• Journal of Arbitration Studies
• /
• v.22 no.3
• /
• pp.25-46
• /
• 2012

China instituted arbitration law on September 1, 1995, after having legislated the law under the UNCITRAL Model Law. However, Chinese arbitration law has some problems related to the effectiveness of its arbitration agreement, unlike the UNCITRAL Model Law. Thus, parties in dispute who want to settle a dispute based on Chinese arbitration law as governing law have more to take into consideration because there could be serious problems related to the effectiveness of the arbitration agreement. Therefore, this paper attempted to analyze the classification of jurisdiction related to the authorization of effectiveness in arbitration agreement of arbitral organization and Chinese, verify the problems, and suggest the solutions. Moreover, the author tried to verify the problems in applying the law related to the authorization of effectiveness in Chinese arbitration agreements and suggest some improvements. This paper also suggests improvements and problems related to the selection of arbitral organizations among several conditions for effective arbitration agreement in Chinese arbitration law. Finally, the author suggests some cautions and countermeasures related to arbitrations agreement for domestic investors and traders dealing with the Chinese.

• Journal of Arbitration Studies
• /
• v.8 no.1
• /
• pp.87-122
• /
• 1998

This study reports on the Arbitration system in the China International Economic and Trade Arbitration commission (CIETAC) and the International Arbitration problems of Korea and China. The Chines laws including Arbitration laws are influenced by the civil Code system Particulary the German system. China is contracting state of the U N Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention), which became effective in the China April 22, 1987. International Commercial Arbitration is popular in China. CIETAC is the sole International Commercial Arbitration body in China. CIETAC has two sub-commissions, on is shen zhem S E Z and the other in shanghai. The CIETAC rules, are similar to the rules in effect in Countries using a civil Code system. Both an agreement to submit an existing dispute to Arbitration and an Arbitration clause in a contract relating to future disputes are recognizeal as valiad Arbitration agreements. CIETAC has the power to make a decision on disputes concering the validity of the Arbitration agreements, or jurisdiction over a specicific case.

• Journal of Arbitration Studies
• /
• v.28 no.4
• /
• pp.3-42
• /
• 2018

This paper aims to explore ways to develop the arbitration industry in Korea. The prospects for the promotion of the arbitration industry in Korea are never dim. International arbitration competitiveness is somewhat lower than its competitors at present, but the international economic base to support it is solid, and the domestic arbitration environment seems to be sufficient to support the development possibility of arbitration. Since geographical and economic factors have already been defined, Korea must at least improve the arbitration act with passion and vision for the best one. The arbitration act that is the most accessible to arbitration consumers is the best arbitration act. The important thing is to have an arbitration act that makes people want to use more than litigation or other dispute resolution procedures. There is no hope of remaining as a "second mover" in the field of arbitration law. One should have a will and ambition to become a "first mover" even if it is risky. Considering the situation of the current arbitration law, it is necessary to start an arbitration appeal system in order to become a consumer-friendly arbitration law, and it is necessary to examine ways of integrating the grant of execution clause and enforcement application procedures. The abolition of the condition of Article 35 of the Arbitration Act, which rules the validity of the arbitration award, will help promote international arbitration. Exclusion agreements of setting aside against arbitration awards must also be fully recognized. It is also important to publish a widely cited international arbitration journal. In order to respond to the fourth industrial revolution era, it is necessary to support the establishment of a dispute resolution system that utilizes IT technology. In order to actively engage the arbitrators in the market, it is necessary to abolish the regulations that exist in the Attorneys-at-Law Act. There is also a need to allocate more budget to educate arbitration consumers and to establish arbitration training centers to strengthen domestic arbitration education. It is also necessary to evaluate and verify the Arbitration Promotion Act so that it can achieve results. In the international arbitration market, competition is fierce and competitors are already taking the initiative, so in order not to miss the timing, Korea needs to activate international arbitration first. In order to activate international arbitration, the arbitration body needs to be managed with the same mobility and strategy as the agency in the marketplace. In Korea, unlike in Singapore and Hong Kong, it is necessary to recognize that the size of the domestic arbitration market is very likely to increase sharply due to the economic size of the country and the large market potential it can bring from litigation. In order to promote the arbitration industry, what is most important is to make arbitration activities in accordance with the principles of the market and to establish an institutional basis to enable competition. It is urgently required to change the perception of the relevant government departments and arbitration officials.

