国际仲裁资料

COMMERCIAL ARBITRATION RULES

As Amended and Effective on December 10, 2015

THE JAPAN COMMERCIAL ARBITRATION

ASSOCIATION

COMMERCIAL ARBITRATION RULES

As Amended and Effective on December 10, 2015

CHAPTER I   General Provisions

Rule 1. Scope

These Commercial Arbitration Rules (the “Rules”) shall apply where the parties have agreed to refer their dispute to arbitration under the Rules, or to arbitration at the Japan Commercial Arbitration Association (the “JCAA”). Such agreement shall be called the “Arbitration Agreement.”

Rule 2. Definitions

1The term “Party” or “Parties” shall mean one or more claimants and respondents.

The term “in writing” shall include hard copy and elec- tronic documents. Electronic 2documents shall include electronic, magnetic and any other recording media used in information processing by a computer or other electronic device.

Rule 3. Arbitration Agreement and Derogation from the Rules

1If the Parties have entered into an Arbitration Agreement, the Rules shall be deemed to be incorporated into such Arbitration Agreement.

2The Parties may agree to derogate from or vary any of the Rules, subject to the consent of the arbitral tribunal. If all the arbitrators, upon their appointment, acknowledge such agreement, the arbitral tribunal shall be deemed to have consented.

Rule 4.  Interpretation of the Rules

If any question arises about the interpretation of the Rules, the interpretation of the JCAA shall prevail. The inter- pretation of an arbitral tribunal, however, shall prevail over that of the JCAA in the arbitration proceedings before such arbitral tribunal.

Rule 5. Communication

1Any notice, submission or transmission under the Rules (collectively, a “Communication”) shall be made by cou- rier, registered mail, e-mail, facsimile, or any other reason- able means, unless otherwise provided.

2A Communication shall be sent to the street address, habitual residence, or place of business of the recipient (including the street address or habitual residence of the recipient’s representative, if the recipient is a legal enti- ty or other association), the e-mail address usually used by the recipient (if the recipient has designated an e-mail address, such e-mail address), or any address desig- nated by the recipient (collectively, an “Address for Communication”).

3A Communication shall become effective when received.

4If the intended recipient refuses to receive a Communication, the Communication shall be deemed to have been received on the fourth day after dispatch or on the day of the refusal where such date is verified.

5If a Party (other than the intended recipient) uses reason- able efforts to ascertain an Address for Communication but no Address for Communication can be identified, a Communication may be sent to the last-known Address for Communication. In this case, the Communication shall be deemed to have been received on the fourth day after dis- patch.

6If a Communication is deemed to have been received under Rule 5.5, any subsequent Communication may be made in accordance with Rule 5.5.

7If any Party relocates or makes any change to its Address for Communication, the Party shall promptly designate and notify the new Address for Communication to the JCAA, the arbitrators, and the other Parties.

Rule 6.  Arbitral Tribunal

1Arbitration under the Rules shall be conducted by an arbi- tral tribunal composed of one or more arbitrators who have been appointed under Rule 25 through 30, 33, 52, or 79.

2The arbitral tribunal shall be constituted on the date when all the arbitrators have been confirmed or appointed by the JCAA.

3If the arbitral tribunal is composed of more than one arbi- trator, the arbitrators shall agree on and appoint a presid- ing arbitrator of the arbitral tribunal.

Rule 7.  Decision of Arbitral Tribunal

1If there is more than one arbitrator, decisions of the arbitral tribunal, including the arbitral award, shall be made by a majority of votes of the arbitrators.

2If no decision is made by a majority of votes of the arbitra- tors, the presiding arbitrator shall make the decision.

3Procedural matters in arbitral proceedings may be decided by the presiding arbitrator alone, if the other members of the arbitral tribunal or all Parties so agree.

Rule 8. Secretariat

1Administrative work during the arbitral proceedings under the Rules shall be performed by the secretariat of the JCAA (the “Secretariat”).

