1.

Establishment of KCAB International Arbitration Court

The most significant development in the Amended Rules is the establishment of the KCAB International Arbitration Court (the “Court”), an independent decision making body comprised of external experts. The Amended Rules aim to enhance the independence and efficiency of the arbitration procedure by granting the Court authority over major procedural matters, such as the appointment and challenge of arbitrators, the consolidation of proceedings and the determination of arbitration costs. In addition, the transparency of the KCAB international arbitration procedure is expected to improve, as the Court will now decide on a considerable number of matters that the Secretariat was previously mandated to determine under the previous KCAB International Arbitration Rules (the “2016 Rules”).

The major matters over which the Court has the authority to decide are as follows:
 

(1)

Matters Related to Arbitral Tribunal
 

(2)

Review of Draft Awards

The Secretary-General may request the Court to review the draft award, taking into account all relevant circumstances, including the complexity of the dispute and the presence of any dissenting opinions.
 

(3)

Other Matters

Under the Amended Rules, the Court is granted the authority to make decisions regarding applications for consolidation of arbitrations, arbitration costs, the application of expedited or fast track procedures, the joinder of an additional party before the constitution of the arbitral tribunal and a prima facie determination of the existence of an arbitration agreement.
 

2.

Revisions to Expedited Procedure and Fast Track Procedure

To enhance the speed and efficiency of the arbitration procedure, the Amended Rules have refined the existing expedited procedure provisions and introduced a new fast track procedure.

Under the 2016 Rules, the expedited procedure applied to cases where the amount in dispute was below KRW 500 million. Under the Amended Rules, the fast-track procedure applies, in principle, to cases where the amount in dispute is KRW 500 million or less. Meanwhile, the expedited procedure applies to cases where the amount in dispute is above KRW 500 million and up to KRW 4 billion.

In cases subject to the fast-track or expedited procedure, a sole arbitrator is appointed in principle. The arbitral award must be rendered within three months from the constitution of the arbitral tribunal for the fast track procedure and within six months for the expedited procedure. The arbitral tribunal may conduct such cases solely based on written submissions and may limit requests for document production or the submission of evidence. When an oral hearing is held, it is generally limited to one hearing, absent exceptional circumstances. Furthermore, in order to promote speed and flexibility, the Amended Rules mandate that hearings be conducted remotely as a general principle.
 

3.

Improved Procedures for Joinder and Consolidation

With respect to joinder of additional parties, the Amended Rules have expanded the scope of application. In particular, (i) written consent from the additional party is no longer required in cases where the additional party is prima facie a party to the same arbitration agreement as the existing parties, and (ii) the “additional party” itself may also apply for joinder. The Amended Rules have also introduced provisions regarding the constitution of the arbitral tribunal upon the joinder of a party, the additional party’s right to object to the constitution, the date of commencement of the arbitration in respect of the additional party and the opportunities for the parties to submit claims and defenses.

Regarding the consolidation of arbitrations, the Amended Rules permit consolidation where: (i) all parties agree to the consolidation, (ii) all claims are based on the same arbitration agreement, or (iii) the arbitration agreements on which the claims are based are not identical but are compatible and the disputes being submitted to arbitration arise out of or in connection with the same legal relationship.

The Amended Rules also introduce provisions on concurrent proceedings. Where multiple arbitrations share the same tribunal and common issues of law or fact, the tribunal is authorized, upon a party’s application, (i) to conduct the related arbitration proceedings simultaneously or sequentially, or (ii) to suspend one arbitration pending the resolution of the other.
 

4.

Introduction of Early Determination Procedure

To prevent unnecessary procedures and enable swift resolution of disputes, the Amended Rules introduce an early determination mechanism. Under this provision, a party to an arbitration may apply for an early determination regarding the opposing party’s claim or defense if it is evident that the claim or defense is manifestly unsustainable or without legal merit. The arbitral tribunal must make a decision as soon as practicable after hearing the parties’ opinions.
 

5.

Other Key Amendments

To further reflect recent trends in international arbitration practice, the Amended Rules have newly introduced provisions that: (i) permit the submission and service of the Request for Arbitration by electronic means, (ii) require parties to disclose any third party funding arrangements, (iii) encourage the use of technology such as electronic communications in conducting of the proceedings, (iv) encourage the parties and the arbitral tribunal to consult on the use of information technology, including artificial intelligence, (v) encourage the resolution of disputes through mediation, and (vi) grant the arbitral tribunal the authority to order the provision of security for costs.