PDF of Title Page and T.O.C.

About the Editors

About the Authors

Preface

Chapter 1 Introduction 

1.1 Korea's Emergence as an Arbitration Power

1.2 Current Status of Arbitration in Korea

1.3 The Rise of Arbitration in Korea: A Brief Historical Sketch

1.3.1 Historical Precursors
1.3.2 Enactment of the Arbitration Act of 1966
1.3.3 Establishment of a Korean Arbitral Institution
1.3.4 Accession to the New York Convention
1.3.5 1999 Amendment of the Arbitration Act: Adoption of UNCITRAL Model Law 14
1.3.6 Korean Arbitration Undergoes a Rapid Growth Phase
1.3.7 Development of KCAB International Arbitration Rules

1.4 Seoul as a Safe Place of Arbitration and Competitive Regional Arbitration Center

1.4.1 The Lex Arbitri
1.4.2 Strong and Supportive National Courts
1.4.3 A Reliable Arbitration Institution
1.4.4 Capable and Experienced Arbitrators and Arbitration Practitioners
1.4.5 Convenience

1.5 Future Prospects

1.6 Scope and Organization of this Book

Chapter 2 Overview of Civil Litigation in Korea

2.1 Introduction 

2.2 Structure of Korean Courts 

2.3 Necessary Documents for Litigation 

2.4 Fees, Costs and Security Deposit 

2.5 Confidentiality 

2.6 Pre-trial Procedures and Discovery 

2.6.1 Timing 
2.6.2 Early Disposition 
2.6.3 Document Production 

2.7 Trial Procedure 

2.7.1 Timing 
2.7.2 Timely Submissions 
2.7.3 Presentation of Evidence and Examination of Witnesses
2.7.4 Proving the Case 

2.8 Judgments 

2.9 Appeals 

2.9.1 Duration 

2.10 Enforcement

2.10.1 Enforceable Judgments 
2.10.2 General Enforcement Procedure 
2.10.3 Disclosure of Assets 
2.10.4 Enforcement of Foreign Judgments 

2.11 Interim Relief 

2.12 Recovery of Litigation Expenses

Chapter 3 The Arbitration Agreement

3.1 Preliminary Matters

3.1.1 Definitions 
3.1.2 Types of Arbitration Agreements

3.1.2.1 Arbitration Clauses and Submission Agreements
3.1.2.2 Standing Offers to Arbitrate under Investment Treaties

3.1.3 A Defined Legal Relationship 
3.1.4 Subject Matter Capable of Settlement by Arbitration
3.1.5 Separability of Arbitration Agreement 

3.2 Law Applicable to Arbitration Agreement

3.2.1 Law Applicable to Procedural Matters
3.2.2 Substantive Law Governing the Contract as a Whole
3.2.3 Substantive Law Governing the Arbitration Agreement

3.3 Parties to an Arbitration Agreement

3.3.1 Capacity of Parties to Enter into an Arbitration Agreement

3.3.1.1 Individuals
3.3.1.2 Legal Persons
3.3.1.3 State Entities
3.3.1.4 Agents
3.3.1.5 Insolvency

3.3.2 Determining the Parties to the Arbitration Agreement
3.3.3 Implied Consent to Arbitrate by Third Parties
3.3.4 Succession and Delegation 

3.4 Scope of an Arbitration Agreement 

3.4.1 Disputes Covered by the Arbitration Agreement
3.4.2 Counterclaims and Set-off 

3.5 Effects of a Valid Arbitration Agreement 

3.5.1 Positive Effects 
3.5.2 Negative Effects 

3.6 Validity of Arbitration Agreements under Korean Law

3.6.1 Formal Validity: Writing Requirement

3.6.1.1 Writing Requirement under the Arbitration Act 
3.6.1.2 Relevant Court Precedents 
3.6.1.3 No Other Requirements of Form under Korean Law 

3.6.2 Substantive Validity: Intent to Submit Dispute to Arbitration

3.6.2.1 References to Standard Terms and Conditions Containing an Arbitration Clause
3.6.2.2 Multi-tier Dispute Resolution Clauses
3.6.2.3 No Requirement that Recourse to Court Litigation Be Expressly Waived

3.6.3 Pathological Arbitration Clauses

3.6.3.1 The Unwilling Arbitrator 
3.6.3.2 The Non-existent Arbitral Institution 
3.6.3.3 The "Split" or "Elective" Dispute Resolution Clause

3.7 Basic Elements of an Arbitration Agreement

3.7.1 Place of Arbitration 
3.7.2 Arbitral Institution
3.7.3 Number of Arbitrators 
3.7.4 Language of Arbitration 
3.7.5 Confidentiality 

