• Korea Trade Review
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• v.47 no.1
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• pp.163-180
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• 2022

The purpose of this study is to examine the extent to which smart contracts can be applied to the software export business and to find out the legislative issues to activate smart contracts. A smart contract is a computer program that automatically executes a contract when conditions are fulfilled. Smart contracts can play a pivotal role in the field that requires immediate execution of contract or in a highly standardized field with multiple parties involved. In the software export business, it is desirable to apply the smart contract partially rather than applying the smart contract to the entire process because various parties are involved and the process is very complicated. The business model of exporting packaged software, a completed software that is mainly licensed for use, rather than the business model of exporting customized software is suitable for using smart contracts because the project for implementing customized software is mainly focused in the development stage. When smart contracts are used in processes such as contract signing, payment, and project management, work efficiency can be increased. In addition, smart contracts can be used when conditions can be quantified, such as error penalties, in areas that previously required contracts with third parties such as banks, guarantors. In order for smart contracts to be actively used in practice, legal reviews on various issues are necessary including the legality of a smart contract and the validity as an electronic document of NFT (non-fungible token) certificate. Also, for the system stability preventing hacking, etc, the periodic verification or inspection by a third party is essential. To activate smart contracts in international transactions the international treaty regarding smart contracts is also necessary.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.13
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• pp.43-68
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• 2000

Incoterms mean the ICC official rules for the interpretation of trade terms which facilitate the conduct of international trade. Thus, the uncertainties of different interpretations of such terms in different countries can be avoided or at least reduced to a considerable degree. Nevertheless, Incoterms has been revised successively to adapt them to contemporary commercial practice. In particularly, substantive changes in Incoterms 2000 have been made in two areas: (i) the customs clearance under FAS and DEQ; and (ii) the loading and unloading obligations under FCA. But it should be stressed that the scope of Incoterms is limited to the contract of sale and not apply to the contracts of carriage, insurance and financing. Moreover, merchants wishing to use Incoterms 2000 should clearly specify that their contract is governed by 'Incoterms 2000'. It is particularly important to note that Incoterms are not dealt with a great number of problems, such as transfer of property rights, breaches of contract and exemptions from liability. Therefore, the contracting parties should clearly agree to the applicable law related their contract of sale, like the 1980 United Nations Convention on Contracts for the International Sale of Goods.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.20
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• pp.241-265
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• 2003

The purpose of this paper is to examine the customs clearance impediment and trade parties breaches of international sales contract by the impediment. Customs clearance impediment arises when (a)clearance is not permitted, (b) importation goods are confiscated, (c)clearance delay without expectation, and (d) additional excessive trade cost caused in the process of clearance. This kind of clearance impediment may cause the breach of international sales contract. And it depends on its contents of contract and causal sequence i.e. cause and effect respectively in determining who is liable for it. If one party exemptions by Article 79 CISG, next three elements must be proved. (a)The failure was due to an impediment beyond his control; (b)the impediment was reasonably unforeseeable at the time of the conclusion of the contract, and (c)the impediment was reasonably impossible to overcome. But the customs clearance impediment is not easy to prove these three elements, the party who is responsible the customs clearance may not be exemptions by Article 79 CISG. And, according to review, it is concluded that the buyer, rather than seller, is liable for the damage which is caused in the process of clearance. It is also confirmed that the seller is sometimes liable for depending on clauses of contracts i.e. quality conditions.

• Journal of Korea Trade
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• v.23 no.4
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• pp.80-102
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• 2019

Purpose - This paper aims to articulate relationship about factors influencing FTA utilization by dividing them into company's external and internal factors and performing investigation on the relationship between FTA utilization and export performance. Design/methodology - This study verified factors influencing FTA utilization by dividing them into company's external and internal factors and performing investigation on the relationship between FTA utilization and export performance. Empirical analysis was performed by setting internal and external factors required for FTA utilization as variables. To achieve this, research model was established based on previous study, hypothesis was deduced, and statistical program were used to test the hypothesis. This study performed empirical analysis using statistical program of SPSS 18.0 and AMOS 18.0 for the research model. Findings - Empirical analysis was performed regarding the effect of the FTA utilization on export performance and previous study defined export performance as the company's increased economy benefits through export and increase in new transactions. Analysis was also performed for factors affecting the FTA utilization by the company and through management and response of external factors and internal factors it was confirmed that the FTA utilization by the company led to increase in the company's export performance as a result. This study proposes a method to achieve export performance based on this. Originality/value - Companies seeking to utilize the FTA sign the Contract for the International Sale of goods and there are many conditions to meet in order to receive trade preferences during the transaction process. Existing trade order and order in the FTA have to be followed. Country of origin can be seen as key in the FTA. The Rule of Origin becomes the most important evaluation standard in applying preferential tariff in the FTA. Such regulations can be seen as external factors which cannot be controlled by the company. Internal factors are capabilities owned before that can be controlled by the company. The study sought to test the variables regarding factors centered on such capability. This study verified factors influencing FTA utilization by dividing them into company's external and internal factors and performing investigation on the relationship between FTA utilization and export performance.

