Foreign Economic Arbitration Law of the Democratic People’s Republic of Korea (2014)

Suggested citations

AGLC4 | 대외경제중재법 2014 [Foreign Economic Arbitration Law of the Democratic People's Republic of Korea (2014)] [tr Daye Gang].

Bluebook | Daeoegyeongjejungjaebeob 2014 [Foreign Economic Arbitration Law of the Democratic People's Republic of Korea (2014)] translated in Law and North Korea by Daye Gang, https://www.lawandnorthkorea.com/. 


Adopted on July 21, Juche 88 (1999), as Directive No. 875 of the Presidium of the Supreme People’s Assembly

Amended and supplemented on July 29, Juche 97 (2008), as Directive No. 2806 of the Presidium of the Supreme People’s Assembly

Amended and supplemented on July 23, Juche 103 (2014), as Directive No. 92 of the Presidium of the Supreme People’s Assembly


CHAPTER I. BASICS OF FOREIGN ECONOMIC ARBITRATION LAW

Article 1 (Objectives of Foreign Economic Arbitration Law)

The Foreign Economic Arbitration Law of the Democratic People’s Republic of Korea shall strictly adopt systems and order in foreign economic dispute resolution to serve to correctly hear and resolve dispute cases and protect the rights and interests of the disputing parties.

Article 2 (Definition of terms)

The definitions of terms in this law are as follows. 

1. Foreign economic arbitration is a dispute resolution system to resolve a dispute occurring during foreign economic activity processes using an arbitral award from an arbitration department according to an arbitral agreement between the parties, rather than by a judgment of a court.

2. An arbitration agreement is a pledge to resolve any disputes that have already occurred or any disputes that could occur in the future in a contract between the parties, or in another economic legal relationship, by method of arbitration.

3. An arbitration department is a sole arbitrator or group of arbitrators composed of 3 arbitrators who are responsible for handling foreign economic dispute cases.

4. An arbitral award is a decision handed down by the arbitration department after hearing a foreign economic dispute case.

5. Foreign factors are conditions where one party among the parties is a corporation or individual of another country, or where things such as a place of business, domicile, address, disputed property, or place of arbitration is related to another country.

6. An arbitration committee is a permanent arbitration institution that organizes foreign economic dispute resolution work and resolves issues raised during the arbitration process.

7. A court is the highest court or the given province (or municipality directly under central authority) court, city (or district), County People's Court, or Special Court. 

8. The authorities concerned are the authorized State institutions beyond the courts. 

9. A conciliation is acts where the parties work towards reconciliation or compromise with each other through a third party becoming a conciliator for the dispute resolution. 

Article 3 (Nature of arbitration committees and foreign economic arbitration)

Resolution of foreign economic disputes shall be done by arbitration committees such as the Choson International Trade Arbitration Committee, the Choson Maritime Affairs Arbitration Committee, and the Choson Computer Software Arbitration Committee. The Choson International Trade Arbitration Committee shall hear and resolve disputes related to trade, investment, and labour; the Choson Maritime Affairs Arbitration Committee shall hear and resolve disputes occurring during maritime affairs economic activities processes, and the Choson Computer Software Arbitration Committee shall hear and resolve disputes related to computing software. Foreign economic arbitration shall not have regional jurisdictions or hierarchies and the arbitral award handed down by the arbitration department shall be the final decision.

Article 4 (Disputes resolved using foreign economic arbitration)

Disputes resolved through foreign economic arbitration are as follows. 

1. Disputes that have occurred in foreign economic activity processes where there is an arbitration agreement between the parties together with a foreign factor

2. Disputes where an authorized State institution has authorized the arbitration committee to resolve the dispute through foreign economic arbitration process

Article 5 (Parties to arbitration)

The parties to foreign economic arbitration shall be given institutions, enterprises and organizations and foreign investment enterprises. Depending on the case, citizens may also be parties.

Article 6 (Dispute resolution principles)

Foreign economic dispute resolution shall guarantee objectivity, scientificity, fairness, and speed, and responsibility shall be imposed on the party at fault.

Article 7 (Legal effect of service)

Unless the parties have agreed otherwise, the legal effect of service shall be that in cases where it has been directly delivered to a party or delivered to his or her place of business, domicile, or postal address, it shall be taken to have been received. However, in cases where the party’s address is unknown, it shall be taken to have been received only in cases where the service was dispatched to the last known place of business, domicile, or postal address.

