Seoul IDRC Seoul International Dispute Resolution Center Project

Seoul IDRC Seoul International Dispute Resolution Center Project Report 2013. 2. Byung-Joo Lee Vice President, Korean Bar Association Insolvency Committee Chair, IPBA Shin & Kim, Seoul

2 Seoul IDRC Purpose of this Project • To Develop Seoul as one of the Legal Hub for the International Arbitration in East Asia • A National Project - to provide the most IT advanced arbitration hearing facility in Seoul, and to host int’l arbitration cases between Korean companies and foreign companies as well as the cases between foreign companies around East Asian region • Korean Bar Association (KBA) co-worked with Korean Commercial Arbitration Board (“KCAB”), Seoul Metropolitan Government and Ministry of Justice • Seoul IDRC, has been incorporated as a “public interest foundation” (公益社團法人) on 20 September 2012.

3 서울국제중재센터(Seoul IDRC) Background - 1 • The Increasing Role of East Asia in the global economy • The center of Global economy is moving quickly from US and Europe to East Asia after the 2008 Lehman Crisis in U. S. A. • China is now the only economic engine to maintain the collapse of world economy • Japan is still one of the strong economic power house even with some dipression • Korea is more strongly moving toward economic frontier after the IMF crisis in late 1990 s, with powerful industries of electronics, cell phone, shipbuilding and automobiles.

4 서울국제중재센터(Seoul IDRC) Background - 2 • Internationalization of dispute resolution – Int’l Arbitration • Traditional way of multi-national dispute resolution - Court Litigation before one party’s Domestic Court determined the jurisdiction by the conflict of laws (涉外私法). • Globalization of Economic Activities – Increasing Trend of “Neutral Int’l Arbitration” instead of court litigation to which impartiality of the venue is always under suspicion. • More companies are in favor of neutral arbitration process in neutral arbitral seat, by neutral arbitrators.

5 서울국제중재센터(Seoul IDRC) Background - 4 • Increase of International Arbitration in East Asia Region • Importance of East Asia in Int’l arbitration market is also increasing. • Int’l arbitration cases in ICC (Paris) and AAA/ICDR (NY) : 500 -700 per year • CIETAC (China) and HKIAC : also handling 400 -600 int’l arbitration cases per year • KCAB (Seoul) : 80 -100 int’l cases per year • Just in the number of int’l cases, East Asia is already one of the center in Int’l Arbitration

6 서울국제중재센터(Seoul IDRC) Background - 5 • Korean Legal Society : Opening Market vs. Taking Initiative • Korean Crisis : Opening Legal Market from 2011 -2012 to EU and U. S. Intrusion of EU and U. S. Law firms targeting Korean Legal market • Korean Initiative: - Int’l activity : KBA’s active bar diplomacy with JFBA, ACLA, ABA, IBA, LSEW, etc - Int’l Conferences : Law Asia (2011), IPBA (2013) - Ethnic Int’l network between Domestic Korean lawyers and Foreign Korean lawyers – IAKL (International Association of Korean Lawyers) - Among 12, 000 Korean Lawyers, U. S. lawyers license holders are approaching 2, 000

7 서울국제중재센터(Seoul IDRC) Background - 6 • Booming of Arbitration Facilities in Asia region • Establishing Arbitration facilities in Asia/coming of Western Arbitration Institutes in Asia • Maxwell Chambers in Singapore (2011) : New business model of neutral arbitration hearing facility for the multiple international arbitration institutions (AAA/ICDR, ICC, LCIA, etc) – successfully making Singapore as a new hub for int’l arbitration hearing in Asia • HKIAC – extended its hearing facility two times wider than before (2012) • DIAC (Dubai International Arbitration Centre) opened/ KLRCA (Kuala Lumpur Regional Center for Arbitration) - Bigger facility project undergoing

8 서울국제중재센터(Seoul IDRC) Background - 7 • The meaning of Seoul IDRC – Booming up Int’l Arbitration in East Asia (1) • The efforts for the activating int’l arbitration in East Asia region was less active than the South East Asia and Middle East • CIATEC (China) has much int’l case (400 -600/year), but not so popular in the int’l market until now • JCAA (Japan Commercial Arbitration Association) is not so active in handling int’l arbitration cases.

9 서울국제중재센터(Seoul IDRC) Background - 8 • Korea – No. 1 Customer in Asian arbitration market • After IMF crisis in Korea, Korea was forced to open its economy to the world (almost became naked) • Korean companies is having more business transactions with foreign business players, and thus there are more arbitration clause in big transactions contracts. • Most Korean major law firms have and are enlarging its int’l arbitration departments in the recent decade.

