US hedge fund demands $770m from S Korea over Samsung merger

A US hedge fund is demanding almost $800 million from South Korea at an international tribunal over the controversial merger of two units of the giant Samsung conglomerate, officials said Friday.

The 2015 deal, in which fashion, food and leisure operator Cheil Industries took over construction company Samsung C&T for $8.0 billion, featured in the sprawling corruption scandal that brought down ousted president Park Geun-hye.

The transaction -- which activist fund Elliott Associates and other shareholders said wilfully undervalued C&T -- was seen as a key step to ensuring the succession of Samsung heir Lee Jae-yong.

It went through after the National Pension Service (NPS) -- C&T's biggest shareholder -- approved it.