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

• Journal of Arbitration Studies
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• v.15 no.2
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• pp.61-91
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• 2005

It is well recognized that the availability of prompt, effective and economical means of dispute resolution is an important element in the orderly growth and encouragement of international trade and investment. Increasingly, ADR(Alternative Dispute Resolution) including arbitration and mediation, instead of litigation in national courts, has become the preferred means of resolving private international commercial disputes. Under the situation, efforts for settlement of trade and investment disputes by ADR have been made between Korea and China through trade and investment agreements and arbitration agreement. Judging from the importance of economic exchange between Korea and Qingdao including Shandong Province, The Korean Commercial Arbitration Board(KCAB) and The Qingdao Arbitration Commission(QAC) should strengthen mutual cooperation to develop efficient methods of resolving commercial disputes arising between the two countries and to assist parties in solving those disputes through conclusion of arbitral agreement. Recently, efforts for conclusion of a Korea-China-Japan Free Trade Agreement(FTA) received strong support at Korea-Japan and Korea-China Summit Meeting held on June and July, 2003 respectively. If the conclusion of FTA among the three countries would be realized, it would promote regional trade and investment, contributing to economic growth in the Northeast Asian region. Under the circumstances, the key arbitral institutions including KCAB and QAC should consider to take the initiative in setting up tentatively called ${\ulcorner}$Joint Arbitration Center for Northeast Asia${\lrcorner}$ for which the CAMCA of NAFTA will be the good example.

• Journal of Arbitration Studies
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• v.12 no.2
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• pp.303-336
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• 2003

Incorporation of an arbitration clause by reference to other documents occurs in many international business transactions. The reference is either to another document that contains arbitration clause or to trading rules which contain the arbitration clause, without the main contract mentioning that arbitration has been agreed upon. In fact, incorporation by reference in to a contract of an arbitration clause set forth in another agreement is deemed valid in any number of circumstances, even when the parties to the two contractual instruments are not the same. Difficulties arise when, instead of an express arbitration provision, a contract contains a clause which refers to the trading rules of a certain trade association, so-called external arbitration clause. The U.S. courts which will presume that the parties intended to arbitrate under a particular set of rules when they expressly mentioned arbitration in their agreement, have sometimes refused to enforce contract clauses that do no more than refer to particular trading rules, even if these rules contain provisions binding the parties to arbitrate their disputes. The courts in such cases tend to be careful in determinig whether intent to arbitrate is present. In maritime contracts, the arbitration clause in a charter party is often referred to in the bill of lading. Such reference usually is held binding upon the parties to the contract of carriage, their knowledge of such practice being presumed. A nonsignatory may compell arbitration against a party to an arbitration agreement when that party has entered into a separate contractual relationship with the nonsignatory which incorporates the existing arbitration clause. If a party's arbitration clause is expressly incorporated into a bill of lading, nonsignatories … who are linked to that bill … may be bound to the arbitration agreement of others. An arbitration clause in a charterparty will be incorporated into a bill of lading if either - (a) there are specific words of incorporation in the bill, and the arbitration clause is so worded as to make sense in the context of the bill, and the clause dose not conflict with the express terms of the bill; or (b) there are general words of incorporation in the bill, and the arbitration clause or some other provision in the charter makes it clear that the clause is to govern disputes under the bill as well as under the charter. In all other cases, the arbitration clause is not incorporated into the bill.

• Journal of Arbitration Studies
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• v.12 no.2
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• pp.263-302
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• 2003

Since new Korean arbitration law was modeledafter UNCITRAL Model Law on International Commercial Arbitration Law, the judicial review on the arbitral award is at most limited to fundamental procedural justice. Thus, drafting valid arbitration clause is paramount important to enforce arbitral awards in the new legal environment. A losing party in arbitral process would often claim of the invalidity of arbitration agreement to challenge the arbitral award. Especially, the validity of arbitration clause in the construction contracts is often challenged in Korean courts. This is because the construction contracts usually include selective arbitration agreement in multi-tiered dispute resolution clause that is drafted ambiguous or uncertain. In this paper selective arbitration agreement means a clause in a contract that provides that party may choose arbitration or litigation to resolve disputes arising out of the concerned contract. On the hand multi-tiered dispute resolution clause means a clause in a contract that provides for distinct stages such as negotiation, mediation or arbitration. However, Korean courts are not in the same position on the validity of selective arbitration agreementin multi-tiered dispute resolution clause. Some courts in first instance recognized its validity on the ground that parties still intend to arbitrate in the contract despite the poor drafted arbitration clause. Other courts reject its validity on the ground that parties did not intend to resort to arbitration only with giving up their right to sue at courts to resolve their disputes by choosing selective arbitration agreement. Several cases are recently on pending at the Supreme Courts, which decision is expected to yield the court's position in uniform way. Having reviewed recent Korean courts' decisions on validity and applicability of arbitration agreement, this article suggests that courts are generally in favor of arbitration system It is also found that some courts' decisions narrowly interpreted the concerned stipulations in arbitration law despite they are in favorable position to the arbitration itself. However, most courts in major countries broadly interpret arbitration clause in favor of validity of selective arbitration agreement even if the arbitration clause is poorly drafted but parties are presume to intend to arbitrate. In conclusion it is desirable that selective arbitration agreement should be interpreted favorable to the validity of arbitration agreement. It is time for Korean courts to resolve this issue in the spirit of UNCITRAL model arbitration law which the new Korean arbitration law is based on.