3.8 Termination or Revocation of an Arbitration Agreement 

Chapter 4 Arbitrators

4.1 Introduction 

4.2 Requirements to Serve as Arbitrator

4.3 Number of Arbitrators 

4.3.1 Number of Arbitrators under the Arbitration Act 
4.3.2 Number of Arbitrators under the KCAB rules 

4.4 Choosing the Arbitrators

4.5 Method of Appointing Arbitrators 

4.5.1 Method of Arbitrator Appointment under the Arbitration Act
4.5.2 Court Involvement in the Appointment of Arbitrators
4.5.3 Method of Arbitrator Appointment under the KCAB Rules 

4.5.3.1 Party Agreement on Method of Arbitrator Appointment 
4.5.3.2 Lack of Party Agreement on Method of Arbitrator Appointment 

4.5.4 Appointment of Arbitrators in Multiparty Cases

4.6 Duties of Arbitrators

4.6.1 General Duties of Arbitrators
4.6.2 Duty of Independence and Impartiality
4.6.3 Duty to Disclose

4.6.3.1 Duty to Disclose under the Arbitration Act
4.6.3.2 Duty to Disclose under the KCAB Rules

4.6.4 Duty to Render an Award 

4.7 Powers of Arbitrators

4.7.1 Powers of Arbitrators under the Arbitration Act 
4.7.2 Powers of Arbitrators under the KCAB Rules 

4.8 Liabilities of Arbitrators 

4.9 Challenges to and Replacement of Arbitrators 

4.9.1 Challenges to Arbitrators 

4.9.1.1 Challenges to Arbitrators under the Arbitration Act 
4.9.1.2 Termination of an Arbitrator's Mandate 
4.9.1.3 Challenges to Arbitrators under the KCAB Rules 

4.9.2 Replacement of Arbitrators 

4.9.2.1 Replacement of Arbitrators under the Arbitration Act 
4.9.2.2 Replacement of Arbitrators under the KCAB Rules

4.10 Fees and Expenses of the Tribunal

4.10.1 Tribunal Fees and Expenses under the Arbitration Act 
4.10.2 Tribunal Fees and Expenses under the KCAB Rules 

4.11 Challenges to the Jurisdiction of the Tribunal

Chapter 5 Arbitration Procedure 

5.1 Introduction

5.2 KCAB and Its Arbitration Rules

5.2.1 KCAB
5.2.2 Arbitration Rules of the KCAB

5.2.2.1 Overview of Available Arbitration Rules 
5.2.2.2 Special Features

5.3 Main Stages of the Arbitration

5.4 General Principles

5.4.1 Party Autonomy 
5.4.2 Equality of Treatment 
5.4.3 Discretionary Powers of Arbitrators
5.4.4 Rule of Waiver and Duty to Object to Procedural Errors
5.4.5 Place of Arbitration
5.4.6 Language
5.4.7 Party Default 
5.4.8 Representation 

5.5 Commencement of Arbitration Proceedings

5.5.1 Requirements of the RFA

5.5.1.1 Common Requirements under Both the Arbitration Rules and International Rules 
5.5.1.2 Other Special Requirements under the Arbitration Rules
5.5.1.3 Other Special Requirements under the International Rules 
5.5.1.4 Number of Copies and Filing Fee

5.5.2 Answer and Counterclaims 

5.5.2.1 Requirements for the Response to the RFA 
5.5.2.2 Timing and Failure to File an Answer 
5.5.2.3 Request for an Extension of Time to File an Answer
5.5.2.4 Counterclaims

5.6 Conciliation and Settlement 

5.7 The Tribunal 

5.8 Preliminary Steps 

5.8.1 Objections to Jurisdiction 

5.8.1.1 Procedure and Practice 
5.8.1.2 Court Involvement 

5.8.2 Preliminary Meeting 

5.9 Written Submissions

5.9.1 Overview
5.9.2 Format 

5.10 Documents 

5.10.1 Overview 
5.10.2 Voluntary Production of Documents
5.10.3 Specific Requests for Documents 
5.10.4 Legal Privilege and Professional Secrets 
5.10.5 Practicalities
5.10.6 Electronic Disclosure and Future Trends 

5.11 Fact Witnesses

5.11.1 Overview 
5.11.2 Format 
5.11.3 Practicalities
5.11.4 Court Assistance 

5.12 Expert Witnesses

5.12.1 Overview
5.12.2 Party-appointed Experts
5.12.3 Tribunal-appointed Experts 
5.12.4 Challenges to Experts
5.12.5 Area of Expertise