• Journal of Arbitration Studies
• /
• v.13 no.1
• /
• pp.169-205
• /
• 2003

Arbitration means the procedure that a party inquires a third party arbitrator for a resolution on the dispute on certain matters of interest to follow through with the commitment of the arbitration, and a series of procedures performed by the arbitrator of the Korean Commercial Arbitration Board. Arbitration is implemented in accordance with the procedure determined by the Arbitration Act and Arbitration Regulations. In the event the parties reach to the reconciliation during the process of arbitration, the reconciliation is recorded in the form of arbitration award(decision), and in the event a reconciliation is not made, the arbitrator shall make the decision on the particular case. The arbitration award(decision) for reconciliation during the arbitration procedure (Article 31 of Arbitration Act, hereinafter referred to as the 'Act') or the mediation under the Arbitration Regulation of the Korean Commercial Arbitration Board (Article 18 of the Arbitration Regulations) shall have the same effectiveness with the decision rendered by a court that, in the event a party does not perform the obligation, the enforcement document is rendered under the Rules on Enforcement Document on Mediation Statement of various dispute resolution committees of the Supreme Court to carry out the compulsory enforcement. However, in the event that the party to take on the obligation to perform under the arbitration award (decision) rendered by the arbitrator (Article 32 of the Act) does not perform without due cause, a separate enforcement decision in accordance with the procedure determined under the Civil Enforcement Act shall be obtained since the arbitration award(decision) cannot be the basis of enforcement under the Civil Enforcement Act. And, in order to enforce the judgment compulsorily in accordance with the regulations under the Civil Enforcement Act under the foreign arbitration judgment (Article 39 of the A.1), it shall fulfill the requirement determined under the Civil Litigation Act (article 217 of Civil Litigation Act) and shall obtain a separate enforcement decision in accordance with the procedure determined under the Civil Enforcement Act (Article 26 and Article 27 of Civil Enforcement Act) since the arbitration judgment of foreign country shall not be based on enforcement under the Civil Enforcement Act. It may be the issue of legislation not to recognize the arbitration award(decision) as a source of enforcement right, and provide the compulsive enforcement by recognizing it for enforcement right after obtaining the enforcement document with the decision of a court, however, not recognizing the arbitration award(decision) as the source of enforcement right is against Clause 3 of Article 31 of the Act, provisions of Article 35, Article 38 and Article 39 that recognized the validity of arbitration as equal to the final judgment of a court, and the definition that the enforcement decision of a court shall require the in compulsory enforcement under Clause 1 of Article 37 of the Act which clearly is a conflict of principle as well. Anyhow, in order to enforce the arbitration award(decision) mandatorily, the party shall bring the litigation of enforcement decision claim to the court, and the court shall deliberate with the same procedure with general civil cases under the Civil Litigation Act. During the deliberation, the party obligated under the arbitration award(decision) intended to not to undertake the obligation and delay it raises the claim and suspend the enforcement of cancelling the arbitration award(decision) on the applicable arbitration decision within 3 months from the date of receiving the authentic copy of the arbitration award(decision) or the date of receiving the authentic copy of correction, interpretation or additional decision under the Regulation of Article 34 of the Act (Clause 3 of Article 36 of the Act). This legislation to delay the sentencing of the enforcement and then to sentence the enforcement decision brings the difficulties to a party to litigation costs and time for compulsory enforcement where there is a requirement of an urgency. With the most of cases for arbitration being the special field to make the decision only with the specialized knowledge that the arbitrator shall be the specialists who have appropriate knowledge of the system and render the most reasonable and fair decision for the arbitration. However, going through the second review by a court would be most important, irreparable and serious factor to interfere with the activation of the arbitration system. The only way to activate the arbitration system that failed to secure the practicality due to such a factor, is to revise the Arbitration Act and Arbitration Regulations so that the arbitration decision shall have the right to enforce under the Rules on Enforcement Document on Mediation Statement of various dispute resolution committees of the Supreme Court.