2The Secretariat, at the request of the arbitral tribunal or either Party, shall make arrangements for recording, inter- preting, making a stenographic transcript of hearings, or providing a hearing room or other services necessary for conducting the arbitral proceedings.

Rule 9.  List of Arbitrators

The JCAA shall maintain a list of arbitrators for the sake  of convenience in appointing arbitrators.

Rule 10.  Representation and Assistance

A Party may be represented or assisted by any person of its choice in arbitral proceedings under the Rules.

Rule 11. Language

1Unless Parties have agreed on the language(s) to be used in the arbitral proceedings, the arbitral tribunal shall promptly determine such language(s) to be used in the arbitral proceedings. The arbitral tribunal, in so determin- ing, shall take into account the language of the contract containing the Arbitration Agreement, whether interpreting or translating will be required, and the cost thereof.

2The arbitral tribunal may request a Party to attach to any documentary evidence a translation into the language(s) to be used in the arbitral proceedings.

3Communications between the JCAA and the Parties or between the JCAA and the arbitrators shall be made  in

either English or Japanese.

Rule 12.  Period of Time

1In calculating a period of time under the Rules, the initial calendar day shall be excluded.

2Holidays and non-business days occurring during the run- ning of the period of time are included. If the last day of the period falls on a holiday or non-business day at the place of the recipient, the period shall be extended until the next following business day.

3The Parties, by agreement in writing and in accordance with Rule 3.2, may change any time limit under the Rules, except for the time limits under Rules 15.2, 18.1, 19.1, 20 and 70.7 and any time limits fixed by the arbitral tribunal or by the JCAA. In the event of such a change, the Parties shall promptly notify the JCAA and the arbitral tribunal thereof.

4The arbitral tribunal, if it considers it necessary, may change any time limit under the Rules (including a time limit fixed by the arbitral tribunal), except for the time limits under Rules 39.1, 56.4, 72.4 and 81.1 and any time limits fixed by the JCAA. In the event of such a change, the arbi- tral tribunal shall promptly notify the JCAA and the Parties thereof.

5The JCAA, if it considers it necessary, may fix or change any time limit concerning the arbitral proceedings under the Rules.

Rule 13.  Exclusion of Liability

Neither the arbitrators, nor the JCAA (including its direc- tors, officers, employees and other staff) shall be liable for any act or omission in connection with the arbitral proceedings unless such act or omission is shown to constitute willful mis- conduct or gross negligence.

CHAPTER II   Commencement of Arbitration

Rule 14.  Request for Arbitration

1To request the initiation of arbitral proceedings, the claim- ant shall submit in writing to the JCAA a request for arbi- tration (the “Request for Arbitration”) setting forth the following:

(1)a request that the dispute be referred to arbitration under the Rules;

(2)a reference to the Arbitration Agreement that is invoked (including any agreement about the number of arbitrators, the procedure for appointing arbitrators, the place of arbitration, and the language(s) of the arbitral proceedings);

(3)the full names and the street addresses of the Parties (if a Party is a legal entity or other association, the corporate name, street address and the name of the Party’s representative);

(4)the name and street address of counsel, if the claim- ant is represented;

(5)the contact details of the claimant or its counsel (e.g., designated address, telephone number, facsimile number and e-mail address);

(6)the relief and remedy sought;

(7)a summary of the dispute; and

(8)a statement of factual and legal grounds for the claim(s), and the manner and method of proof.

2The Request for Arbitration may set forth the following:

(1)the name, street address and other contact details of an arbitrator appointed by the claimant, if the Parties have agreed that the number of arbitrators is three;

(2)a statement about the number of arbitrators, the pro- cedure for appointing arbitrators, the place of arbitra- tion, or the language(s) of arbitration; or

(3)a statement about the governing law applicable to the substance of the dispute.

3A copy of the Arbitration Agreement shall be attached to the Request for Arbitration.

4A power of attorney shall be submitted with the Request for Arbitration, if claimant is represented by counsel.

