Lex Mundi Global Arbitration Institutions Guide |
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Korea |
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(Asia Pacific)
Firm
Lee & Ko
Contributors Updated 05 Sep 2018 |
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| Name of Arbitral Institution; with abbreviation, if any. | Korean Commercial Arbitration Board ("KCAB") |
| Where is the seat of the Arbitral Institution? | The KCAB has offices in Seoul and Busan |
| Is there an umbrella organization for the Arbitral Institution? | No. |
| How is the Arbitral Institution structured? | The KCAB Secretariat administers the cases. The KCAB consults with an "International Arbitration Committee" of 18 internationally renowned arbitrators when making decisions on the appointment, challenge, removal and replacement of arbitrators. |
| Is there a compulsory list of arbitrators that parties are required to choose from? | The KCAB maintains a Panel of International Arbitrators. Parties may nominate arbitrators who are not on the list. However, when the KCAB makes an appointment, the normal practice is to appoint an arbitrator on the Panel. |
| Can the place of arbitration freely be chosen by the parties? Is there a default place of arbitration? | Article 24 for the KCAB International Rules confirms that the parties are free to agree on the place of arbitration. In the absence of an agreement, the default place of arbitration is Seoul, unless the arbitral tribunal determines that another place is more appropriate. |
| What is the amount of the registration fee? | KRW 1,000,000 |
| What is the average cost of an arbitration in the following cases? 1 arbitrator, amount in dispute = $1 million | Approximately USD 24,000 based on current exchange rates in August 2018 (this amount includes the arbitrator's fees and the KCAB administrative fee) |
| What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $10 million | Approximately USD 170,000 based on current exchange rates in August 2018 (this amount includes the fees for three arbitrators and the KCAB administrative fee) |
| What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $100 million | Approximately USD 400,000 based on current exchange rates in August 2018 (this amount includes the fees for three arbitrators and the KCAB administrative fee) |
| Who pays advances on costs? What happens in the event of default? | The parties are required to pay in equal shares unless the KCAB Secretariat sets separate advances. If the Respondent fails to pay, the KCAB will suspend or terminate the proceedings unless the Claimant pays the Respondent's share. Article 51(6) of the KCAB International Rules provides that when one party pays another party's share, that party may request the arbitral tribunal to order the defaulting party to pay through an interim, interlocutory, or partial award. |
| Does the Arbitral Institution have formalistic procedures (e.g. terms of reference) that must be complied with? If so, which ones? | There are no terms of reference, but Article 18 of the KCAB International Rules requires that the arbitral tribunal must establish a procedural timetable for the case after the tribunal has been constituted. |
| Which languages can be used for communication with the Arbitral Institution? | English or Korean. |
| Who is the main point of contact for the parties within the Arbitral Institution? | The KCAB Secretariat will appoint a case administrator to each case. |
| Are there restrictions on the language that the arbitration may be conducted in? | No. |
| Who appoints substitute arbitrators? | The KCAB Secretariat, in consultation with the International Arbitration Committee |
| Are there specific regulations for multi-party arbitrations or joinders to the proceedings? | Yes. Article 21 of the KCAB International Rules states the rule for joinder. Article 23 of the KCAB International Rules states the rule for consolidation. |
| Are oral hearings compulsory? | Article 16(3) of the KCAB International Rules provides that oral hearings are compulsory unless the parties expressly agree otherwise. |
| What are common evidence-taking practices? | Witness testimony is usually introduced through witness statements, rather than by direct testimony at the hearing. Witness statements and expert reports are usually, but not always, submitted with the memorials. |
| What is the average duration of arbitration proceedings? | Approximately 9 months for cases with a sole arbitrator. Approximately 12-15 months for cases with tribunal of three arbitrators. |
| What is the timeframe for rendering the award? | Article 38 of the KCAB International Rules requires that the tribunal make its award within 45 days of the last submission or the closure of the proceedings, whichever is later. |
| Are extensions to time limits permissible? | Yes. |
| Can the arbitral tribunal impose interim measures? Is there a competing competency of the ordinary courts with regard to interim measures? | Yes, the arbitral tribunal may impose interim measures. Korea has adopted many of the provisions on interim measures from the 2006 update to the UNCITRAL Model Law. |
| Do the institutional rules provide for an emergency arbitrator? | Yes. |
| Are there any specific regulations for expedited proceedings? If so, is there a deadline for rendering such an award? | Yes. These provisions appear in Articles 43-49 of the KCAB International Rules. The threshold for expedited cases is quite low (500,000,000 KRW) unless the parties agree otherwise. The deadline for the award is 6 months after the constitution of the arbitral tribunal. |
| Are arbitral awards submitted for scrutiny? If so, to whom? | Draft awards are subjected to minimal scrutiny. The KCAB case administrator may review the draft award to point out possible inconsistencies, or to check calculations. |
| Do costs necessarily follow the event? | No. The arbitral tribunal has broad discretion to award costs under Article 53 and 54 of the KCAB International Rules, and there is no formal principle in the rules that costs should follow the event. |
| Can an arbitral award be annulled in your jurisdiction? If yes, do the reasons for annulment in principle correspond to the reasons for denial of enforcement according to the New York Convention? | Yes. |
| Link to institutional rules | |
| Link to model clause | http://www.kcab.or.kr/jsp/kcab_eng/arbitration/arbi_321_ex.jsp
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Lex Mundi Global Arbitration Institutions Guide
Korean Commercial Arbitration Board ("KCAB")
The KCAB has offices in Seoul and Busan
No.