Article 8 (Right to lodgement of opinion and its legal effect)

In cases where a party has not raised an opinion immediately or within a period determined and allowed an arbitral case to continue to be conducted, even knowing that an arbitration is proceeding counter to the law or an agreement related to the arbitration, the party shall be taken to have abandoned the right to lodgement of an opinion.

Article 9 (Transfer of control for arbitral case)

In cases where an arbitral case regulated under Article 4 of this law has been raised with the court or the authorities concerned, or in cases where the parties have raised a lawsuit in a court even after making an arbitration agreement, a case shall be handed over to the given arbitration committee. In cases where the arbitration agreement is null, the foregoing paragraph shall not be applied.

Article 10 (Guarantee of independence of arbitration department)

The State shall thoroughly assure the independence of the arbitration department in the handling of foreign economic arbitration cases. Except in cases determined by this law, it may not interfere with the handling of arbitral cases.

Article 11 (International exchange and cooperation)

The State shall respect international law and international customs in foreign economic arbitration activities, and must develop cooperation and exchange with international organizations and other countries.


CHAPTER II. ARBITRATION AGREEMENTS

Article 12 (Arbitration agreements and their methods)

Parties may agree to resolve disputes that may occur during foreign economic activity processes through the method of arbitration. Arbitration agreements shall be done by the method of including an arbitration clause in a given contract or through an arbitration agreement document separate from the contract. An arbitration agreement may also be made after the dispute has occurred.

Article 13 (Form of arbitration agreement)

Parties must make arbitration agreements in writing. Cases where in a document the parties have marked with their name by hand, or where in a place such as correspondence, fax, or electronic mail exchanged between the parties, there is reflected any content related to an intention to arbitrate, and even in cases where an arbitration agreement was made orally, through acts, or through another means or form, that content has been recorded or confirmed by relying upon evidence, it shall be recognised as an arbitration agreement.

Article 14 (Cases where recognised as arbitration agreement even without agreement in writing)

In cases where the suggestion to agree to arbitration of one party has not been denied by the other party, or in cases where the defendant does not deny the plaintiff’s suggestion of arbitration and submits a defence case, it may be accepted as an arbitration agreement even without an agreement in writing.

Article 15 (Grounds for nullity of arbitration agreement)

In the following cases, an arbitration agreement shall not have legal effect. 

1. In cases where an arbitration agreement has exceeded the scope of arbitration jurisdiction

provided for by law

2. In cases where a party was a person who is incompetent to act at the time of the arbitration agreement

3. In cases where an arbitration agreement was made by relying upon coercion

Article 16 (Relationship between arbitration agreement and preservation measures)

An application made by one party to an arbitration committee, arbitration department, court, or authorities concerned for temporary measures such as property preservation measures or suspension of processes before suggesting an arbitration or during the life of the case, and its approval, does not contravene the arbitration agreement.

Article 17 (Conditions for suggestion of arbitration)

Conditions for suggesting arbitration are as follows. 

1. There must be an arbitration agreement. 

2. There must be a detailed factual claim and basis.

3. It must be a dispute included in the jurisdiction of the arbitration committee.

An arbitration committee must not receive a suggestion of arbitration that does not have a condition as in Clause 1.

Article 18 (Method to suggest arbitration and notification of receipt and rejection)

An arbitration application shall be made by the method of submitting a suggestion of arbitration document and attached documents as determined by the arbitration committee to the arbitration committee. The arbitration committee shall review the suggestion of arbitration document within 5 days of the day it was received, and in cases where the suggestion of arbitration has been approved a notification of receipt shall be sent to each party, and in cases where it was rejected, must send a notice of rejection that states the reasons to the applicant party.

Article 19 (Suggestion of arbitration by legal representative)

A party may suggest arbitration or make a counter-argument through a legal representative. A legal representative may be a citizen of the Republic or a foreigner. In these cases, a legal representative must submit a legal representation power of attorney to the arbitration committee or arbitration department.


CHAPTER III. ARBITRATION DEPARTMENTS

Article 20 (Composition of arbitration department)

The number of arbitrators in the arbitration department may be decided by the parties by agreement. In cases where there is no agreement by the parties, the Arbitration Committee shall determine the number of arbitrators to be one person or three people.

Article 21 (Selection process of arbitrators)

The selection process for an arbitrator may be decided by agreement among the parties. In cases where there is no agreement between the parties, an arbitrator shall be determined using the following process. 

1. In cases where the arbitration department is sought to be composed of three arbitrators, the parties shall each select one arbitrator, then the two selected arbitrators shall select a head arbitrator within 15 days and, in cases where the parties have not selected arbitrators or the two selected arbitrators have not been able to select a head arbitrator, the Arbitration Committee shall select them.

