INTRODUCTION Details of Enactment and Amendment ● Enactment: This Act was enacted on March 16, 1966 as Act No. 1767, in order to allow a settlement of a dispute in private laws that is rapid, economic and befitting the actual circumstances of the transaction by allowing a settlement by the decision of an arbitrator under the agreement of the parties, rather than by the judgment procedure of a court. ● Amendment: This Act has arrived at its present form as the result of being wholly amended on December 31, 1999 and it positively received the internationally established standards and advanced legislative examples. Main Contents ● As a general rule this Act applies when the place of arbitration is within the Republic of Korea, and as an exception, it also applies when the place of arbitration is in a foreign country for cases of recognition and enforcement of a foreign arbitral award. ● Independence of arbitration shall be guaranteed by allowing court intervention only in regard to the matters provided in this Act, and when the assistance of a court is necessary, such as when the parties are unable to appoint the arbitrator(s), a competent court which is to perform is determined in concrete terms. ● As a general rule, an arbitration agreement shall be in writing, either in the form of a separate agreement or an arbitration clause of a contract, and if an action that is brought before a court despite the existence of an arbitration agreement shall be rejected unless there is a special circumstance, so that the clarity and effectiveness of an arbitration agreement may be ensured. ● Pursuant to the principle of the autonomy of the parties, number of, and procedure of appointing, arbitrators shall be determined by an agreement between the parties. In the absence of an agreement, the number of arbitrators shall be three persons, and the method of their appointment is determined in concrete terms. ● The arbitral proceedings and the place of arbitration are determined by an agreement between the parties, and, in the absence of an agreement, they may be determined by the arbitral tribunal, in consideration of the convenience of the parties, etc. ● Method of claiming arbitration, procedure of the hearings held by the arbitral tribunal and method of taking evidence are determined in concrete terms. ● An arbitral award shall state the reasons upon which it is based, the date of its preparation and the place of arbitration and be signed by all of the arbitrators. An arbitral award shall have the same effect as the final and conclusive judgment of a court. ● Recourse against an arbitral award is possible only when an action to set it aside is brought to a court within three months after the date on which the authenticated copy of the arbitral award is received. ● Recognition and enforcement of an arbitral award shall be confirmed by the judgment of a court, and a domestic arbitral award shall be recognized or enforced unless ground for setting it aside is present so that the final settlement of a dispute may be brought about through a timely enforcement of the arbitral award. ARBITRATION ACT Act No. 6465, Apr. 7, 2001 CHAPTER I GENERAL PROVISIONS ■ Article 1 (Purpose) The purpose of this Act is to ensure the proper, impartial and rapid settlement of disputes in private laws through arbitration. ■ Article 2 (Scope of Application) (1) The provisions of this Act shall apply only if the place of arbitration under Article 21 of this Act is in the Republic of Korea, however, that provisions of Articles 9 and 10 of this Act shall apply even in case the place of arbitration has not been determined or is not in the Republic of Korea and the provisions of Articles 37 and 39 of this Act shall apply even in case the place of arbitration is not in the Republic of Korea. (2) This Act shall not affect any other Act by virtue of which certain disputes may not be submitted to arbitration or may be submitted to arbitration only according to provisions other than those of this Act, nor those treaties which are valid in the Republic of Korea. ■ Article 3 (Definitions) The definitions of terms used in this Act shall be as follows: 1. The term "arbitration" means a procedure to settle any disputes in private laws, not by the judgment of a court, but by the award of an arbitrator or arbitrators, as agreed by the parties; 2. The term "arbitration agreement" means an agreement by the parties to submit to arbitration all or part of certain disputes which have arisen or which may arise between them in respect of certain legal relationships, whether contractual or not; and 3. The term "arbitral tribunal" means a sole arbitrator or a panel of arbitrators who conducts the arbitral proceedings and makes an arbitral award. ■ Article 4 (Receipt of Written Communications) (1) Unless otherwise agreed by the parties, any written notice shall be delivered to the addressee personally. (2) If there is