Korea - Chapter 8 - International Commercial Arbitration in Asia - 3rd Edition
Byung-Chol Yoon is a Partner at Kim & Chang in Seoul, Korea, and head of the firm’s International Arbitration Group.
Grant L. Kim is Of Counsel at Morrison & Foerster LLP in San Francisco, California, and previously worked at Kim & Chang in Seoul, Korea, from 2000 to 2004.
Chul-Won Lee is an Attorney at Kim & Chang in Seoul, Korea. He previously worked as a Korean district court judge.
Since emerging as one of the significant trading countries in Asia in the 1960s, the Republic of Korea1 has seen a rapid increase in the use of arbitration as a convenient and reliable tool to resolve international business disputes. Korea first enacted its Arbitration Act in 1966. In the same year, Korea also established a permanent commercial arbitration committee as a section of the Korea Chamber of Commerce and Industry, so as to promote international trade and to facilitate the resolution of disputes arising out of international trade and transactions. In 1970, the arbitration committee became a full-fledged arbitral institution with separate legal status, known as the Korean Commercial Arbitration Board (“KCAB”). In 1973, Korea ratified the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 (“the New York Convention”). Due to Korea’s unprecedented economic growth and the explosive increase in international trade since that time, the KCAB has dealt with a rapidly growing number of arbitration cases not only between domestic companies but also involving foreign entities. Korea has also become a place of arbitration for many disputes supervised by internationally renowned arbitral institutions such as the International Chamber of Commerce (ICC).
Arbitration in Korea
II. The Legal Framework for International Commercial Arbitration in Korea
A. Applicable Laws
B. The Role of Courts with Respect to Arbitrations in Korea
C. Parallel Court and Arbitral Proceedings
D. The Form and Scope of Arbitration Agreements
E. The Scope of Arbitrable Claims
F. Choice of Law and the Permissibility of Lex Mercatoria or Equity
G. Selection of and Challenge to Arbitrators
H. Place and Language of Arbitration
I. Conduct of the Arbitration Proceedings
J. Issuance and Correction of the Arbitral Award
III. Arbitration Practice in Korea
A. Rapid Growth of Korean International Arbitration Practice
B. KCAB Arbitration
1. Background on the KCAB
2. The KCAB International Arbitration Rules
C. Practical Considerations for Korean International Arbitrations
IV. Enforcement and Setting Aside of Arbitral Awards
A. General Structure for Enforcement
B. Enforcement and Setting Aside of Domestic Arbitral Awards
C. Enforcement of Foreign Arbitral Awards
D. Korean Courts and the Enforcement of Arbitral Awards