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L/EX

NOTICE OF INTENT TO SUBMIT A CLAIM TO ARBITRATION P 2:49
UNDER CHAPTER 11 OF KORUS-FTA

DEPARTMENT OF STATE

KTurbo Inc.
Disputing Investors,

v.

The Government of the
United States of America
Respondent

October 28, 2019

Signature

[Page 1]

October 28, 2019

VIA HAND DELIVERY
AND FEDERAL EXPRESS

His Excellency Mr. Trump, President of the United States

c/o

Executive Director (L/EX)
Office of the Legal Adviser
Department of State
Washington, D.C. 20520
United States of America

Re: Notice of Intent to Bring Arbitration against the United States for Violation of Obligations Under the US-Korea Free Trade Agreement

Your Excellency:

1. The Disputing Investor in this matter is a Korean enterprise, KTurbo Inc. (“KTurbo”) and Investment is a US enterprise, KTurbo USA Inc. under Article 11.28 DEFINITIONS. The Disputing Investor intend to bring claims pursuant to KORUS Chapter 11. The Disputing Investors have appended proof of their nationality and ownership to this submission.¹

2. KTurbo Inc. specializes in the production of high efficiency turbo compressors and turbo blowers, having built the world’s first environmentally friendly turbo compressors which does not use lubricant oil. KTurbo USA, Inc. is a subsidiary of KTurbo that was registered in 2010 as a corporation in 1183 Pierson Dr., Unit 118, Batavia, IL 60510 USA. KTurbo USA is wholly owned by KTurbo Korea.

3. On April 8, 2015 CEO of KTurbo was illegally extradited to the United States, which will be next dispute. (12-CR-109, Northern District of IL)

4. KTurbo was never indicted or punished, but the district court who lacks power over KTurbo and its properties forfeited properties of KTurbo, which is EXPROPRIATION prohibited under Article 11.6. See Case: 1:12-cr-00109 Document #: 334.

5. Furthermore, even if District court has jurisdiction over KTurbo without prosecution, District court ordered forfeiture and restitution after ruling that the government failed to prove any loss and gain,² which is illegal under the United State law.³

¹ See Annex 1. ↩

² “the government has failed to prove, ..., the defendant’s gain in this case. Based on its prior determination that the government failed to establish the defendant’s actual or intended loss ...” (Dkt.273) ↩

³ “The amount of restitution is limited to the actual losses” United States v. Kennedy, 726 F.3d 968, 973 (7th Cir. 2013) ↩

Signature

[Page 2]

6. Even if the breach was initiated September of 2010, before treaty entered into force on March 15, 2012, under the “continuing violation doctrine” the limitations period for a continuing offense does not begin until the offense is complete.⁴

7. KTurbo submits this Notice of Intent to bring arbitration against the United States(“USA”) pursuant to Article 1 1.6(2) of the Free Trade Agreement between Korea and the United States (the “FTA”).

8. The contact information for the Disputing Investor appears below:

242, Sangjangincharo, Gaduk-myun, Sangdang-gu,
Cheongju-si, Chungbuk, Korea
TEL: +82-43-275-7573
Web site: www.kturbo.com
E-mail: [email protected], [email protected]

THE UNITED STATES KNOWINGLY DENIED EXECISING DUE DILIGENCE

9. We do not argue merits of judicial proceedings, but we argue that the judicial proceedings themselves are illegal, that is beyond official capacity or frivolous.

10. We do not argue that the officer’s actions are unauthorized or ultra vires,⁵ but argues that the actions are illegal, that is beyond their official capacity.

11. The United States Government not only authorized and participated in the deprivation, but also failed to protect KTurbo’s investments, which give rise to liability.

“Restitution is loss based, while forfeiture is gain based.” U.S. v. Genova, 333 F.3d 750, 761 (7th Cir. 2003)

⁴ The doctrine relieves a plaintiff of a limitations bar if he/she can show a series of related acts to him/her, one or more of which falls within the limitations period. Pegram v. Honeywell, Inc., 361 F.3d 272, 279 (5th Cir. 2004). ↩

⁵ “190. ... An unauthorized or ultra vires act of a governmental entity of course remains, in international law, the act of the State of which the acting entity is part, if that entity acted in its official capacity. But something more than simple illegality or lack of authority under the domestic law of a State is necessary to render an act or measure inconsistent with the customary international law requirements of Article 1105(1)” ADF v. United States ↩

Signature

[Page 3]

DAMAGES and CLAIM

12. It is trite that if a state is responsible for conduct that is unlawful under international law, it is obliged to make full reparation for the consequences of its wrongful conduct⁶ and that this involves putting the wronged party in the position it would have been in had the wrongful conduct not occurred.⁷

13. Since KTurbo itself was directly expropriated, KTurbo claims the fair market value of the properties and its interest.