no way the personal delivery under paragraph (1) of this article can be effected, a written notice shall be deemed to have been delivered to the addressee when it is properly delivered at the place of his domicile, business or mailing address. (3) In applying paragraph (2) of this Article, if none of the addressee's place of domicile, business and mailing address can be found after making a reasonable inquiry, a written notice shall be deemed to have been delivered to the addressee when it is posted to the last-known place of his domicile, business or mailing address by registered mail or any other means which provides a record of the sending of notice. (4) The provisions of paragraphs (1) through (3) of this Article shall not apply to the process of service by the court. ■ Article 5 (Waiver of Right to Object) A party who knows that the other party violated any non-mandatory provision of this Act or any requirement under the arbitration agreement and yet proceeds with the arbitration without stating his objection to such violation without undue delay or, if a time-limit is provided therefor, within such period of time, shall be deemed to have waived his right to object. ■ Article 6 (Extent of Court Intervention) No court shall intervene in matters governed by this Act, except where so provided in this Act. ■ Article 7 (Court of Competent Jurisdiction) (1) Matters prescribed in any of the following subparagraphs shall fall under the jurisdiction of the district court or its branch (hereinafter referred to as the "court" in this Article) designated by an arbitration agreement, under the jurisdiction of the court of competent jurisdiction over the place of arbitration in the absence of such designation, under the jurisdiction of the court of competent jurisdiction over the respondent's place of domicile or business if the place of arbitration has not been determined, under the jurisdiction of the court of competent jurisdiction over the place of residence if none of those can be found, or under the jurisdiction of the court of competent jurisdiction over the last-known place of domicile or business if the place of residence can not be found: 1. Appointment of an arbitrator or arbitrators under Article 12 (3) and (4); 2. Decision on the request for challenging an arbitrator under Article 14 (3); 3. Decision on the request for terminating the mandate of an arbitrator under Article 15 (2); 4. Decision on the jurisdiction of the arbitral tribunal at the request under Article 17 (6); and 5. Decision on the request for challenging an expert under Article 27 (3). (2) The taking of evidence under Article 28 shall fall under the jurisdiction of the court of competent jurisdiction over the place where the evidence is to be taken. (3) Matters prescribed in any of the following subparagraphs shall fall under the jurisdiction of the court as designated by an arbitration agreement, and in absence of such designation, under the jurisdiction of the court of competent jurisdiction over the place of arbitration: 1. Deposit of the original copy of the award under Article 32 (4); and 2. Petition to a court for setting aside the award under Article 36 (1). (4) A petition to a court for recognition or enforcement of an arbitral award under Articles 37 through 39 shall fall under the jurisdiction of a court as prescribed in any of the following subparagraphs: 1. The court which is designated by an arbitration agreement; 2. The court which has jurisdiction over the place of arbitration; 3. The court which has jurisdiction over the place where respondent's property is located; and 4. The court which has jurisdiction over respondent's place of domicile or business, the place of residence if none of those can be found, or the last-known place of domicile or business if the place of residence can not be found. CHAPTER II ARBITRATION AGREEMENT ■ Article 8 (Form of Arbitration Agreement) (1) An arbitration agreement may be in the form of a separate agreement or in the form of an arbitration clause in a contract. (2) An arbitration agreement shall be in writing. (3) Any of the following subparagraphs shall be deemed to be an arbitration agreement in writing: 1. In a case where an arbitration agreement is contained in a document signed by the parties; 2. In a case where an arbitration agreement is contained in an exchange of letters, telegrams, telex or other means of telecommunication which provide a record of the agreement; and 3. In a case where the inclusion of an arbitration agreement in the documents exchanged between the parties is alleged by one party and not denied by the other party. (4) The reference in a contract to a document containing an arbitration clause shall be deemed to constitute an arbitration agreement; however, that the contract is in writing and the reference is such as to make that clause part of the contract. ■ Article 9 (Arbitration Agreement and Filing