5.13 Interlocutory Applications 

5.14 Evidentiary Principles

5.15 The Hearing

5.15.1 Opening Statements 
5.15.2 Procedure and Practice
5.15.3 Practicalities 

5.16 Confidentiality

Chapter 6 Arbitral Awards 

6.1 Introduction 

6.2 Decision-making Process of the Tribunal

6.2.1. Exercise of Discretion 
6.2.2. Amiable Compositeur and Ex Aequo Et Bono

6.3 Remedial Powers of a Tribunal 

6.3.1 Remedies in General 
6.3.2 Remedies under the KCAB Rules

6.4 Types of Arbitral Awards

6.4.1 Final Awards
6.4.2 Partial, Interim and Interlocutory Awards
6.4.3 Default Awards 
6.4.4 Consent Awards
6.4.5 Costs Awards

6.4.5.1 Costs Awards Generally 
6.4.5.2 Costs Awards under the KCAB Rules 
6.4.5.3 Categories of Arbitration Costs under the Arbitration Act
6.4.5.4 Categories of Arbitration Costs under the KCAB Rules
6.4.5.5 Legal Fees and Expenses
6.4.5.6 Filing Fees 
6.4.5.7 Administrative Fees
6.4.5.8 Fees and Expenses of Arbitrators
6.4.5.9 Other Expenses

6.4.6 KCAB Procedures Regarding Advance on Costs and Refunds
6.4.7 Challenges to Costs Awards

6.5 Formal Requirements of Arbitral Awards 

6.5.1 Arbitration Act 
6.5.2 KCAB Rules

6.6 Time Limits, Notification, Registration and Deposit of Awards

6.6.1 Arbitration Act 
6.6.2 KCAB Rules

6.6.2.1 Time Limit for Rendering Award
6.6.2.2 Delivery and Assistance with Required Formalities 

6.7 Effects of Arbitral Awards 
6.8 Correction and Interpretation of Arbitral Awards

Chapter 7 Court Involvement in the Arbitral Process 

7.1 Introduction

7.2 Court Role in Maintaining the Effectiveness of the Arbitral Process 

7.2.1 Court-ordered Interim Measures 
7.2.2 Court Assistance in the Taking of Evidence 
7.2.3 Court Assistance in Challenges to Experts 
7.2.4 Deposit of the Original Copy of an Arbitral Award with the Court
7.2.5 Court Review and Approval of KCAB Arbitration Rules

7.3 Court Assistance in the Formation and Composition of the Arbitral Tribunal 

7.4 Court Review of the Existence, Validity or Scope of an Arbitration Agreement 

7.4.1 Court Review of a Tribunal's Jurisdiction
7.4.2 Applications to Dismiss a Lawsuit Due to the Existence of an Arbitration Agreement

Chapter 8 Interim Measures

8.1 Overview 

8.2 Provisional Attachment 

8.3 Provisional Injunction / Disposition 

8.4 Interim Measures through the Courts 

8.5 Interim Measures through an Arbitral Tribunal 

8.6 Comparative Advantages of Court-ordered Interim Measures
8.7 Comparative Advantages of Tribunal-ordered Interim Measures

Chapter 9 Setting Aside and Recognizing and Enforcing Awards in Korea

9.1 Introduction

9.2 Structure of the Arbitration Act 

9.2.1 Domestic Awards vs. Foreign Awards
9.2.2 Setting Aside vs. Recognition and Enforcement

9.2.2.1 Setting Aside
9.2.2.2 Recognition and Enforcement

9.3 Procedures for Setting Aside and Recognizing and Enforcing Awards 

9.3.1 Generally
9.3.2 Setting Aside Domestic Awards 
9.3.3 Recognizing and Enforcing Awards 

9.3.3.1 Domestic Awards
9.3.3.2 NYC Awards 
9.3.3.3 Non-NYC Awards 

9.4 Grounds for Setting Aside and Recognizing and Enforcing Awards . 268

9.4.1 Generally 
9.4.2 Domestic Awards
9.4.3 NYC Awards
9.4.4 Non-NYC Awards 

9.5 Korean Court Precedents concerning Domestic Awards and NYC Awards

9.5.1 Invalidity of the Arbitration Agreement
9.5.2 Breach of Due Process 
9.5.3 Exceeding the Tribunal's Authority/Scope of Arbitration Agreement 
9.5.4 Breach of the Applicable Procedural Rules 
9.5.5 Non-arbitrable Subject Matter 
9.5.6 Breach of Public Policy