14. Since KTurbo lost opportunity, KTurbo claims loss of profit.

15. Accordingly, we seek compensation for the loss and damage suffered in relation to illegal forfeiture in breach of treaty in an amount to be qualified and currently estimated to be approximately 10 million dollars.

16. However, we invite representative of the United States to find amicable solution to the present dispute and reserves its right to submit its claim to arbitration under Article 11.16 of the KORUS-FTA should no amicable resolutions be reached within 90 days of receipt of this notice.

Yours Sincerely,

Choi Kyoo Cick

Signature

Legal Administrator

KTurbo Inc.
242, Sangjangincharo, Gaduk-myun, Sangdang-gu,
Cheongju-si, Chungbuk, 28202 Korea
TEL:82-10-4702-4708

⁶ Articles on the Responsibility of States for Internationally Wrongful Acts, drafted by the International Law Commission, and annexed to United Nations General Assembly Resolution 56/83 of 12 December 2001, Article 31. ↩

⁷ Factory at Chorzow (Merits), pcn, Series A, No 17 (1928), p 47. ↩

Signature

[Page 4]

Annex 1. Nationality of Investor

Filed: 1/5/2010 Jesse White Secretary of State

See Note 1 on back to determine fees.

Filing Fee: $150 Franchise Tax: $ 25.00 Total $ 175.00 File # 66747417 Approved: CAF

Submit in duplicate — Type or Print clearly in black ink — Do not write above this line —

1. Corporate Name: KTURBO USA INC.

CAF

The Corporate Name must contain the word “Corporation,” “Company,” “Incorporated,” “Limited” or an abbreviation thereof. CP0993563

2. Initial Registered Agent: Joseph K. Kerr
First Name Middle Initial Last Name

Initial Registered Office: 1000 North Blvd. Suite 44
Number Street Suite No. (P.O. Box alone is unacceptable)

Oak Park IL 60301 Cook
City ZIP Code County

3. Purposes(s) for which the Corporation is Organized:
If more space is needed, attach additional sheets of this size. 44

The transaction of any or all lawful businesses for which corporations may be incorporated under the Illinois Business Corporation Act.

4. Paragraph 1 — Authorized Shares, Issued Shares and Consideration Received:

TOTAL => $ 1,000.00

Paragraph 2 — The preferences, qualifications, limitations, restrictions and special or relative rights in respect of the shares of each class are:
If more space is needed, attach additional sheets of this size.

(cont. on back)

Printed by authority of the State of Illinois. March 2007 — 10M — C 162.26

Signature

[Page 5]

ITEMS 5, 6 AND 7 ARE OPTIONAL

5. a. Number of Directors constituting the initial board of directors of the corporation: three (3)
b. Names and Addresses of persons serving as directors until the first annual meeting of shareholders or until their successors are elected and qualify:

6. a. It is estimated that the value of the property to be owned by the corporation for the following year wherever located will be: $ 200,000.00
b. It is estimated that the value of the property to be located within the State of Illinois during the following year will be: $ 200,000.00
c. It is estimated that the gross amount of business that will be transacted by the corporation during the following year will be: $ 2,000,000.00
d. It is estimated that the gross amount of business that will be transacted from places of business in the State of Illinois during the following year will be: $ 2,000,000.00

7. Other Revisions: Attach a separate sheet of this size for any other provision to be included in the Articles of Incorporation (e.g., authorizing preemptive rights, denying cumulative voting, regulating internal affairs, voting major-ity requirements, fixing a duration other than perpetual, etc.).

NAME(S) & ADDRESS(ES) OF INCORPORATOR(S)

8. The undersigned incorporator(s) hereby declare(s), under penalties of perjury, that the statements made in the forego-ing Articles of Incorporation are true.

Dated December 28, 2009
Month & Day Year

Signatures must be in BLACK INK on an original document. Carbon copy, photocopy or rubber stamp signatures may only be used on conformed copies.
NOTE: If a corporation acts as Incorporator, the name of the corporation and the state of incorporation shall be shown and the execution shall be by a duly authorized corporate officer. Type or print officer’s name and title beneath signature.

Printed by authority of the State of Illinois, March 2007 — 10M — C 162.26

Signature

[Page 6]

KTURBO USA INC.
Incorporated under the laws of the State of Illinois

KTURBO INC. is the owner of

FIVE THOUSAND (5000) COMMON SHARES
of
KTURBO USA INC.

In Witness Whereof, KTURBO USA INC., has caused this Certificate
to be signed by the duly authorized officers of the corporation.

Dated

Signature
Heon Seok LEE Chief Executive Officer

Signature
Trinity Seung Eun LEE Secretary

Certificate of Registration

[illegible]

This person or business is authorized under the Retailers’ Occupation Tax Act as a reseller in Illinois and is authorized to purchase items tax-free provided the items are purchased for resale and all sales are made by the reseller in a nontaxable manner.