2. In cases where the arbitration department is sought to be composed of one arbitrator, if the parties cannot agree on the selection of an arbitrator during the period determined, the arbitration department shall select an arbitrator according to the requirements of one party. The parties may not raise an opinion about a decision made by the Arbitration Committee made according to paragraph 2.

Article 22 (Duties of Arbitration Committee in arbitrator selection)

In cases where the Arbitration Committee selects an arbitrator, it must select a fair and independent arbitrator based on the requirements of the parties or the qualifications of arbitrators regulated by this law.

Article 23 (Qualifications of arbitrators)

The following members may be arbitrators.

1. Members of the Arbitration Committee

2. Workers of the legal or economic sectors who have the ability to hear and resolve dispute cases

3. Workers who have experience working as lawyers or Judges

4. Overseas Koreans or foreigners well known overseas in the arbitration field

Article 24 (Reasons to exclude arbitrator)

A person selected as arbitrator must, from the time he or she has been selected to the time the handling of the case concludes, notify the Arbitration Committee and parties in time of all reasons that may raise suspicions about his or her fairness and independence. 

An arbitrator who has a reason to have his or her fairness and independence placed under suspicion, or who does not have the qualifications determined in this law or the qualifications agreed between the parties, may be excluded.

Article 25 (Exclusion process for arbitrators)

Parties may agree on an exclusion process for arbitrators. In cases where there is no agreement between the parties, a party seeking to exclude an arbitrator must, within 10 days of the day a reason to exclude an arbitrator as regulated in Article 24 of this law coming to the party’s knowledge, send to the arbitration department an application document to exclude an arbitrator stating the given reason. In cases where an arbitrator who has received an exclusion application does not resign or where the other party does not consent to the exclusion application, the arbitration department must make a decision to approve or reject the exclusion application. In cases where an arbitrator is not excluded according to an exclusion process agreed upon by the parties or according to the process in the foregoing paragraph, the applicant for exclusion may raise an exclusion application again to the arbitration committee within 15 days of the day the notification of rejection of the exclusion application is received from the arbitration department. Parties may not raise an opinion about the decision of the arbitration committee related to the arbitrator exclusion application, and an arbitrator may handle the given case and make an arbitral award even during the period where an exclusion application has been raised in respect of that arbitrator.

Article 26 (Reasons for resignation or substitution of arbitrator)

Cases where an arbitrator personally resigns and cases where an arbitrator is substituted by agreement of the parties or a decision of an arbitration committee are as follows. 

1. In cases where an arbitrator has a legal or practical reason for not being able to do his or her work

2. In cases where an arbitrator delays the resolution of a case without a lawful reason

Article 27 (Process for re-selecting arbitrator)

In cases where an arbitrator is excluded, resigns, or is substituted, the selection of a different arbitrator shall follow the process applied to the selection of the arbitrator who was excluded, resigned, or is being substituted.

Article 28 (Authority of arbitration department)

The arbitration department has authority to decide on the existence of an arbitration agreement, any opinions raised related to its legal effect, whether any evidence shall be used as the foundation of a dispute resolution and judgment and the validity of evidence, and the jurisdiction of the arbitration department. In cases of decisions about the existence of an arbitration agreement and its legal effect, the arbitration department must consider the arbitration clause in the contract separately to the legal effect of the other clauses. Even if it is decided that the contract related to the dispute is invalid, there is no influence on the legal effect of the arbitration clause.

Article 29 (Lodgement of opinion related to arbitration department)

Parties must raise any opinion that the arbitration department lacks jurisdiction within the submission period of the first defence case. In these cases, an opinion may be raised even if that party selected the arbitrator or was involved in that selection. An opinion that the arbitration department has exceeded its scope of authority in its work must be raised immediately upon the given reason appearing within the case handling period. In cases where the disputing parties’ lodgement of opinion is late for a proper reason, the arbitration department may accept that opinion.

Article 30 (Handling of opinion raised related to the arbitration department)

The arbitration department may decide opinions regulated in Article 29 of this law separately first, or may decide them by including them in the arbitral award. In cases where the arbitration department separately decides that it has jurisdiction, a party with an opinion may request a fresh decision from the arbitration committee within 15 days of the day notification of the given decision was received, and may not raise an opinion about a decision made by the arbitration committee related to the opinion raised. The arbitration department may continue to handle the given case or make an arbitral award even during the period the opinion raised by the arbitration committee is being handled.