• Journal of Arbitration Studies
• /
• v.22 no.1
• /
• pp.43-63
• /
• 2012

Media ADR is currently emerging as one of successful cases in South Korea while environmental ADR was known not to satisfy both defendants and offenders. Thus, this paper is intended to present proper remedies for typical compensation schemes of environmental ADR by comparing the two ADRs regarding legal reservation of compensation clause. It was found that the media ADR helped clients achieve a more fast and easy dispute resolution by providing compensation standards based on various categories such as types and scopes of compensation. However, the compensation scheme of environmental ADR brought out public complaints and inadequate services due to inconsistency and instability in terms of legal reservation. The results indicate that the compensation clause based on the reservation of laws in media ADR could be used not only as a checklist to confirm limitations of environmental ADR, but also as realistic evidences to adjust the compensation standard systematically that is under development and requires remodelling. As a result, the research findings have opened the new possibilities of "the quality assurance of environmental ADR based on the domestic legislation", proposed as an initial aim of this paper.

• Journal of Arbitration Studies
• /
• v.16 no.3
• /
• pp.53-89
• /
• 2006

At its thirty-second session(Vienna, 17 May-4 June 1999), the UNCITRAL decided that the priority items for the Working Group(Arbitration and Conciliation) should include enforceability of interim measures and the requirement of written (on for the arbitration agreement. The Working Group, at its forty-third session(Vienna, 3-7 October 2005), it had undertaken a detailed review of the text of the revised article 17 of UNCTTRAL Model Law on International Commercial Arbitration, and it had resumed discussions on a draft model legislative provision revising article 7, paragraph (2) of UNCITRAL Model Law. The purpose of this paper is to make research on the contents and issues of the draft legislative provisions on interim measures and preliminary orders, and on the form of arbitration agreement which the Working Group discussed and adopted at its forth-fourth session(New York, 23-27 January 2006). The draft legislative provisions on interim measures and preliminary orders are composed of the following provisions : Article 17-power of arbitral tribunal to order interim measures; article 17 bis-conditions for granting interim measures; article 17 ter-applications for preliminary orders and conditions for granting preliminary orders; article 17 quater-specific regime for preliminary orders; article 17 quinquies- modification, suspension, termination; article 17 sexies-provision of security; article 17 septies-disclosure; article 17 octies-costs and damages; article 17 novies recognition and enforcements; article 17 decies-grounds for refusing recognition or enforcement; article 17 undecies-court-ordered interim measures. There are the following issues in the draft legislative provisions on interim measures and preliminary orders : form of issuance of an interim measures in article 17(2); conditions for granting interim measures in article 17 bis; purpose, function and legal regime of preliminary orders in article 17 ter; obligation of arbitral tribunal to give notice, and non-enforceability of preliminary orders in article 17 quater; burden of proof, interplay between article 17 decies and article 34, and decision on the recognition and enforcement of the interim measures in article 17 decies; placement of article 17 undecies; amendment of scope exception of application in article 1(2). The draft legislative provisions on the form of arbitration agreement are composed of the following provisions : article 7(1) definition of arbitration agreement; article 7(2) arbitration agreement in writing; article 7(3) arbitration agreement if its terms(content) are (is) recorded in any form; article 7(4) arbitration agreement by an electronic communication; article 7(5) arbitration agreement in an exchange of statements of claim and defence; article 7(6) reference to any document containing an arbitration clause. There are the following issues in the draft legislative provisions on the form of arbitration agreement : arbitration agreement in writing in article 7(2); terms or contents of arbitration agreement in article 7(3); arbitration agreement by electronic communication in article 7(4); existence of arbitration agreement in article 7(5); reference to any document containing an arbitration clause in article 7(6); the alternative proposal on article 7; amendment to article 35(2).