Lawsuit before Court) (1) A court before which an action is brought in a matter which is the subject of an arbitration agreement shall, if the respondent raises a plea for the existence of an arbitration agreement, reject the action unless the court finds that the arbitration agreement is null and void, inoperative or incapable of being performed. (2) The respondent shall raise a plea under paragraph (1) of this Article not later than when submitting his first defense on the merits of the action. (3) While an action referred to in paragraph (1) of this Article is pending before the court, arbitral proceedings may nevertheless be commenced or continued, and an award may be made. ■ Article 10 (Arbitration Agreement and Interim Measures by Court) A party to an arbitration agreement may file, before or during arbitral proceedings, with a court an interim measure of protection. CHAPTER III ARBITRAL TRIBUNAL ■ Article 11 (Number of Arbitrators) (1) The parties shall be free to determine the number of arbitrators by agreement. (2) Failing such agreement referred to in paragraph (1) of this Article, the number of arbitrators shall be three. ■ Article 12 (Appointment of Arbitrators) (1) No person shall be precluded by reason of his nationality from acting as an arbitrator, unless otherwise agreed by the parties. (2) The parties shall be free to agree on a procedure of appointing the arbitrator or arbitrators. (3) Failing such agreement referred to in paragraph (2) of this Article, the procedure of appointing arbitrators shall be as follows: 1. In an arbitration with a sole arbitrator: if the parties are unable to agree on the arbitrator within thirty days after a party has received a request to appoint the arbitrator from the other party, the arbitrator shall be appointed, upon request of a party, by the court; 2. In an arbitration with three arbitrators: each party shall appoint one arbitrator, and the two arbitrators thus appointed shall appoint the third arbitrator. If a party fails to appoint the arbitrator within thirty days after the party received a request to do so from the other party, or if the two arbitrators fail to agree on the third arbitrator within thirty days of their appointment, the appointment shall be made, upon request of a party, by the court. (4) In a case that falls under any of the following subparagraphs nonetheless an agreement by the parties in paragraph (2) of this Article, the appointment of arbitrator or arbitrators shall be made, upon request of a party, by the court: 1. A party fails to appoint arbitrator under the agreed procedure; 2. The parties or two arbitrators fail to appoint arbitrator under the agreed procedure; and 3. A third party, including without limitation an institution entrusted to appoint the arbitrator or arbitrators, fails to appoint arbitrator or arbitrators. (5) A decision by a court on a matter under paragraphs (3) and (4) of this Article shall be subject to no appeal. ■ Article 13 (Grounds for Challenge against Arbitrator) (1) When a person is approached in connection with his possible appointment as an arbitrator or has already been appointed as such, he shall disclose without delay any circumstances likely to give rise to justifiable doubts as to his impartiality or independence. (2) An arbitrator may be challenged only if any circumstance referred to in paragraph (1) of this Article exists, or if he does not possess qualifications agreed to by the parties, however, that a party may challenge an arbitrator appointed by him, or in whose appointment he has participated, only for reasons of which he becomes aware after the appointment has been made. ■ Article 14 (Procedure to Challenge Arbitrator) (1) The parties shall be free to agree on a procedure to challenge the arbitrator. (2) Failing such agreement referred to in paragraph (1) of this article, a party who intends to challenge an arbitrator shall, within fifteen days after becoming aware of the constitution of the arbitral tribunal or after becoming aware of any circumstance referred to in Article 13 (2), submit an application in writing for a challenge of arbitrator with reasons for the challenge to the arbitral tribunal. Unless the challenged arbitrator withdraws from his office or the other party agrees to the challenge, the arbitral tribunal shall decide on the challenge. (3) If a challenge under the procedure of paragraph (1) or (2) of this Article is not successful, the challenging party may request, within thirty days after having received notice of the decision rejecting the challenge, the court to decide on the challenge. In this case, the arbitral tribunal may, even if such a request is pending in court, continue the arbitral proceedings or make an award. (4) The decision of the court on the challenge under paragraph (3) of this Article shall be subject to no appeal. ■ Article 15 (Termination of Mandate of Arbitrator Due to Failure