Issued Date: 07/02/2015

Signature

[Page 7]

CORPORATION FILE DETAIL REPORT

Purchase Certificate of Good Standing
(One Certificate per Transaction)

Signature

[Page 8]

[제41호서식]

Registered No. 2015 - 6329

NOTARIAL CERTIFICATE

NOTARY PUBLIC CHUNG YOUNG OFFICE
35, DUNSAN-RO, 137BEON-GIL, SEO-GU, DAEJEON 302-831 KOREA

210mm×297mm
(인쇄용지(특급) 70g/m²)

Signature

[Page 9]

We, hereby, request proving that above article is true

KTURBO INC.
Requestor Heon Seok Lee (Signature)
CEO Proxy Heon Seok Lee (Signature)

To tax accountant, Cheol Jong Lee

→ If a proxy applies this, please make sure that power of attorney [No 13 format according to civil affair documents procedure] is written and submitted

• Agreement on collection and use of personal information by Privacy Act [Applicant (self)]
  O Collection Use (issuing certificates, after management) O period for preserving and using (5 years)
  O Identification information for person whose privacy information is collected [Resident's no, foreigner's registration No, passport No]
  For above articles Agreed ☐ Not agreed ☐
  O Any person has his or her right to reject above agreement and disadvantage may occur depending on rejection of agreement (certificate may not be issued)

• Agreement on collection and use of personal information by Privacy Act [Applicant (self)]
  O Collection Use (issuing certificates, after management) O period for preserving and using (5 years)
  O Identification information for person whose privacy information is collected [Resident's no, foreigner's registration No, passport No]
  For above articles Agreed ☐ Not agreed ☐
  O Any person has his or her right to reject above agreement and disadvantage may occur depending on rejection of agreement (certificate may not be issued)

I, hereby, certifies that the above articles are true

Confirmed by tax accountant, Cheol Jong Lee
Registration No.: u-10653

This is to confirm that this is true to the document reported previously in accordance with Article 2-7 of the Tax Accountant Law.

Signature

[Page 10]

Enforcement regulation of corporation tax law (revised Feb 2012)

We, hereby shall submit overseas corporation's statements according to "Enforcement regulation of corporation tax law"
Provision 2 of Article 121 on "Corporation tax law" March 31, 2014
To Tax officer of East Chungju Tax Office Submitter KTURBO INC, Heon Seok Lee (Signature)

Signature

[Page 11]

2015 04/13 12:47 FAX 0432368100 OAK JEON 0001/0002

[국세청민원사무처리규정 제9호서식] <개정 2012.01.02>

위의 내용이 사실과 같음을 증명하여 주시기 바랍니다.

2015년 04월 13일

신청인(본인) 이헌석 (서명 또는 인)

한국 터보주식회사
대표이사 대리인 헌 석 (서명 또는 인)
세무사이철종 귀하

※대리인이 신청할 경우 민원서류 위임장 [국세청민원사무처리규정 제13호서식]을 작성하여 제출하여야 합니다.

※개인정보보호법 제24조에 의한 수집·이용동의 [신청인(본인)]
○수집·이용목적(증명발급, 사후관리 등) ○보유·이용기간(5년)
○수집대상 고유식별정보 [주민등록번호, 외국인등록번호, 여권번호]
○상기내용에 대해 동의함 ☐ 동의하지 않음 ☐
○동의를 거부할 권리가 있으며, 동의 거부에 따라 불이익(증명발급 불가)이 있을 수 있음

※개인정보보호법 제24조에 의한 수집·이용 동의 [대리인]
○수집·이용목적(증명발급, 사후관리 등) ○보유·이용기간(5년)
○수집대상 고유식별정보 [주민등록번호, 외국인등록번호, 여권번호]
○상기내용에 대해 동의함 ☐ 동의하지 않음 ☐
○동의를 거부할 권리가 있으며, 동의 거부에 따라 불이익(증명발급불가)이 있을 수 있음

세무사법 제2조 제7호에 의하여
신고한 서류와 상위없음을 확인합
세무사등록번호-10553
세무사 이철종

위의 내용이 사실과 같음을 증명합니다.

210mm×297mm(신문용지 54g/㎡)

Signature

[Page 12]

(앞쪽)

■법인세법 시행규칙 [별지 제81호서식] (2012.02.28 개정)

「법인세법」 제121조의2 및 「법인세법 시행령」 제164조의2에 따라 해외현지법인명세서를 제출합니다.

2014 년 03 월 31 일

제출인 한국터보기계(주) (서명 또는 인)
이헌석

동청주 세무서장 귀하

210㎜×297㎜(백상지 80g/㎡ 또는 중질지 80g/㎡)

Signature

[Page 13]

[제45호서식]

210mm×297mm
(인쇄용지(특급) 70g/㎡)

Signature