5The claimant, when it submits a Request for Arbitration, shall pay the administrative fee under the Administrative Fee Regulations of the JCAA attached to the Rules. If the claimant fails to pay such administrative fee in full, the JCAA shall consider that no request for arbitration has been made.

6Arbitral proceedings shall be deemed to have commenced on the date on which the Request for Arbitration has been submitted to the JCAA.

Rule 15.  Single Arbitration for Multiple Claims

1The claimant may submit a single Request for  Arbitration

containing multiple claims (the “Single Arbitration for Multiple Claims”), if:

(1)all Parties have agreed in writing that all such claims shall be resolved together in a single arbitral pro- ceeding;

(2)all claims arise under the same Arbitration Agreement; or

(3)all claims arise between the same Parties, and

(a)the same or a similar question of fact or law arises from the claims;

(b)the dispute is referred by the Arbitration Agreement to arbitration under the Rules or at the JCAA; and

(c)the arbitral proceedings are capable of being conducted in a single proceeding with regard to the place of arbitration, the number of arbi- trators, language(s), and other issues gov- erned by the Arbitration Agreement under which the claims arise.

2An objection to the Single Arbitration for Multiple Claims shall be made in writing within four weeks from the respon- dent’s receipt of the notice of the Request for Arbitration. The arbitral tribunal shall make a determination on such objection under Rule 42.

Rule 16.  Notice of Request for Arbitration

1The JCAA, on having confirmed that the Request for Arbitration has been made in conformity with Rules 14.1 and 14.3 through 14.5, shall promptly notify the respon- dent thereof. A copy of the Request for Arbitration shall be attached to such notice.

2The JCAA, after appointing or confirming each arbitra- tor, shall promptly transmit a copy of the Request for Arbitration to each arbitrator.

Rule 17. Constitution of Arbitral Tribunal and Jurisdictional Objection

The JCAA may proceed to constitute the arbitral tribunal even if the respondent raises an objection about the exis- tence or validity of the Arbitration Agreement, or about a Single Arbitration for Multiple Claims. The arbitral tribunal, after being duly constituted, shall make a determination on any such objection under Rule 41.1 or 42.1.

Rule 18. Answer

1The respondent, within four weeks from its receipt of the notice of the Request for Arbitration, shall submit in writing to the JCAA an answer (the “Answer”) setting forth the following:

(1)the full names and the street addresses of the Parties (if a Party is a legal entity or other association, the corporate name, street address and the name of the Party’s representative);

(2)the name and street address of counsel, if the respondent is represented;

(3)the contact details of the respondent or its counsel (e.g., a designated address, telephone number, fac- simile number and e-mail address);

(4)a response to the relief and remedy sought;

(5)a summary of the dispute; and

(6)the admission or denial of the claimant’s statements, a statement of factual and legal grounds, and the manner and method of proof.

2The Answer may set forth the following:

(1)the name, street address and other contact details of an arbitrator appointed by the respondent, if the Parties have agreed that the number of arbitrators is three;

(2)a statement about the number of arbitrators, the pro- cedure for appointing arbitrators, the place of arbitra- tion, or the language(s) of arbitration; or

(3)a statement about the governing law applicable to the substance of the dispute.

3A power of attorney shall be submitted, if respondent is represented by counsel.

4The JCAA, on having received the Answer, shall promptly transmit a copy thereof to the other Party and each arbitra- tor.

Rule 19. Counterclaim

1The respondent, within four weeks from its receipt of the notice of the Request for Arbitration (or within two weeks if Rule 77 applies), may submit a counterclaim, if:

(1)all Parties have agreed in writing that the counter- claim shall be resolved together with all claims in a single arbitral proceeding;

(2)the claim and the counterclaim arise under the same Arbitration Agreement; or

(3)(a) the same or a similar question of fact or law arises from the claim and the counterclaim;

(b)the dispute is referred by the Arbitration Agreement to arbitration under the Rules or at the JCAA; and

(c)the arbitral proceedings are capable of being conducted in a single proceeding with regard to the place of arbitration, the number of arbi- trators, language(s), and other issues gov- erned by the Arbitration Agreement under which the claims arise.