10 서울국제중재센터(Seoul IDRC) Seoul IDRC Project - 1 • The Achievement and the schedule for opening (1) • KBA and KCAB with the cooperation of Seoul Metropolitan City and the Ministry of Justice, will make new international arbitration hearing facility in the Seoul Global center Building, and has already secured necessary funds and staffs from Central government, Seoul City, KBA, and KCAB • The new building construction will be finished in late February, the Seoul IDRC will have the interior work in March and the opening ceremony will be held April 17 th, just before the start of the IPBA 2013 Seoul Conference

11 서울국제중재센터(Seoul IDRC) Seoul IDRC Project - 2 • The Achievement and the schedule for opening (2) • Legal Entity : Incorporated ‘Public Interest foundation (公益社團法人) ’ under the supervision of the Ministry of Justice (法務部) • Identity : • No - Int’l Arbitration Institution like ICC/KCAB/JCAA • Yes – Int’l Arbitration Facility like Maxwell Chambers in Singapore

12 서울국제중재센터(Seoul IDRC) Inviting International Institutes • 5 International Arbitration Institutes are participating Seoul IDRC • LCIA (London Court of International Arbitration) • ICC (Paris) • AAA/ICDR (NY) • SIAC • HKIAC • ICSID (International Center for State Investment Dispute) – Contract for using Seoul IDRC facility in int’l State Investment Dispute (expected)

13 서울국제중재센터(Seoul IDRC) How to Use • International Arbitration Hearings held in Seoul : ICC, LCIA, SIAC, HKIAC, AAA/IDRC, KCAB, JCCA • ICC statistics : Seoul is the 3 rd frequent seat for the int’l arbitration in Asia (after Singapore, HK) • Seminar/Lecture/Conferences regarding International Arbitration

15 서울국제중재센터(Seoul IDRC) Economic Effect • International Hearings : 200 cases / 5 yrs • Economic Effect for cases : ▫ 2. 5 Million USD per cases ▫ 500 Million US Dollars for 5 yrs

16 서울국제중재센터(Seoul IDRC) Organization of Seoul IDRC • Chairman Young-Moo Shin • Executive Council Chair Hee-Taek Shin (Professor, SNU Law School)

17 서울국제중재센터(Seoul IDRC) Facility • 12 th Floor , Seoul Golbal Center Building (Downtown area, near Cheog-Gye river) • 510 square meter • Large Hearing Room (1), Medium Hearing Room (2), Preparation Room (2) • Most IT Advanced Hearing System designing

18 서울국제중재센터(Seoul IDRC) Location Surrounding Area 2 7 8 9 13 16 17 15 11 10 19 12 1 5 6 18 20 3 4 18 14 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 서울국제중재센터(Seoul IDRC) 12. 13. 14. 15. 16. 17. 18. 19. 20. 지하철 종각역 Kim & Chang Lee & Ko Shin & Kim Mc. Dermott Will & Emery Paul Hastings Cleary Gottlieb Government Complex USA Embassy Seoul City Hall Seoul Finance Center (SFC) Samsung Security HQ Namsan Tower City Bank Standard Chartered Bank Goldman Sachs Korea Westin Chosun Hotel Plaza Hotel Lotte Hotel

19 서울국제중재센터(Seoul IDRC) Hearing Rooms 1. 2. 3. 4. 5. Lobby Reception Hearing ▫ 3 a. Medium Hearing Room ▫ 3 b. Large Hearing Room 5 Preparation Room/ Office Area 2 1 Copy and Print 3 b 4 4 4 4 3 a 3 a

20 서울국제중재센터(Seoul IDRC) Space Design 1. 2. 3. 4. 5. Lobby Reception Hearing Rooms ▫ 3 a. Medium Hearing Room ▫ 3 b. Large Hearing Room Preparation Room/Office Copy Room

23 서울국제중재센터(Seoul IDRC) Conclusion • Seoul IDRC – A big Progress for the development of International Arbitration in East Asia • Cooperation between Arbitration Institutes and Arbitration Society in East Asia • Let us make East Asia a new center place of international arbitration • Through the cooperation between Korean lawyers and Japanese Lawyers • Opeing Ceremony for the Seoul IDRC will be held in the morning and afternoon of April 17 th (Wed), Just before the opening of IPBA Seoul Conference (April 17 th-20 th) • We Invite all our Japanese Friends to the opening of Seoul IDRC • (Thanks)