Article 31 (Temporary measures)

The arbitration committee or arbitration department may make decisions about temporary measures such as property preservation measures or suspension of processes related to dispute resolution. In these cases, a party may be required to supply a guarantee related to the temporary measure. In cases where a party does not execute the temporary measures decision, the arbitration department may request its execution by a court or the authorities concerned. A court or the authorities concerned must take the given measures within 10 days of the day the temporary measures request was received, and must inform the arbitration department of the results.

Article 32 (Revocation or cancellation of temporary measures)

In cases where it is proven that a decision about temporary measures or their execution is no longer required or was made in error, the arbitration committee or arbitration department must immediately cancel or suspend it.


CHAPTER IV. ARBITRATION PROCESS

Article 33 (Status of parties)

Parties shall have equal status in the handling of dispute cases and may sufficiently state their alleged facts.

Article 34 (Decision of arbitration process)

The arbitration process may be determined by agreement between the parties. In cases where there is no agreement between the parties, the processes of this law shall be followed.

Article 35 (Place of arbitration)

The place of arbitration shall be determined by agreement between the parties. In cases where there is no agreement between the parties, the arbitration department shall determine the place of arbitration by taking into consideration the convenience to the parties and the general situation relating to resolving a case. As long as there is no different agreement between the parties, the arbitration department may do things such as consultation among arbitrators, confirmation of facts with witnesses or others related to the case such as expert witnesses, or investigation of property or documents in required places outside of the place of arbitration

Article 36 (Commencement day of arbitration)

As long as there is no agreement between the parties, arbitration commences from the day the respondent receives the notification of receipt of arbitration.

Article 37 (Arbitration language)

Parties may agree on an arbitration language. In cases where there is no agreement between the parties, the arbitration department shall decide the arbitration language, and in cases where there is no decision of the arbitration department, it shall be Korean. The designated arbitration language shall be used in the parties’ documents, arbitration hearings, arbitral award, decisions, and other notifications.

Article 38 (Claim and defence)

The plaintiff must argue its factual claims, the content of the dispute, and its demands within the period agreed among the parties or the period determined by the arbitration department, and the defendant must argue a defence in response. Parties may submit documents or exhibits that can prove their argument and, during the period the case is being handled, may amend or supplement the content of their claim or the content of their defence. In cases where the arbitration department accepts that the amendment or supplementation of the content of a claim or content of a defence of a party is unreasonable and would delay the resolution of a case, it may not give approval for it.

Article 39 (Decision on arbitration hearing method)

The arbitration department must decide whether it will hold an arbitration hearing orally or on the papers. In these cases, it must come to an agreement with the parties.

Article 40 (Handling of a party’s non-fulfilment of a duty)

In cases where a plaintiff does not submit a claim document without a lawful reason, the handling of the case shall be suspended and concluded, and in cases when a defendant does not submit a defence case without a sufficient reason, the handling of the case shall continue. In cases relating to the foregoing paragraph, the fact that a defendant has not submitted a defence case shall not be acceptance of the plaintiff’s argument. In cases where one party between the plaintiff or the defendant does not participate in the arbitration hearing or submit evidence without a lawful reason, the arbitration department may hold an arbitration hearing and make an arbitral award based on the evidence that has been submitted. In cases where there is a different agreement between the parties or the arbitration department accepts that there is a lawful reason, the foregoing paragraph shall not be applied.

Article 41 (Expert witnesses and witnesses)

As long as there is no different agreement between the parties, the arbitration department shall designate expert witnesses for analysis and shall supply him or her with the required materials or may require the parties to submit things related to the analysis, such as documents and goods, to the expert witness. Upon the request of one party or in cases where the arbitration department accepts that it is necessary, the expert witness or witness may also be caused to participate in the arbitration hearing to respond to questions.

Article 42 (Request for evidentiary investigation)

The arbitration department may, upon application of a party or as necessary, conduct an evidentiary investigation or request an evidentiary investigation from a court or the authorities concerned. A party may also request an evidentiary investigation after receiving the approval of the arbitration department. In cases where an evidentiary investigation is requested, the required particulars shall be stated on the request document.

Article 43 (Notification of results of evidentiary investigation)

An institution that has received a request for an evidentiary investigation shall conduct an evidentiary investigation within 15 days, then must send the evidentiary investigation document, such as copies of the witness interrogation report, copies of the analysis report, or copies of the inspection report, to the arbitration department through the arbitration committee.

