Question 1

What cases are suitable for arbitration?

Accepted Answer

The arbitration system is not based on adjudication procedures, but rather is carried out through decisions made by arbitrators who are experts in each field.Therefore, arbitration is a field where disputes are complex and specialized (e.g. construction, finance, joint venture cases, etc.)Areas where rapid resolution has a key impact on business (IT, intellectual property rights, labor-management issues, etc.)It is suitable for international investment and international transactions (trade, maritime, overseas investment, etc.) involving foreigners.

Question 2

A legal problem arose with a business partner. Do I really have to file a lawsuit?

Accepted Answer

There is an 'arbitration' system that can resolve disputes between parties without going to trial.In principle, arbitration can be decided by agreement of the parties, but there are exceptional cases where arbitration must be used.Arbitration decisions are made by arbitrators who are experts in each field, and unlike traditional litigation, arbitration is conducted as a single trial, saving significant time and cost.Additionally, once a third-party arbitrator's decision is made, the parties are legally bound to follow it, and it has the same effect as a court's final decision.In the case of Korea, Article 32 of the Civil Act (Establishment and Permission of Non-Profit Corporations) and Ministry of Trade, Industry and Energy Establishment Permit No. 142 are issued for the purpose of establishing order in commercial transactions and promoting public convenience by resolving or preventing disputes arising from domestic and international commercial transactions. The Korean Commercial Arbitration Board (KCAB), established pursuant to (March 21, 1970), is in charge of arbitration.

Question 3

Is it necessary to hire a lawyer for the arbitration process?

Accepted Answer

In principle, arbitration proceedings can be conducted directly without a litigation representative.However, because arbitration rulings are very important, it will naturally be helpful to hire a lawyer familiar with Korean law.Arbitration procedures are fast and complex to resolve disputes quickly.Additionally, because an arbitration award has the same effect as a “final” court decision, there is no appeal process like in a trial, even if there is an objection. That is, it is final and binding.(However, if there is an objection to the arbitration award, the objection may be raised through a separate lawsuit.)Therefore, in order to achieve the purpose of speedy resolution of disputes using arbitration procedures and obtain the desired results of the arbitration award, assistance from a lawyer who is a legal expert is essential from the arbitration stage.

Korean Law Guide- Arbitration- Basic

Korean Law Guide Recommended Guide