or Impossibility to Act) (1) If an arbitrator becomes de jure or de facto unable to perform his functions or delays his performance without justifiable reason, his mandate terminates if he withdraws from his office or if the parties agree on the termination. (2) If a controversy remains concerning the termination of the mandate of an arbitrator under paragraph (1) of this Article, any party may request the court to decide on the termination of the mandate. (3) The decision of the court on the termination of the mandate under paragraph (2) of this Article shall be subject to no appeal. ■ Article 16 (Appointment of Substitute Arbitrator) Where the mandate of an arbitrator terminates, a substitute arbitrator shall be appointed according to the procedure that was applied for the appointment of the arbitrator being replaced. ■ Article 17 (Ruling of Arbitral Tribunal on Jurisdiction) (1) The arbitral tribunal may rule on its own jurisdiction, including any objections with respect to the existence or validity of the arbitration agreement. For that purpose, an arbitration clause which forms part of a contract shall be treated as an agreement independent of the other terms of the contract. (2) A plea that the arbitral tribunal does not have jurisdiction shall be raised not later than the submission of the statement of defense on the merits. A party shall not be precluded from raising such a plea by the fact that he has appointed, or participated in the appointment of, an arbitrator. (3) A plea that the arbitral tribunal is exceeding the scope of its authority shall be raised as soon as the matter alleged to be beyond the scope of its authority is raised during the arbitral proceedings. (4) The arbitral tribunal may, in either case of paragraphs (2) and (3), admit a later plea if it considers the delay justified. (5) The arbitral tribunal may rule a plea referred to in paragraph (2) or (3) either as a preliminary question or in an arbitral award on the merits. (6) If the arbitral tribunal rules as preliminary question that it has jurisdiction under paragraph (5), any party who is dissatisfied with that ruling may request, within thirty days after having received notice thereof, the court to decide on the jurisdiction of the arbitral tribunal. (7) While a request under paragraph (6) is pending at the court, the arbitral tribunal may continue the arbitral proceedings or make an arbitral award. (8) The review of authority which is conducted by a court following a request therefor under paragraph (6) shall be subject to no appeal. ■ Article 18 (Interim Measure) (1) Unless otherwise agreed by the parties, the arbitral tribunal may, at a request of a party, order any party to take such interim measure of protection as the arbitral tribunal may consider necessary in respect of the subject-matter of the dispute. The arbitral tribunal may determine the amount of security to be provided by the respondent in lieu of such measure. (2) The arbitral tribunal may order the party requesting the interim measure to provide appropriate security. CHAPTER IV ARBITRAL PROCEEDINGS ■ Article 19 (Equal Treatment of Parties) The parties shall be treated with equality in the arbitral proceedings and each party shall be given a full opportunity to present his case. ■ Article 20 (Arbitral Proceedings) (1) Subject to the mandatory provisions of this Act, the parties may agree on the procedures to be followed in the arbitral proceedings. (2) Failing such agreement referred to in paragraph (1), the arbitral tribunal may, subject to the provisions of this Act, conduct the arbitration in such manner as it considers appropriate. The power conferred upon the arbitral tribunal shall include the power to determine the admissibility, relevance, and weight of any evidence. ■ Article 21 (Place of Arbitration) (1) The parties shall be free to agree on the place of arbitration. (2) Failing such agreement referred to in paragraph (1), the place of arbitration shall be determined by the arbitral tribunal having regard to the circumstances of the case, including the convenience of the parties. (3) Notwithstanding the provisions of paragraphs (1) and (2), the arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it considers appropriate for consultation among its members, for hearing witnesses, experts or the parties, or for inspection of goods, other property or documents. ■ Article 22 (Commencement of Arbitral Proceedings) (1) Unless otherwise agreed by the parties, the arbitral proceedings in respect of a particular dispute shall commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent. (2) The request referred to in paragraph (1) shall contain references to the parties, subject-matter of the dispute and contents of the arbitration agreement. ■ Article 23 (Language) (1) The parties shall be free to agree on the language or languages to be used in the arbitral proceedings, and failing such