Article 44 (Counterclaim arbitration)

A defendant may apply for a counterclaim arbitration for an arbitral case it has received. A counterclaim arbitration must be directly related to the founding arbitration, and must be raised before the arbitration hearing ends. In cases where the arbitration committee accepts that the counterclaim arbitration would delay the handling of the arbitral case, it may choose not to accept the counterclaim arbitration.


CHAPTER V. ARBITRAL AWARDS

Article 45 (Governing laws of arbitral awards)

The governing law of the arbitral award shall be determined by agreement between the parties. If there is no agreement between the parties related to the governing law of the arbitral award, the arbitration department must apply the law it accepts to be most closely related to the dispute case and capable of being applied. In these cases, it must decide or make an arbitral award by taking into consideration the conditions of the contract and international custom.

Article 46 (Decision-making method for arbitration department)

Decision-making for an arbitration department composed of three arbitrators shall be made by majority decision. In cases where there is agreement between the parties or agreement between the members of the arbitration department, the head arbitrator shall make the final decision.

Article 47 (Reconciliation)

Parties may reconcile with each other at any time and at any stage of the handling of the arbitral case. In cases where the parties have reconciled, the arbitration department must conclude the handling of the case and make a reconciliation decision. A reconciliation decision shall have the same legal effect on the given case as an arbitral award.

Article 48 (Conciliation)

Foreign economic disputes may also be resolved by method of conciliation. A conciliation decision shall have the same legal effect on the given case as an arbitral award.

Article 49 (Form of drafting arbitral award document)

An arbitral award document shall be drafted in writing. The arbitral award document must have a marking of the arbitrator by his or her own hand, and an arbitral award document from an arbitration department composed of three arbitrators must have the markings of a majority of the arbitrators by their own hand.

Article 50 (Content of arbitral award document)

On the arbitral award document must be stated things such as the reasons that are the basis of the arbitral award, the drafting date of the arbitral award document, and the place of arbitration. The arbitral award shall be taken to have been made on the date and place stated on the arbitral award document.

Article 51 (Dispatch of arbitral award document)

When the arbitral award is made, the arbitration committee shall dispatch or directly give copies of the arbitral award document to the parties.

Article 52 (Conclusion of arbitration)

Arbitration concludes upon an arbitral award or, in the following cases, by decision of the arbitration department.

1. In cases where the plaintiff withdraws the suggestion of arbitration

2. In cases where the plaintiff and defendant have agreed to conclude the arbitration

3. In cases where the arbitration department accepts that continuing the arbitration is unnecessary or impossible

In cases where the arbitration department accepts that, despite the plaintiff withdrawing the suggestion of arbitration, but the defendant does not consent and has a proper interest in finally resolving the dispute, it must not conclude handling the arbitral case. The work of the arbitration department shall conclude together with the conclusion of the arbitration except in cases described in Article 54 and Article 59 of this law.

Article 53 (Correction of arbitral award document, application for interpretation and supplemental arbitral award)

In the following cases, as long as the parties have not decided on a different period, a party may apply for a correction or interpretation of the arbitral award document, or for a supplemental arbitral award, within 30 days of the day the arbitral award document was received.

1. In cases where things such as a calculation or wording defect in the arbitral award document are sought to be corrected

2. In cases where interpretation of part of the content of the arbitral award document is required

3. Where a claim was made but the issue was not included in the arbitral award document and a supplementary arbitral award is requested

In cases where one party has applied for a correction or interpretation of the arbitral award document or for a supplemental arbitral award, the arbitration department must notify the other party about it.

Article 54 (Correction or interpretation of arbitral award documents, supplemental arbitral awards)

If the arbitration department accepts that an application for correction or interpretation of an arbitral award document is justified, it must do that correction or interpretation within 30 days. In these cases, the interpretation document shall be one part of the arbitral award document. In cases where an application for a supplemental arbitral award is justified, the supplemental arbitral award must be made within 45 days. In inevitable cases, the arbitration department shall receive the consent of the arbitration committee to prolong the period for the correction or interpretation of the arbitral award document or to make a supplemental arbitral award. The form of correction or interpretation of an arbitral award document, or of a supplemental arbitral award, shall follow Article 49 and Article 50 of this law. 


CHAPTER VI. LEGAL EFFECT OF ARBITRAL AWARDS AND OPINIONS ON CANCELLATION

Article 55 (Effective date of arbitral award)

The legal effect of an arbitral award shall occur from the day the arbitral award document is drafted.

