roughly 800 million won in administrative fees.
Why it matters
The decision clarifies how sanctions-related approvals affect international investment disputes.
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