The KCAB Secretariat administers the cases. The KCAB consults with an "International Arbitration Committee" of 18 internationally renowned arbitrators when making decisions on the appointment, challenge, removal and replacement of arbitrators.
The KCAB maintains a Panel of International Arbitrators. Parties may nominate arbitrators who are not on the list. However, when the KCAB makes an appointment, the normal practice is to appoint an arbitrator on the Panel.
Article 24 for the KCAB International Rules confirms that the parties are free to agree on the place of arbitration. In the absence of an agreement, the default place of arbitration is Seoul, unless the arbitral tribunal determines that another place is more appropriate.
KRW 1,000,000
Approximately USD 24,000 based on current exchange rates in August 2018 (this amount includes the arbitrator's fees and the KCAB administrative fee)
Approximately USD 170,000 based on current exchange rates in August 2018 (this amount includes the fees for three arbitrators and the KCAB administrative fee)
Approximately USD 400,000 based on current exchange rates in August 2018 (this amount includes the fees for three arbitrators and the KCAB administrative fee)
The parties are required to pay in equal shares unless the KCAB Secretariat sets separate advances. If the Respondent fails to pay, the KCAB will suspend or terminate the proceedings unless the Claimant pays the Respondent's share. Article 51(6) of the KCAB International Rules provides that when one party pays another party's share, that party may request the arbitral tribunal to order the defaulting party to pay through an interim, interlocutory, or partial award.
There are no terms of reference, but Article 18 of the KCAB International Rules requires that the arbitral tribunal must establish a procedural timetable for the case after the tribunal has been constituted.
English or Korean.
The KCAB Secretariat will appoint a case administrator to each case.
No.
The KCAB Secretariat, in consultation with the International Arbitration Committee
Yes. Article 21 of the KCAB International Rules states the rule for joinder. Article 23 of the KCAB International Rules states the rule for consolidation.
Article 16(3) of the KCAB International Rules provides that oral hearings are compulsory unless the parties expressly agree otherwise.
Witness testimony is usually introduced through witness statements, rather than by direct testimony at the hearing. Witness statements and expert reports are usually, but not always, submitted with the memorials.
Approximately 9 months for cases with a sole arbitrator. Approximately 12-15 months for cases with tribunal of three arbitrators.
Article 38 of the KCAB International Rules requires that the tribunal make its award within 45 days of the last submission or the closure of the proceedings, whichever is later.
Yes.
Yes, the arbitral tribunal may impose interim measures. Korea has adopted many of the provisions on interim measures from the 2006 update to the UNCITRAL Model Law.
Yes.
Yes. These provisions appear in Articles 43-49 of the KCAB International Rules. The threshold for expedited cases is quite low (500,000,000 KRW) unless the parties agree otherwise. The deadline for the award is 6 months after the constitution of the arbitral tribunal.
Draft awards are subjected to minimal scrutiny. The KCAB case administrator may review the draft award to point out possible inconsistencies, or to check calculations.
No. The arbitral tribunal has broad discretion to award costs under Article 53 and 54 of the KCAB International Rules, and there is no formal principle in the rules that costs should follow the event.
Yes.