Article 56 (Raising the cancellation of an arbitral award)

A party with an opinion on an arbitral award may raise an opinion that it should be cancelled. An opinion for the cancellation of an arbitral award shall be filed in a court.

Article 57 (Reason for raising the cancellation of an arbitral award)

Raising a cancellation of an arbitral award may only be done in cases where the following facts have been proven.

1. The fact that a party was a person who is incompetent to act according to the governing law at the time of the arbitration agreement

2. The fact that the arbitration agreement has no legal effect under the law designated by the parties or, in cases where the parties did not designate the law, according to the law of the Republic

3. The fact that a party did not receive appropriate notification about the selection of the arbitrator or the arbitration process or that they could not protest for unavoidable reasons

4. The fact that the arbitral award took as its subject a dispute that is not the arbitration agreement, or that it exceeded the scope of the arbitration agreement

5. The fact that, in cases where the composition of the arbitration department or the arbitration process contravenes the agreement of parties complying with this law, or in cases where there is no agreement between the parties, it is a violation of this law

Article 58 (Validity period for application to cancel arbitral award)

The validity period for an application to cancel an arbitral award shall be 2 months from the day the parties received the arbitral award document or its corrected version, interpreted version, or supplemental arbitral award document. After the validity period passes or after an enforcement decision of a court for the arbitral award has been determined, an application to cancel the arbitral award may not be raised.

Article 59 (Measures of court related to the cancellation of an arbitral award)

A court must handle an application to cancel an arbitral award within two months of the day it is received. In cases where the application to cancel an arbitral award is justified, it will order another arbitration hearing and, in cases where the reasons for cancellation of the arbitral award do not bear a direct influence on the arbitral award, the court may request the arbitration committee to take measures required to eradicate the given reason.


CHAPTER VII. EXECUTION OF ARBITRAL AWARD

Article 60 (Execution of arbitral award)

The parties must correctly execute arbitral awards within the period specified in the arbitral award document. In cases where the arbitral award document has not determined a term of execution of the arbitral award, it must be executed immediately.

Article 61 (Application to execute arbitral award)

In cases where a responsible party does not fulfil a duty specified in the arbitral award document in time or has fulfilled it insincerely, the other party may apply for an execution of arbitral award to the court or the authorities concerned, directly or through the arbitration committee. To the application document for the execution of arbitral award shall be attached a copy of the arbitral award document.

Article 62 (Execution and sanctions measures for arbitral award)

The court or authorities concerned must review the application document and execute the arbitral award with a finding or a decision within 30 days of the day the application for the execution of arbitral award is received. In cases where a party has not executed an arbitral award, measures may be taken such as freezing bank accounts, suspension of processes for entry and exit of supplies, seizure and confiscation of property, levy of a penalty, suspension of business activities, or suspension of entry and exit.

Article 63 (Execution application to a court of a given country)

In cases where property to be executed according to the arbitral award is beyond the territory of the Republic, an application may be made to a court of the given country for the execution of the arbitral award.

Article 64 (Approval and execution of arbitral awards made by arbitration departments of other countries)

The approval and implementation of arbitral awards made by arbitration departments of other countries shall follow the given regulations of the Republic.

Article 65 (Reasons to reject the execution of arbitral awards made by arbitration departments of other countries)

In cases where the following facts have been proven, the execution of an arbitral award made by an arbitration department of another country may be rejected.

1. The fact that a party was a person incompetent to act at the time of the arbitration agreement according to the governing law, or the fact that an arbitration agreement does not have legal effect under the law designated by the parties or, in cases where the parties did not designate a law, the arbitration agreement does not have legal effect under the law of the country that conducted the arbitration hearing.

2. The fact that a party did not receive appropriate notification for the selection of an arbitration or the arbitration process or could not protest for unavoidable reasons

3. The fact that the arbitral award took as its subject a dispute that is not the arbitration agreement, or that it exceeded the scope of the arbitration agreement

4. The fact that, in cases where the composition of the arbitration department or the arbitration process did not comply with the agreement of the parties, or in cases where there is no agreement between the parties, did not comply with the country that conducted the arbitration hearing

5. The fact that the arbitral award does not yet influence the parties but that the arbitral award has been cancelled or its execution suspended by a court or according to a law of the country that made the arbitral award

6. The fact that the given dispute cannot be resolved using an arbitration process according to the law of the country that made the arbitral award 

7. The fact that the execution of the arbitral award would cause hindrance to the sovereignty, safety, or social order of the Republic

Last updated 10 September 2021

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