U.S. activist fund Elliott Associates is seeking more than 670 million dollars or around 700 billion won in compensation from the South Korean government for losses it claims to have suffered from a controversial merger of two Samsung affiliates.

The Ministry of Justice on Friday disclosed the notice of intent it received from Elliott on April 13th, in which the U.S. firm asked the Seoul government for a settlement over damages incurred from investment in Samsung C&T Corporation following its merger with Cheil Industries.

The hedge fund claimed in its investor-state dispute settlement that its loss is currently estimated at at least 670 million U.S. dollars or 718 billion won. 

Analysts have predicted the amount to be around between 200 billion and 800 billion won. 

Samsung C&T Corporation merged with Cheil Industries in 2015 despite protest from Elliott on the back of support from the National Pension Service(NPS). The NPS held an eleven-point-21 percent stake in Samsung C&T at the time of the deal, while Elliott's share accounted for about seven percent.

The hedge fund claimed that it has suffered losses as a Samsung C&T shareholder because the previous South Korean administration unfairly intervened in the merger.