Arbitration versus National Venues
The Korea Times Business Focus
June 12, 2011
Financial institutions in Korea generally prefer court proceedings to resolve disputes in part because in Korea, parties must submit a denial after a complaint is filed or else a default judgment can be rendered in favor of the plaintiff.
When financial disputes are between parties from different jurisdictions, its gets more complicated: “Enforcing foreign court judgments in Korea or enforcing a Korean court judgment outside of Korea is generally difficult and time consuming. In comparison, enforcing an international arbitration award is much more straightforward due to the 1958 New York Convention on Recognition and Enforcement of Arbitral Awards.”