agreement, the arbitral tribunal shall determine the language or languages to be used in the arbitral proceeding, otherwise the Korean language shall be used. (2) The language or languages referred to in paragraph (1), unless otherwise specified therein, shall apply to any written statement by a party, any hearing and any award, decision or other communication by the arbitral tribunal. (3) The arbitral tribunal, if considered necessary, may order a party to submit documentary evidence accompanied by a translation thereof into the language or languages referred to in paragraph (1). ■ Article 24 (Complaint and Answer) (1) Within the period of time agreed by the parties or determined by the arbitral tribunal, the claimant shall submit a complaint containing the claim for relief and the facts supporting his claim to the arbitral tribunal, and the respondent shall state his defense with respect to such complaint. (2) The parties may submit with their complaint or answer the documents they consider to be relevant or may add a reference to the method of evidence they will submit later. (3) Unless otherwise agreed by the parties, either party may amend or supplement his complaint or answer during the course of the arbitral proceedings; however, that this shall not apply in case the arbitral tribunal considers that such amendment or supplement might cause considerable delay in the arbitral proceedings. ■ Article 25 (Hearings) (1) Subject to any contrary agreement by the parties, the arbitral tribunal shall decide whether to hold oral hearings or whether the proceedings shall be conducted only on the basis of documents or other materials, however, that unless the parties have agreed that no hearings shall be held, the arbitral tribunal shall hold such hearings at an appropriate stage of the proceedings, if so requested by a party. (2) The arbitral tribunal shall give the parties sufficient advance notice of any oral hearing and of any meeting for the purpose of inspection of evidence. (3) All statements, documents or other information submitted to the arbitral tribunal by a party shall be communicated to the other party. (4) Any expert report or evidentiary document on which the arbitral tribunal may rely in making its decision shall be communicated to the parties. ■ Article 26 (Default of Party) (1) If the claimant fails to submit the complaint pursuant to Article 24 (1), the arbitral tribunal shall terminate the proceedings. (2) If the respondent fails to communicate his statement of defense under Article 24 (1), the arbitral tribunal shall continue the proceedings without treating such failure in itself as an admission of the claimant's allegations. (3) If any party fails to appear at oral hearing or to produce documentary evidence within a fixed period of time, the arbitral tribunal may continue the proceedings and make the award on the evidence before it. (4) The provisions of paragraphs (1) through (3) shall not apply, if otherwise agreed by the parties, or if the arbitral tribunal considers that there exists any sufficient cause for the failure. ■ Article 27 (Expert) (1) Unless otherwise agreed by the parties, the arbitral tribunal may appoint one or more experts to report to it on specific issues to be determined by it. In this case, the arbitral tribunal may require a party to give the expert any relevant information or to produce, or to provide access to, any relevant documents, goods or other property for his inspection. (2) Unless otherwise agreed by the parties, if a party so requests or if the arbitral tribunal considers it necessary, the arbitral tribunal may request the expert to participate in oral hearing where he answers the questions of the parties. (3) The provisions of Articles 13 and 14 shall apply mutatis mutandis to the expert as appointed by the arbitral tribunal. ■ Article 28 (Court Assistance in Taking Evidence) (1) If a party so requests or if the arbitral tribunal considers it necessary, the arbitral tribunal may request to a competent court assistance in taking evidence. (2) In case where paragraph (1) applies, the arbitral tribunal may, in writing, specify the matters to be entered in the report on evidence by the court and others subject to the taking of evidence. (3) The court to which the arbitral tribunal requests the assistance shall, after taking evidence, send the records with respect to the taking of evidence, such as a copy of the report on witnesses examination and a copy of the report on inspection to the arbitral tribunal without delay. (4) The arbitral tribunal shall pay necessary expenses for taking evidence to the court to which it requests the assistance. CHAPTER V ARBITRAL AWARD ■ Article 29 (Rules Applicable to Substance of Dispute) (1) The arbitral tribunal shall decide the dispute in accordance with such rules of law as are designated by the parties. Any designation of the law or legal system of a given nation