• Journal of Korea Trade
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• v.27 no.3
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• pp.199-216
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• 2023

Purpose - This study aims to identify the internal capabilities that export companies need to possess in order to utilize FTAs and to propose ways to expand their export performance through them. To achieve this goal, the study analyzed the internal factors that affect FTA utilization from a resource-based perspective, such as Origin Management Competency, Information Acquisition Competency, contract Management Competency, and Commitment to Export, based on prior research on corporate capabilities in the field of management and FTA-related research. The study ultimately aims to confirm whether a company's FTA utilization contributes to its export performance through the management and response to its internal factors for FTA utilization. Design/methodology - To achieve the research objective, this study conducted a literature review related to FTA utilization and identified the internal factors of companies that affect FTA by classifying them into Origin Management Competency, Information Acquisition Competency, contract Management Competency, and Commitment to Export Based on this, a final research model was developed, hypotheses were set through a preliminary study survey, and conclusions were drawn by analyzing the data of 312 companies. Findings - The empirical analysis results indicate that Origin Management Competency and Contract Management Competency have a positive impact on FTA utilization, while Information Acquisition Competency and Commitment to Export do not have a statistically significant impact on FTA utilization. Based on these findings, this study suggests measures for efficient FTA utilization for companies that want to utilize FTAs. Additionally, FTA utilization has a positive impact on export performance. In other words, the extent to which companies utilize the signed agreements has a positive impact on their performance. Based on these results, this study identifies the characteristics of companies that want to utilize FTAs and proposes measures for future efficient FTA utilization. Originality/value - This study has confirmed that in order for companies to utilize FTAs, they must meet the requirements of the FTA. To this end, the study has concluded that it is important to manage and address internal factors such as Origin Management Competency, Information Acquisition Competency, contract Management Competency, and Commitment to Export to increase FTA utilization. Based on these results, it can be confirmed that it is essential for companies to have an understanding and management of the internal factors that satisfy the requirements of the FTA in order to utilize the FTA.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.13
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• pp.257-281
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• 2000

The world economy is becoming increasingly globalized. The globalization has resulted in far reaching agreements to deepen trade liberalization and enlarge its scope to cover new areas in addition to strengthening its supporting institutional base. Economic growth has developed international trade which has accelerated the development of international carriage of goods in 21st century. The international trade is basically founded on the contract of international sale of goods and backed up by the contract of international carriage of goods and the insurance on the goods carried. It is essential to incorporate each other sections for the efficient development of international trade. As a result of rapid expansion of international carriage of goods, rationalization of transport was required, which has brought about the International Multimodal Transport System through containerization. The approach to liability system will be a right way to solve the insurance problems for the development and enlargement of world trade volume. International multimodal transport system has affected international trade a lot, especially the field of insurance a grate deal. This paper is to analyze contents of liability system on Multimodal Transport with in the UN Convention on International Multimodal Transport of goods.

• East Asian Journal of Business Economics (EAJBE)
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• v.11 no.2
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• pp.39-57
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• 2023

Purpose - This paper is to examine the work of a third party in the process of import and export management. In other words, the purpose of this paper is investigate the status and functional role of a third party in relation to each terms of the trade contract. Research design, data, methodology - This study consists of 5 chapters through literature survey. It will examine the involvement of the third party through each terms. Chapter 1 introduction, Chapter 2 deals with trade contracts, Chapter 3 investigates the shipping terms, payment terms, and insurance terms, and Chapter 4 reviews with commercial arbitration. And in Chapter 5, it looks at the conclusion and implications. Results - The relevant party in the import and export management process may be a third party through outsourcing, not the principal. At this time, in fulfilling each condition of trade, it can be seen that the implementation of tasks through the participation of a third party with high expertise can more smoothly and productively implement the overall import and export management. Therefore, it can be seen that the implementation of the trade business in which the third party participated can be interpreted in terms of derivative effects and at the same time can be a way to improve the principal's competitiveness procedurally. Conclusions -Through this study, in the import and export management, the performance of the work through the agent makes the entire process more smooth and efficient. Outsourcing of roles using the expertise of a third party, a subcontractor rather than a principal, is desirable and important.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.5
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• pp.7-44
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• 1993