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

• International Commerce and Information Review
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• v.19 no.2
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• pp.169-190
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• 2017

The purpose of this article by looking into the international commercial arbitration system of China is to provide solutions regarding commercial disputes that may occur in trade between China and Korea. For the research, literature review based on the Chinese Arbitration Law and CIETAC Arbitration Rules was employed. According to the research, the arbitration system of China applies partially differentiated legislation between domestic and international arbitration rules, unaccepting any ad-hoc arbitration, a limitation to the party autonomy, a deficiency of independence given to the arbitral institution, the participation of jurisdiction on arbitration is severe and it brings hardships in the execution of arbitral award. Beside these, in China's arbitral institution the jurisdiction directly progresses adjustments during the arbitration procedure and the following result is written as the award. Thus, the research is expected to provide legal and practical solutions to the commercial dispute with Chinese companies by looking into the main contents of legislations of the international commercial arbitration system in China.

• Journal of Arbitration Studies
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• v.23 no.2
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• pp.55-79
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• 2013

As arbitration becomes an increasingly popular mode of resolving disputes, neighboring industries begin to take notice. This interest is reflected in the increasing utilization of third party funding in international arbitration claims. In this regard, the third party funding industry appears particularly interested in investor-state arbitration claims because they typically involve considerable claim amounts and substantial legal fees. To examine this trend more closely, this paper, firstly, examines the investor-state arbitration more precisely in Chapter II. In Chapter III, this study continues to examine some legal issues which can arise as a result of a conflict of interest between the parties to the funding agreement including, inter alia, 1) a dispute in which the funder terminates the agreement during the arbitration proceedings, 2) a dispute in relation to a funder's intervention in arbitration proceedings, and 3) a dispute on the responsibility for adverse costs orders, if any. This paper further identifies major legal issues which can arise in relation to 1) disclosure of existence of the funding agreement, 2) attorney-client privilege. Lastly, in Chapter IV, this paper provides some lessons from an in-depth case study on third party funding agreements and solutions to avoid and to solve prospective disputes in the future.

• Journal of Arbitration Studies
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• v.13 no.2
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• pp.211-234
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• 2004

When there is a dispute in international commercial contracts, the arbitration system, which is an ADR system, is often utilized. The Arbitration system can only be put to use when there is an arbitration agreement between the parties concerned, but even in this case, the one party of the contract tries to avoid the braking of the arbitration. In this case, separability doctrine and Kompetenz-Kompetenz doctrine can be used for the smooth operation of the Arbitration system. This paper reviews these two doctrines, taking a close look at UNCITRAL, ICC, America's FAA and case examples, and France's system and its case examples. U.S. has adopted separability doctrine for the Prima paint case but not the Kompetenz-Kompetenz doctrine. English has adopted separability doctrine for the Heyman case but not the Kompetenz-Kompetenz doctrine. However in France, both doctrines are adopted. France, which accords international arbitration the most highly favorable status of the three nations, has developed the legal framework that best promotes the public policy goal of encouraging the use of arbitration agreements in international commerce. In Korea, the above doctrines are prescribed in Article 17 of the arbitration law, as prescribed by the UNCITRAL Model law. However it takes the form of German laws. The adoption of the French system would have been wiser considering the promotion of the arbitration system.

• Journal of Arbitration Studies
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• v.17 no.3
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• pp.101-119
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• 2007

Arbitration is contractual by nature. One cannot be required to submit to arbitration any dispute which he has not agreed to so submit. As commercial transactions become increasingly complex, involving multiple parties and numerous contracts for a single transaction, however, limiting the parties who are subject to arbitration to only those who have signed a contract containing an arbitration clause would frustrate the purpose of such arbitration clause and might lead to injustice among the relevant parties. Therefore, U.S. courts have recognized a number of theories under which non-signatories may be bound to the arbitration agreement of others: (1) incorporation by reference; (2) assumption; (3) agency; (4) veil-piercing/alter ego; and (5) estoppel. Incorporation by reference and veil-piercing theories have already been recognized by Korean courts. Agency theory and estoppel theory are not recognizable under Korean law. However, the same or similar result may be achieved by applying the third party beneficiary theory or assumption by third party theory. Although a couple of Supreme Court cases appear to be at odds with the assumption theory, on the basis of the recent amendments to the Arbitration Act, such court precedents can be and should be reversed.

• Journal of Arbitration Studies
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• v.16 no.1
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• pp.45-80
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• 2006

The purpose of this paper is to make research on the method of arbitration agreement, the adoption and contents of the Convention on the Use of Electronic Communications in International Contracts, and the standpoint and problem with reference to the new Convention's application to the method of arbitration agreement in New York Convention. Last year the UN General Assembly and UNCITRAL adopted a new Convention on the Use of Electronic Communications in International Contracts that makes agreements by electronic communications enforceable, including arbitration agreements under the Convention on the Recognition and Enforcement of Foreign Arbitral A wards (New York Convention). Aimed at enhancing legal certainty and commercial predictability where electronic communications are used in relation to international contracts, the provisions of the Convention deal with, among other things, determining a party's location in an electronic environment; the time and place of dispatch and receipt of electronic communications; and the use of automated message systems for contract formation. Under the New York Convention, arbitration agreements in international contracts must be reduced to writing before they can be enforced. But under the new Convention, an arbitration agreement made entirely in electronic form would be enforceable. The working group expressed overall support in favor of the inclusion of a reference to the New York Convention in the new Convention. However, one proposal was that the exclusions provided under article 2 of the new Convention might be too broadly worded to adequately accommodate the New York Convention. In conclusion, Korea's government authorities should take prompt measures to sign and ratify the new Convention, and declare on the scope of its application. Also Korea's arbitration institute should make preparation for the amendment of the arbitration act and arbitration rules in accordance with the new Convention.