shall be construed, unless otherwise expressed, as directly referring to the substantive law of the nation and not to its International Private Act. (2) Failing the designation referred to in paragraph (1), the arbitral tribunal shall apply the law of the nation which it considers having the closest connection with the subject-matter of the dispute. (3) The arbitral tribunal shall decide ex aequo et bono or as amiable compositeur only if the parties have expressly authorized it to do so. (4) The arbitral tribunal shall decide in accordance with the terms of the contract and shall take into account the usages of the trade applicable to the transaction. ■ Article 30 (Decision-making by Arbitral Tribunal) In arbitral proceedings with not less than three arbitrators, any decision of the arbitral tribunal shall be made, unless otherwise agreed by the parties, by a majority of all its members: however, that questions of procedure may be decided by a presiding arbitrator, if so agreed by the parties or if so authorized by all members of the arbitral panel. ■ Article 31 (Settlement) (1) If, during the arbitral proceedings, the parties settle the dispute, the arbitral tribunal shall terminate such proceedings. In this case, if requested by the parties, the arbitral tribunal may record the settlement in the form of an arbitral award on agreed terms. (2) An award on agreed terms under paragraph (1) shall be made in accordance with the provisions of Article 32 and shall state that it is an award. (3) An arbitral award in this Article shall have the same effect as any other award on the merits of the case. ■ Article 32 (Form and Contents of Award) (1) The award shall be made in writing and shall be signed by the arbitrator or arbitrators: however, that if, in arbitral proceedings with not less than three arbitrators, the signature of all members of the arbitral tribunal is not possible, the signature of the majority of all members of the arbitral tribunal shall suffice with the statement of the reason for any omitted signature. (2) The award shall state the reasons upon which it is based: however, that this shall not apply if the parties have agreed that no reason are to be given or the award is an award on agreed terms under Article 31. (3) The award shall state its date and place of arbitration. In this case, the award shall be deemed to have been made on that date and at that place. (4) The authenticated copy of the award made and signed in accordance with paragraphs (1) through (3) of this Article shall be delivered to each party in accordance with Article 4 (1) through (3), and the original copy of the award shall be sent to and deposited with the competent court, accompanied by a document verifying such delivery to the parties. ■ Article 33 (Termination of Proceedings) (1) The arbitral proceedings are terminated by the final award or by a decision of the arbitral tribunal in accordance with paragraph (2). (2) The arbitral tribunal shall make a decision for the termination of the arbitral proceedings in a case falling under any of the following subparagraphs: 1. When the claimant withdraws his claim, unless the respondent objects thereto and the arbitral tribunal recognizes a legitimate interest on his part in obtaining a final settlement of the dispute; 2. When the parties agree on the termination of the proceedings; and 3. When the arbitral tribunal finds that the continuation of the proceedings has for any other reason become unnecessary or impossible. (3) The mandate of the arbitral tribunal shall terminate with the termination of the arbitral proceedings, subject to the provisions of Article 34. ■ Article 34 (Correction or Interpretation of Award or Additional Award) (1) Within thirty days of receipt of the authenticated copy of the award, unless another period of time has been agreed upon by the parties, a party may request the arbitral tribunal to make a correction or interpretation of award, or an additional award for any of the following subparagraphs: 1. To correct any errors in computation, any clerical or typographical errors or any errors of similar nature; 2. To give an interpretation of a specific point or part of the award, if so agreed by the parties; or 3. To make an additional award as to claims presented in the arbitral proceedings but omitted from the award, unless otherwise agreed by the parties. (2) In case of making any request in accordance with paragraph (1), a party shall give notice to the other party to that effect. (3) The arbitral tribunal shall decide within thirty days of the receipt the request under paragraph (1) 1 or 2 and within sixty days of the receipt of the request under paragraph (1) 3 respectively. The interpretation under paragraph (1) 2 shall form part of the award. (4) The arbitral tribunal may correct any error of the type referred to in paragraph (1) 1 within thirty days of the date of the award. (5) The arbitral