A U.S. hedge fund has announced it will file an investor-state dispute(ISD) lawsuit arguing the South Korean government unjustly intervened in the merger between Samsung C&T Corporation and Cheil Industries in 2015.

According to Seoul's Justice Ministry on Tuesday, New York-based Mason Capital Management has submitted a letter of intent on mediation to the Seoul government, which is a step before filing an ISD suit.

Mason claims the Korean government's unjustified intervention in the Samsung C&T merger violated the South Korea-U.S. free trade agreement.

In the letter of intent, the hedge fund argued that due to the intervention, it suffered losses of 188 billion won, or some 175 million dollars. 

In April, another U.S. hedge fund Elliott Management demanded compensation of 700 billion won from South Korea over the 2015 merger deal.