9.5.6.1 Domestic Awards
9.5.6.2 NYC Awards

Appendices

Appendix A: Arbitration Act

Appendix B: Korean Commercial Arbitration Board
Domestic Arbitration Rules

Appendix C: Korean Commercial Arbitration Board
International Arbitration Rules

 

Index 

About the firm:

Bae, Kim & Lee's International Arbitration and Litigation Group has earned worldwide respect for its forceful and uncompromising representation of clients. In a field where experience counts, BKL boasts Korea's first dedicated international arbitration practice group. Having been at the forefront of the field in Korea for the past 10 years, the team is now composed of 16 attorneys from several jurisdictions plus paralegals and staff, and includes a former Counsel of the ICC Secretariat and several members listed in leading publications including Who's Who Legal, Chambers, and Asia-Pacific Legal 500. This year, reflecting the team's progress and current international standing, BKL received the Arbitration Win of the Year award from Global Arbitration Review (GAR) and had the honor of being the first and only Korean firm ever listed in the "GAR 30," awarded to the 30 top arbitration practices worldwide.

 

General Editors:

Kap-You (Kevin) Kim is Head of the International Arbitration and Litigation Practice Group and Partner of Bae, Kim & Lee LLC. Mr. Kim has the distinct honor of being a Court Member of the ICC Court of Arbitration and the London Court of International Arbitration, listed ICSID arbitrator, Senior Advisor to the Korean Commercial Arbitration Board, Vice Chair of the IBA Arbitration Committee and a Board Member of the American Arbitration Association.

 

John P. Bang is Partner (foreign legal adviser) and co-founder of Bae, Kim & Lee's International Arbitration and Litigation Practice Group. Mr. Bang has acted as counsel in over 75 commercial arbitral proceedings in Asia, Europe and the US under the rules of all major international arbitral institutions including, among others, the ICC, ICSID, LCIA, SIAC, JCAA, and KCAB (Korean Commercial Arbitration Board) and numerous litigation proceedings in various foreign jurisdictions. He was named in the Global Arbitration Review’s "45 under 45" for 2011, which lists the leading figures of the international arbitration bar under the age of 45

Contributing Authors:

Seungwoo (Sean) Cho

Matthew J. Christensen

Kyongwha Chung

Seung Il Hong

Woochul Hwang

Eun Ah Jeung

Byoung Pil Kim

Hong-Joong Kim

Junu Kim

Sue Hyun Lim

David W. MacArthur

James Morrison

JongKwon Ryoo

Yunsoo Shin

Sung Woo Yang

Seokchun Yun

"The book is a welcome resource for anyone practising in Korea or involved in Korea-related arbitrations. It will also be eagerly read by students and others interested in arbitration in Korea. The book is the product of contributions by no fewer than 18 authors. The General Editors are to be congratulated for publishing this useful and timely volume."
-Asian Dispute Review (July 2012); review by Benjamin Hughes, Shin & Kim, Seoul
 

"Many legal communities have, over the recent decades, sought to enhance their engagement with international commercial arbitration, and the quality of their participation in the process. No country has seen faster development in less time than Korea. It is a testament to the farsightedness and determination of its remarkably dynamic legal community, which has been transformed in the course of a single generation. This volume helps explain the phenomenon."
-Jan Paulsson, Co-head of Freshfields Bruckhaus Deringer's international arbitration and public international law groups and President of the International Council for Commercial Arbitration.

 

"This is an especially timely work in light of Korea’s rapid rise to importance as a player in international arbitration in recent years. It gives me great pleasure to see that one of the leading arbitration teams in Korea – a team that has appeared before me on several occasions, always to impressive effect – has taken the initiative to contribute a work such as this to the field. I have no doubt but that readers of this work will find in it all that is essential to know about arbitration in Korea, from rules and statutes to relevant court precedents, as well as the hard-earned know-how of a top group of arbitration practitioners."
-Michael Moser, past Chairman (2007-2011) of the Hong Kong International Arbitration Centre (HKIAC) and Vice-Chair of the IBA Committee on Arbitration.

 

"To many observers, Korea is well known for its rapid economic growth in the past few decades. But the dynamism of commerce and trade would not have been possible without a reliable and sophisticated legal framework and adjudication mechanism. This work will give a most authoritative and pertinent account of the arbitration law and practice of Korea. The contributors are among the best in the field who have accumulated an impressive reputation over the years. Practitioners of international arbitration will find this work extremely useful. Those who wish to know the Korean legal environment of doing business will feel fortunate to have this volume."
-Professor Keechang Kim, Korea University Law School