Foreign investors not exempt from Korean law, Lee says after ISDS win

President Lee Jae Myung said Sunday that foreign investors cannot expect protection for investments that violate South Korean law, following the government's final victory in an investor-state dispute settlement case brought by a Chinese investor.

Lee made the remarks in a post on X, formerly Twitter, describing the outcome as "a principle confirmed through international arbitration proceedings in this ISDS annulment victory."

The Ministry of Justice earlier announced that an arbitral tribunal had confirmed the government bears no liability in the case, in which a Chinese investor who lost collateral after a failed business venture funded by illegal loans had filed a claim against South Korea.

"I am grateful to the Ministry of Justice officials who worked hard to protect the national interest," Lee said, adding that the government "will respond resolutely to unjust claims going forward."