Kim & Chang successfully represented a Korean chemical fiber manufacturer (“Company A”) in an International Chamber of Commerce (“ICC”) arbitration arising from a long-term sales contract.

Company A entered into a long-term purchase agreement with an overseas raw material supplier (“Company B”). However, when Company A failed to meet the minimum purchase requirements, Company B initiated arbitration, seeking compensation for the shortfall. Company A claimed exemption from its purchasing obligations and a reduction based on the force majeure and performance exemption clauses due to the adverse market conditions caused by the COVID-19 pandemic.

Our firm closely examined the rapidly changing international market conditions and the factual circumstances surrounding the supply disruptions. By considering complex legal issues, including Texas law and Korean fair trade law, we established a comprehensive strategy through the active participation of industry and damage assessment experts, which ultimately led to the successful resolution of the dispute.

This case is particularly significant as it not only reduced the costs associated with dispute resolution but also resulted in a successful settlement.