This study is focused on the review of buyer's remedy resulting from the breach of seller's duty in contracts for the international sale of goods focusing on UNCCIS, 1980 and the problems and suggestions of proper ideas for solving the problems. First problem on the buyer's remedy is related to the breach of seller's duty on del ivory of the contracted goods. When seller has failed to deliver the contracted goods to buyer within the stipulated periods, buyer can treat the contract as avoided and claim damages from seller. By the way, since UNCCIS does not provide any stipulation on the time of buyer's avoidance of the contract, buyer can delay the time of avoidance when the price of contracted goods is rising rapidly and enlarge the amount of damages, Since this stipulation is clearly unreasonable, proper solutions are required for UNCCIS. Second problem is related to the breach of seller's duty on deliver of goods which are of the quantity, quality and description required by the contract and which are contained or packged in the manner required by the contract. When seller has failed to deliver goods which are confirm with the contract, buyer may have one of the two rights of damages and the price reduction according to UNCCIS provided that he does not choose the avoidance. But, since the character and position of the price reduction as a buyer's remedy are not sufficient solutions, more detailed review on this point is required. Third, Seller's duty to provide documents is very important for overseas trade, but UNCCIS does not provide any specific buyer's remedy in comparison with the other remedy and also does not provide any stipulation on the Letter of Credit which have important roles for a device of setting payment in overseas trade. This means that trade customs and practice have not sufficiently reflected in UNCCIS. As the problems mentioned above may decrease the evaluation of buyer's remedy in UNCCIS and, furthermore, that of UNCCIS itself, proper solutions on these points are needed.

• Journal of Korea Trade
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• v.25 no.7
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• pp.108-121
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• 2021

Purpose - This paper studies whether the CISG is applicable to the arbitration agreement when the validity of the arbitration agreement becomes an issue. To make the study clear, it limits the cases assuming that the governing law of the main contract is the CISG and the arbitration agreement is inserted in the main contract as a clause. Also, this paper discusses only substantive and formal validity of the arbitration agreement because the CISG does not cover the questions of the parties' capacity and arbitrability of the dispute. Design/methodology - This paper is based on scholarly writings and cases focusing on the principle of party autonomy, formation of contract and the doctrine of separability to discuss characteristic of arbitration agreement. In analyzing the cases, it concentrates on the facts and reasonings that show how the relative regulations and rules are interpreted and applied. Findings - The findings of this paper are; regarding substantive validity of arbitration agreement, the courts and arbitral tribunals consider general principles of law for the contract and the governing law for the main contract. In relation to formal validity of arbitration agreement, the law at the seat of arbitration or the law of the enforcing country are considered as the governing law in preference to the CISG because of the recognition and enforcement issues. Originality/value - This paper attempts to find the correlation between the CISG and the arbitration agreement. It studies scholars' writing and cases which have meaningful implication on this issue. By doing so, it can provide contracting parties and practitioners with some practical guidelines about the governing law for the arbitration agreement. Furthermore, it can help them to reduce unpredictability that they may confront regarding this issue in the future.

• Journal of Korea Trade
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• v.27 no.4
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• pp.1-18
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• 2023

Purpose - The purpose of this paper is to study how flexibility and mutuality in determining trade terms impact logistics efficiency in the context of relational theory. Additionally, the effect of relational contracts on logistical efficiency relative to the value of the goods being traded is investigated. Design/methodology - According to the relational contract theory, we developed 17 factors utilizing a 7-point Likert scale to measure variables related to flexibility, mutuality, logistics efficiency, and the added value of goods. The survey occurred over four months, and was distributed directly, and via email, phone, and online Google surveys. A total of 403 surveys were collected out of 1,800 distributed, and 380 were analyzed. The principal respondents were import/export companies and members of the Korea International Trade Association and the Korea Small and Medium Business Export-Import Association. The collected data were analyzed using frequency analysis, exploratory factor analysis, and correlation analysis using SPSS ver. 26.0 statistical software, and hypothesis test results were derived using Process Macro ver. 3.5. Findings - This study provides evidence that negotiation flexibility for trade terms affects the efficiency of the logistics process, and the mutuality of such arrangements is shown to be associated with the flexibility and efficiency of logistics processes. Additionally, it has been established that companies whose trade goods possess a low degree of added value may experience increased efficiency in logistics operations if they agree to trade terms that are both flexible and mutually beneficial with their counterparts. Originality/value - This study suggests that in an environment of rapidly shifting global logistics and unpredictable related costs, trade companies may be able to improve logistics efficiency by establishing flexible, mutually beneficial trade terms when entering into contracts. Furthermore, it is suggested that companies dealing in low-value-added products may improve the logistical performance of approaching trade from a perspective of relational contracts.