tribunal may extend, if necessary, any period of time as referred to in paragraph (3). (6) The provision of Article 32 shall apply mutatis mutandis to the form of a correction or interpretation of award or to an additional award. CHAPTER VI EFFECT OF AWARD AND RECOURSE AGAINST ■ Article 35 (Effect of Arbitral Award) The arbitral award shall have the same effect on the parties as the final and conclusive judgement of the court. ■ Article 36 (Petition to Court to Set Aside Award) (1) Recourse against an arbitral award may be made only by a petition to a court for setting aside the award. (2) An arbitration award may be set aside by the court only if: 1. The party making the application furnishes proof that: (a) A party to the arbitration agreement was under incapacity under the law applicable to him; or the said agreement is not valid under the law to which the parties have subjected it, or failing any indication thereon, under the law of the Republic of Korea; or (b) A party making the application was not given proper notice of the appointment of the arbitrator or arbitrators or of the arbitral proceedings or was otherwise unable to present his case; or (c) The award has dealt with a dispute not contemplated by or not falling within the terms of the submission to arbitration, or contains decisions on matters beyond the scope of the submission to arbitration: however, that if the decisions on matters submitted to arbitration can be separated from those not submitted, only that part of the award which contains decisions on matters not submitted to arbitration may be set aside; or (d) The composition of the arbitral tribunal or the arbitral proceedings were not in accordance with the agreement of the parties, unless such agreement was in conflict with any mandatory provision of this Act from which the parties can not derogate, or failing such agreement, were not in accordance with this Act; or 2. The court finds on its own initiative that: (a) The subject-matter of the dispute is not capable of settlement by arbitration under the law of the Republic of Korea; or (b) The recognition or enforcement of award is in conflict with the good morals and other public policy of the Republic of Korea. (3) An application for setting aside the award may not be made after three months have elapsed from the date on which the party making that application has received the duly authenticated copy of the award or the duly authenticated copy of a correction or interpretation of award or an additional award under Article 34. (4) After a final and conclusive judgement for recognition or enforcement of the award by a court of the Republic of Korea is rendered, an application for setting aside the award may not be made. CHAPTER VII RECOGNITION AND ENFORCEMENT OF AWARD ■ Article 37 (Recognition and Enforcement of Arbitral Award) (1) Recognition or enforcement of an award shall be confirmed by the judgment by a court. (2) The party applying for recognition or enforcement of an award shall submit the following documents: however, that if the award or arbitration agreement is made in a foreign language, a duly certified translation into the Korean language shall be accompanied: 1. The duly authenticated original award or a duly certified copy thereof; or 2. The original arbitration agreement or a duly certified copy thereof. ■ Article 38 (Domestic Arbitral Award) An arbitral award made in the Republic of Korea shall be recognized or enforced, unless any ground referred to in Article 36 (2) can be found. ■ Article 39 (Arbitral Award in Foreign Country) (1) Recognition or enforcement of a foreign award which is subject to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, shall be governed by that Convention. (2) The provisions of Article 217 of the Civil Procedure Act, Articles 26 (1) and 27 of the Civil Execution Act shall apply mutatis mutandis to the recognition or enforcement of a foreign award which is not subject to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards. CHAPTER VIII SUPPLEMENTARY PROVISIONS ■ Article 40 (Assistance to Commercial Arbitration Institution) In order to secure the impartial and rapid settlement of domestic or international commercial disputes and establish the international transaction order by implementing this Act, the Government may provide the incorporated association conducting the commercial arbitration which is designated by the Minister of Commerce, Industry and Energy with all or part of its necessary expenses. ■ Article 41 (Establishment and Approval of Arbitration Rules) If an incorporated association which is designated as the commercial arbitration institution under Article 40 establishes or amends its arbitration rules, it shall obtain the approval of the Chief Justice of the Supreme Court. ADDENDA <Act No. 6465, Apr. 7, 2001> (1) (Enforcement Date) This Act shall enter into force on July 1, 2001. (2) through (4) Omitted.