ABSTRACT
This chapter examines risk in application to international investment law and investor-State disputes in connection to newly industrialized countries with conglomerate-led economies. Building off lessons from South Korea and Japan, this chapter examines two prominent risk factors, corporate governance and State intervention, and identifies how they can conflict with fair and equitable treatment and legitimate expectations. Given the economic and socioeconomic gravitas of these conglomerates in their respective countries, governments face a difficult choice when it comes to hedging such risk: face an increasing frequency and intensity of investment-related conflicts or allow these giants to fall. In concluding, this chapter identifies two broad policy solutions in moving forward. The first is scaling up multistakeholder engagement and transparency. The second is updating existing treaty obligations and approaches to future accessions. The conclusion shows that recent disputes involving the Republic of Korea are especially demonstrative of the need for these policy solutions and shall continue to be of greater importance to similar economies with increasing economic integration.
