Korea prevails in $196 mil. investor-state dispute against Chinese investor

The ICSID ad hoc committee rejected Chinese investor Fengzhen Min’s bid to overturn a $196 million award in favor of the Korean government in Seoul. It also ordered Min to pay about 1.51 billion won in annulment costs plus interest. The ministry said the ruling reaffirmed that investments made in violation of domestic law are not protected under ISDS. The dispute arose from loans tied to Pi Korea and an office building project in Beijing.

The dispute was initially worth 264.1 billion won, or $196 million, after being reduced from about 2 trillion won during the proceedings.

Min established Pi Korea in 2007 and raised 380 billion won through project financing loans arranged and guaranteed by Woori Bank.

The arbitral tribunal ruled in May 2024 that Min’s establishment of the company and acquisition of its shares were part of an illegal scheme to secure the loans.

Min filed the annulment request in September 2024, arguing that the tribunal misinterpreted the investment treaty and domestic law and did not give him enough opportunity to present his case.

Published Sep 13, 2026 5:24 pm KST

Kang Jun-ha, center, director of the International Legal Affairs Department of the Ministry of Justice, holds a press briefing at Government Complex Seoul, Sunday, to notify that Korea has won an investor-state dispute against a Chinese investor. Yonhap

An ad hoc committee of the International Center for Settlement of Investment Disputes (ICSID) rejected a Chinese investor's bid to overturn an earlier award in favor of the Korean government in an investor-state dispute worth 264.1 billion won ($196 million), the justice ministry said Sunday.

The ICSID ad hoc committee dismissed Chinese investor Fengzhen Min's annulment application in its entirety at around 5:25 a.m. Saturday (Korea time), according to the ministry.

The committee also ordered the Chinese investor to pay the Korean government about 1.51 billion won in costs for the annulment proceedings, plus interest.

"The decision reaffirmed the principle that investments made in violation of domestic law are not entitled to protection under the investor-state dispute settlement (ISDS) system," the ministry said.

The dispute stemmed from loans Min received from a Korean bank in connection with the acquisition and development of an office building in Beijing.

In 2007, Min established Pi Korea in Korea and raised 380 billion won through project financing loans arranged and guaranteed by Woori Bank.

When the firm failed to repay the loans, the Korean bank sold shares in the company it had received as collateral, prompting Min to file a civil lawsuit. Min ultimately lost the case at the Supreme Court in 2017.

The Chinese investor filed an ISDS claim with the ICSID in 2020, arguing that the bank's sale of the shares and Korea's civil and criminal judicial proceedings violated the investment treaty between Korea and China.

The damages claim, initially worth about 2 trillion won, was reduced to about 264.1 billion won during the proceedings.

In May 2024, the arbitral tribunal found that Min's establishment of the company and acquisition of its shares were part of an illegal scheme to secure the loans and ordered the Chinese investor to pay some 4.9 billion won in legal costs to the Korean government, plus interest.

However, Min sought an annulment in September 2024, arguing that the tribunal had misinterpreted the investment treaty and domestic law, and had failed to give him sufficient opportunity to present his case.

国际投资争端解决中心（ICSID）特设委员会驳回了中国投资者闵峰振（音译）推翻韩国政府在首尔获得的1.96亿美元赔偿裁决的请求。委员会还责令闵峰振支付约15.1亿韩元的撤销裁决费用及利息。韩国外交部表示，该裁决重申，违反韩国国内法的投资不受投资者与国家间争端解决机制（ISDS）的保护。此次争端源于与Pi Korea公司及北京一处办公楼项目相关的贷款。

该纠纷最初的金额为 2641 亿韩元，约合 1.96 亿美元，在诉讼过程中从约 2 万亿韩元减少到 2641 亿韩元。

Min 于 2007 年创立了 Pi Korea，并通过友利银行安排和担保的项目融资贷款筹集了 3800 亿韩元。

仲裁庭于 2024 年 5 月裁定，闵某设立公司并收购其股份是为获得贷款而实施的非法计划的一部分。

Min于2024年9月提出撤销申请，认为仲裁庭错误地解释了投资条约和国内法，并且没有给他足够的机会陈述案情。

发布于2026年9月13日下午5:24（韩国标准时间）

韩国法务部国际法律事务司司长姜俊河（中）周日在首尔政府大楼举行新闻发布会，宣布韩国在与中国投资者的投资者-国家争端中胜诉。（韩联社）

韩国司法部周日表示，国际投资争端解决中心（ICSID）特设委员会驳回了一名中国投资者推翻此前有利于韩国政府的裁决的请求。该投资者与国家之间的争端涉及金额达 2641 亿韩元（1.96 亿美元）。

据韩国财政部消息，ICSID特设委员会于周六（韩国时间）凌晨5点25分左右驳回了中国投资者闵凤珍的撤销申请。

委员会还责令该中国投资者向韩国政府支付约 15.1 亿韩元的撤销诉讼费用，外加利息。

该部表示：“该决定重申了违反国内法的投资无权获得投资者与国家争端解决机制（ISDS）的保护这一原则。”

这场纠纷源于闵某从一家韩国银行获得的贷款，该贷款与他在北京收购和开发一栋办公楼有关。

2007 年，闵在韩国成立了 Pi Korea 公司，并通过友利银行安排和担保的项目融资贷款筹集了 3800 亿韩元。

由于该公司未能偿还贷款，韩国银行出售了其作为抵押品获得的该公司股份，这促使闵某提起民事诉讼。闵某最终在2017年最高法院败诉。

2020 年，这位中国投资者向国际投资争端解决中心 (ICSID) 提起投资者与国家间争端解决 (ISDS) 诉讼，声称该银行出售股份以及韩国的民事和刑事司法程序违反了韩国和中国之间的投资条约。

最初索赔金额约为 2 万亿韩元，但在诉讼过程中减少至约 2641 亿韩元。

2024 年 5 月，仲裁庭裁定闵某设立公司并收购其股份是为获取贷款而实施的非法计划的一部分，并责令该中国投资者向韩国政府支付约 49 亿韩元的诉讼费用，外加利息。

然而，闵在2024年9月寻求撤销该裁决，理由是仲裁庭误解了投资条约和国内法，并且没有给他足够的机会陈述案情。