• Journal of Arbitration Studies
• /
• v.14 no.2
• /
• pp.173-198
• /
• 2004

Recently in Korea, franchise system has been specially used in the distribution industry. However, it also brought up many problems caused by various issues between franchisor and franchisee. The purpose of this article is to review recent trend of the franchise transaction contracts and resolution of the disputes in Korea. And to expand to use of ADR(Alternative Dispute Resolution) system as a practical dispute settlement procedure including mediation and arbitration. Arbitration means a procedure to settle any dispute in private laws, not by the adjudication of a court, but by the award of an arbitrator or arbitrators, as agreed by the parties. Arbitration agreement is a prerequisite for either party to a dispute to commence arbitral proceeding and may be in the form of a separate agreement or in the form of an arbitration clause in a contract and shall be in writing.

• Journal of Arbitration Studies
• /
• v.28 no.1
• /
• pp.99-123
• /
• 2018

Korean businesses engaging in transactions with U.S. entities are increasingly favoring arbitration clauses to address unexpected disputes. How best ought the parties' arbitration contractual terms be drafted to avoid lengthy, protracted and expensive legal disputes? Authors examine the public policy favoring arbitration through the U.S. Federal Arbitration Act. Korean litigants seeking a "Motion to Compel Arbitration" rely on arbitration clauses designed to address four factors U.S. courts use to evaluate the enforceability of arbitration contract clauses. What role does U.S. state court jurisdiction hinder or help Korean businesses contracting with U.S. business entities located within certain boundaries? What is the effect of an arbitration clause that designates the Korean Commercial Arbitration Board in Seoul to arbitrate? All cases analyzed entail Korean business entities. Eleven cases demonstrate the results of seeking motions to compel arbitration in U.S. courts. Three cases illustrate motions to compel arbitration drafted to use the Korean Commercial Arbitration Board in Seoul. The results provide Korean businesses and legal practitioners insight into addressing the specific goals of including contractual arbitration clauses to enhance their international commercial interests in the United States.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.76
• /
• pp.49-76
• /
• 2017

Lex arbitri, a law that regulates arbitration procedures at arbitral seat, can be viewed as an additional procedural law. In addition, the lex arbitri refers to mandatory provision imposed by each country on arbitrators in their own territory. The reason is that the lex arbitri often relates to matters of public policy of the place of arbitration. In Korea, the LMAA terms is frequently mentioned in the shipping industry in Korea, and the LMAA terms clause is often set up in the contract between Korean companies. However, the study of the UK Arbitration Act 1996, which regulates the LMAA arbitration, is not so much in Korea. On the other hand, Lex Arbitri, a corporation that regulates mediation procedures in arbitration, can be viewed as an additional procedure. There may also be procedures that must be followed compulsorily by the Arbitration Act of Arbitration. The reason is that Lex Arbitri seems to be related to the public policy of the arbitration. Therefore, the arbitration law of the country of arbitration seat may be the most important regulations in relation to the legality of the arbitration procedure. If the proceedings of the arbitration violate the Lex Arbitri, the arbitral award may be nullified. The purpose of this study is to analyze the arbitration theory, international arbitration and Lex Arbitri, focusing on the UK Arbitration Act 1996.

• Journal of Arbitration Studies
• /
• v.11 no.1
• /
• pp.121-143
• /
• 2001

Arbitration agreement is an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of defined legal relationship, whether contractual or not. Arbitration has become increasingly popular in settling international and domestic commercial disputes nowadays. The importance of arbitration agreement cannot be overemphasized. It is the most reasonable way to settle commercial disputes. There are two types in arbitration agreement. one is arbitration clause, the other is submission agreement. The arbitration agreement must be made in writing, in addition, other communication instruments shall be considered as effective arbitration agreement if they are properly documented. Over the past few decades, a considerable number of studies have been conducted on the legal property of arbitration agreement in Germany and Japan. Its legal property is aspect of substantial law contract. The basis of arbitration agreement is the principle of party autonomy. The important effect of arbitration agreement is to preclude jurisdiction from national court. The respondent shall raise a plea not later than when submitting his first defense on the merits of the action. As positive effect of arbitration agreement, the court must support the conduct of arbitral proceedings and arbitrator can be appointed upon request of a party.