April 24, 2024

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[THE INVESTOR] Korean firms are showing more aggressiveness in resolving their international disputes with rivals, with a record number of arbitration cases being filed in 2016.

According to the Paris-based International Court of Arbitration of the International Chamber of Commerce, a total of 82 Korean firms -- the highest-ever figure -- sought arbitration last year. 

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The ICC said a record 966 cases, involving 3,099 parties from 137 countries, were filed in total and Asia showed the highest growth of 22 percent largely due to a surge by Korean firms.

“In the past, Korea firms used to avoid disputes with their global rivals but now they are more willing to claim their rights,” Kim Kab-yoo, lawyer and member of the ICC court, said in a conference held in Seoul last year, calling the legal battle between Samsung and Apple a turning point for the renewed awareness about arbitration.

In separate ICC data, Korean firms filed a total of 315 arbitration suits between 2003 and 2013, which compares to China’s 314, Japan’s 221, Singapore’s 184 and Hong Kong’s 165.

Samsung Electronics, the nation’s largest company, settled several patent cases with global rivals such as Microsoft and Nokia through the ICC court last year. On Dec. 22, the Korean tech giant filed a fresh US$492 million arbitration against Sharp and two other Japanese suppliers for suddenly halting supplies of liquid-crystal display panels for its TVs.

Its crosstown rival LG Electronics also filed a suit with the ICC against Qualcomm’s hefty royalty fees last year. The two firms later settled the case.

Some global tech firms such as SAP are also seeking arbitration in their dispute with Korean partners.

Businesses can save time and costs through the ICC arbitration compared to lawsuits. The settlement is usually made in less than two years. Among other things, heightened security, which is crucial for global firms, is guaranteed as the involving parties are not obliged to disclose the case.

“It is a flexible, efficient and totally neutral procedure,” Dawn Chardonnal, an ICC spokesperson, told The Investor about the benefits of the ICC arbitration.

“The awards are binding, final and susceptible to enforcement anywhere in the world.”

He declined to comment on the pending cases involving Samsung and Sharp.

Along with tech firms, a growing number of builders and entertainment agencies here have been involved in international commercial disputes more recently and turning to the ICC for arbitration, sources said.

By Lee Ji-yoon (jylee@heraldcorp.com)