What is arbitration?
Arbitration is a dispute resolution process based on Parties' consensual agreement to resolve their disputes through an arbitral tribunal,
composed of one or three independent arbitrators appointed by or on behalf of the Parties.
An arbitration is conducted in accordance with the clause within the Parties' arbitration agreement, as part of a provision within either a commercial contract or investment-State treaty.
You can find our model clause here.
Arbitration is known for its procedural flexibility, which allows Parties to engage in an efficient, confidential and fair process leading to a final, binding and enforceable award.
Arbitral awards are enforceable and binding in over 150 countries around the world due to the application of the New York Convention on the Recognition and
Enforcement of Foreign Arbitral Awards (the New York Convention).
KCAB Arbitration Procedure
(1) Commencing the Arbitration
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Request for arbitration :
The Claimant files a Request for arbitration, paying a fixed filing fee. The Secretariat will notify the Respondent, who must file an Answer within 30 days of receiving the Request.
The Secretariat will then provide an estimation of the arbitral expenses, inclusive of both administrator and arbitrator fees, which the Parties shall pay in equal shares.
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Application for emergency interim relief :
Concurrently or following the submission of the Request, a party may apply for Emergency Measures.
The Secretariat shall appoint a sole, impartial Emergency Arbitrator whom may order Emergency Measures if deemed appropriate.
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Filing counter-claims : When submitting the Answer, the Respondent may also file a counter-claim.
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Multiple Contracts : Submission of claims arising from multiple contracts may be provided for within a single Request, subject to approval from the Secretariat.
(2) The Arbitral Tribunal
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Formation :
Depending on the Parties’ intentions, the amount in dispute, and the complexity of the dispute, either a sole arbitrator or three arbitrators will form the Arbitral Tribunal.
In the event of a sole arbitrator, the Parties shall jointly nominate an arbitrator.
In the event of three arbitrators, the Claimant and Respondent will each nominate an arbitrator, in addition to jointly nominating the third arbitrator,
who will act as Chair of the tribunal. If the Parties are unable to jointly appoint the sole or third arbitrator, the Secretariat will nominate.
(3) Arbitral Proceedings
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Procedural Timetable :
The Arbitral Tribunal will hold a preliminary conference to discuss the arbitration proceedings, establishing a provisional timetable with the Parties.
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Joinder of Additional Parties :
An Additional Party may be allowed to join, subject to agreement from all Parties, where the Additional Party is also a party to the same arbitral agreement.
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Seat of Arbitration : In the absence of an agreement by the Parties, the seat of arbitration will be Seoul, Korea.
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Applicable Law : In the absence of an agreement by the Parties, the Arbitral Tribunal shall apply the substantive rules of law which it deems appropriate.
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Hearings : The Arbitral Tribunal will direct Parties to appear at the hearing(s).
(3) Arbitral Proceedings
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Procedural Timetable :
The Arbitral Tribunal will hold a preliminary conference to discuss the arbitration proceedings, establishing a provisional timetable with the Parties.
-
Joinder of Additional Parties :
An Additional Party may be allowed to join, subject to agreement from all Parties, where the Additional Party is also a party to the same arbitral agreement.
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Seat of Arbitration : In the absence of an agreement by the Parties, the seat of arbitration will be Seoul, Korea.
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Applicable Law : In the absence of an agreement by the Parties, the Arbitral Tribunal shall apply the substantive rules of law which it deems appropriate.
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Hearings : The Arbitral Tribunal will direct Parties to appear at the hearing(s).
(4) The Award
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Final Award rendered :
On completion of the hearing(s), the Arbitral Tribunal will render the Arbitral Award, which shall be binding upon the Parties and put into effect without delay.
KCAB Arbitration Procedure
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Request for arbitration by Claimant and Respondent files an Answer
(1) Commencing the Arbitration
-
Request for arbitration :
The Claimant files a Request for arbitration, paying a fixed filing fee. The Secretariat will notify the Respondent, who must file an Answer within 30 days of receiving the Request.
The Secretariat will then provide an estimation of the arbitral expenses, inclusive of both administrator and arbitrator fees, which the Parties shall pay in equal shares.
-
Application for emergency interim relief :
Concurrently or following the submission of the Request, a party may apply for Emergency Measures.
The Secretariat shall appoint a sole, impartial Emergency Arbitrator whom may order Emergency Measures if deemed appropriate.
-
Filing counter-claims : When submitting the Answer, the Respondent may also file a counter-claim.
-
Multiple Contracts : Submission of claims arising from multiple contracts may be provided for within a single Request, subject to approval from the Secretariat.
-
Formation of Tribunal (1-3 arbitrators)
(2) The Arbitral Tribunal
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Formation :
Depending on the Parties’ intentions, the amount in dispute, and the complexity of the dispute, either a sole arbitrator or three arbitrators will form the Arbitral Tribunal.
In the event of a sole arbitrator, the Parties shall jointly nominate an arbitrator.
In the event of three arbitrators, the Claimant and Respondent will each nominate an arbitrator, in addition to jointly nominating the third arbitrator,
who will act as Chair of the tribunal. If the Parties are unable to jointly appoint the sole or third arbitrator, the Secretariat will nominate.
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Tribunal establishes:
- timetable
- procedural rules
Tribunal may grant:
- interim measures
- partial awards
(3) Arbitral Proceedings
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Procedural Timetable :
The Arbitral Tribunal will hold a preliminary conference to discuss the arbitration proceedings, establishing a provisional timetable with the Parties.
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Joinder of Additional Parties :
An Additional Party may be allowed to join, subject to agreement from all Parties, where the Additional Party is also a party to the same arbitral agreement.
-
Seat of Arbitration : In the absence of an agreement by the Parties, the seat of arbitration will be Seoul, Korea.
-
Applicable Law : In the absence of an agreement by the Parties, the Arbitral Tribunal shall apply the substantive rules of law which it deems appropriate.
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Hearings : The Arbitral Tribunal will direct Parties to appear at the hearing(s).
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Proceedings and hearings take place
(3) Arbitral Proceedings
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Procedural Timetable :
The Arbitral Tribunal will hold a preliminary conference to discuss the arbitration proceedings, establishing a provisional timetable with the Parties.
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Joinder of Additional Parties :
An Additional Party may be allowed to join, subject to agreement from all Parties, where the Additional Party is also a party to the same arbitral agreement.
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Seat of Arbitration : In the absence of an agreement by the Parties, the seat of arbitration will be Seoul, Korea.
-
Applicable Law : In the absence of an agreement by the Parties, the Arbitral Tribunal shall apply the substantive rules of law which it deems appropriate.
-
Hearings : The Arbitral Tribunal will direct Parties to appear at the hearing(s).
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Final Award rendered
(4) The Award
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Final Award rendered :
On completion of the hearing(s), the Arbitral Tribunal will render the Arbitral Award, which shall be binding upon the Parties and put into effect without delay.
