The purpose and significance of this research is a study on policy measures to vitalize the international arbitration and mediation system. It aims to present concrete and practical policy alternatives by reflecting the reality of the industry and the latest trends, and to review the achievements and limitations of the domestic commercial arbitration system and industry development from a legal policy perspective. This research examines the problem of lack of social awareness of international arbitration and mediation systems in Korean society.

In special, this research project try to promotes empirical research on international arbitration and mediation systems. The survey is to study the necessity and expected effects of international arbitration and mediation systems through the identification of the actual situation and the analysis of the reality of the problem.

The comprehensive expert survey by KICJ and KIMC on the legal institutions and practice of international arbitration and mediation in South Korea has targeted 81 Korean experts, including corporate executives or employees in the legal team, in-house counsels, law firm lawyers, government officials and law professors.

The survey result shows that about 70% of respondent say international arbitration has not invigorated in Korea. Respondents choose ‘lack of social awareness’ as top cause, followed by ‘reliability of arbitrators’. Respondent point out that ‘raising social awareness’ and ‘increase in reliability’ should be considered to develop an international arbitration system. However, 40% and 42% of the respondents answer that they do not know about the New York Convention on Recognition and Enforcement of Foreign Arbitral Awards and the Arbitration Industry Promotion Act.

In a 3-member tribunal, party appointed arbitrators may have the same nationality as a party. 56% agree that choosing arbitrator of the same nationality is sensible because at least one member of the tribunal will have a good understanding of the national practice and culture where the party from. They think when vetting a candidate as an arbitrator, wheter the candidate has biligual ability is not important. 73% of respondents say that it is beeded to be a lawyer as an arbitrator.

According to the results, specific legal or professional expertise are required for arbitrator, so the he/she can be appointed as the arbitrator best suited to the case. 53% of respondents are interested in becoming an arbitrator in ADR. As for the important factors in carrying out an arbitration proceeding, respondents choose enforce-ability, impartiality, cost and speediness, and as for the important factors in the choice of arbitral seat, enforce-ability applicable law, existence of domestic law and procedural validity of the court in the seat of arbitration. According to the survey, preferred factors in selecting the arbitral institution are efficiency, professionality of members, cost and reputation, and preferred factors in appointing arbitrators are expertise, career, cost and command of language.

The survey result on the international arbitration shows that to promote international arbitration, it is necessary to promote social awareness, and the most pivotal element is enforce-ability for the conduct of international arbitration. The choice of arbitral seat and appointment of diverse arbitrators are key issues for users of international arbitration. The factors should be considered when selecting the arbitral institution or appointing arbitrators are speciality and expertise in specific cases.

72% of respondents have experienced international commercial mediation and arbitration cases as a person involved. 44% of them directly and indirectly handled international commercial dispute cases below 3. They also choose such dispute resolution mostly by the other party’s request and contractual obligation. However, 91% of the respondents think mediation is not active in Korea regarding the resolution of international commercial dispute. The reason, accrding to the survey, are mostly lack of social awareness and internal limitations of mediation system. So raising social awareness and internal limitations of the mediation system are the factors necessary to activate international commercial mediation in Korea. 

UN Convention on International Settlement Agreements by Mediation signed in 2019 and entered into force in September 2020, but 32% of the respondents do not know about the Convention (Singapore Convention). 56% of the respondents think domestic implementation legislating is necessary to be a party to the 2019 Convention on Mediation. 43% of them think the Singapore Conventionshould be included in the domestic implementation law. 65% of them think legislation such as the Mediation Industry Promotion Act, like the Arbitration Industry Promotion Act, is necessary to activate international commercial mediation system. 68% of the respondents agree that the use of international commercial mediation should be included in the dispute resolution clause when signing a contract in the future.

72% of them think co-mediators based on the nationality of each of the parties involved in the dispute are needed, and 58% of them think it is possible to designate a single mediator despite the differences in nationality of each of the parties. 65% of the respondents are willing to be a mediator in the future. 38% of them think there are not so much incentive there will be to choose international commercial mediation, from a lawyer’s point of view, compared to other dispute resolution procedures such as arbitration and litigation. The survey result shows that efficiency and enforce-ability are the important factors when carrying out international mediation cases.

 According to the survey on international mediation, experts recognize the usefulness of international commercial mediation, and many of them want to resolve their international commercial disputes by means of mediation. However, even experts still seem to lack an accurate understanding of the effectiveness of the mediation, as well as the system including the 2019 Convention on Mediation. It is necessary to introduce a quick implementation law or ratification of the Singapore Convention.