2Rules 14, 15.2, 16 and 18 shall apply mutatis mutandis to the counterclaim.

Rule 20.  Set-off Defense

The respondent, within four weeks from its receipt of the notice of the Request for Arbitration (or within two weeks if Rule 77 applies), may submit a set-off defense in writing.

Rule 21.  Amendment to Claim

1The claimant (or the respondent having submitted a coun- terclaim) may amend its claim by submitting a request for amendment to the JCAA in writing, if:

(1)all Parties have agreed in writing that the amended claim shall be resolved together with other claims or counterclaims in a single arbitration proceeding;

(2)the original claim and the amended claim arise under the same Arbitration Agreement; or

(3)(a) the same or a similar question of fact or law arises from the original claim and the amend- ed claim;

(b)the dispute is referred by the Arbitration Agreement to arbitration under the Rules or at the JCAA; and

(c)the arbitral proceedings are capable of being conducted under a single proceeding with regard to the place of arbitration, the number of arbitrators, language(s), and other issues governed by the Arbitration Agreement under which the claims arise.

2After the arbitral tribunal is constituted, the claimant (or the respondent having submitted a counterclaim) shall obtain approval of the arbitral tribunal to amend its claim. The arbitral tribunal shall give the other Party an opportunity  to

comment before granting approval of an amendment.

3The arbitral tribunal may deny the amendment under Rule 21.2, if it considers it inappropriate in view of a likely sub- stantial delay in conducting the arbitral proceedings, a prejudicial effect on the other Party, or any other circum- stances. The arbitral tribunal shall promptly notify the Parties of its decision on approval or denial.

4Rules 14, 15.2 and 16 shall apply mutatis mutandis to the amended claim.

5Rule 18, 19 or 20 shall apply mutatis mutandis to an Answer, a counterclaim, or set-off defense in response to the amended claim.

Rule 22.  Number of Copies to be Submitted

1The number of hard copies to be submitted under Rules 14.1, 15.2, 18.1 (including, the application mutatis mutan- dis under Rules 19.2, 21.5 and 52.5), 20 and 21.1 shall be the sum of the number of arbitrators (three if not yet determined), and the number of other Parties, plus one. It shall be sufficient for each Party represented by counsel to submit one hard copy of a power of attorney to the JCAA.

2Rule 22.1 shall not apply to a submission by e-mail, fac- simile or any other electronic communication method. A Party, if requested, shall submit the number of hard copies that the JCAA or the arbitral tribunal designates.

Rule 23.  Withdrawal of Claim

1Before the constitution of the arbitral tribunal, the claimant may withdraw its claim by submitting a notice to the JCAA in writing (the “Notice of Withdrawal”) stating that the claimant withdraws the claim. The JCAA shall notify the respondent of the Notice of Withdrawal.

2After the constitution of the arbitral tribunal, the claim- ant may withdraw its claim by submitting a Notice of Withdrawal to the arbitral tribunal and obtaining its approv- al thereto.

3Upon the request for approval by the claimant under Rule 23.2, the arbitral tribunal, after giving the respondent an opportunity to comment, shall approve the withdrawal unless the respondent promptly objects thereto and the arbitral tribunal determines that the respondent has a legit- imate interest in resolving the dispute referred to the arbi- tral proceedings.

4The arbitral tribunal shall make a decision to terminate  the

arbitral proceedings if the arbitral tribunal approves the withdrawal of all the claims under Rule 23.3.

CHAPTER III Arbitrators and Arbitral Tribunal

Rule 24.  Impartiality and Independence of Arbitrators

1An arbitrator shall be, and remain at all times, impartial and independent.

2When a person is approached in connection with his or her possible appointment as an arbitrator, he or she shall fully disclose to that approaching person any circumstanc- es likely to give rise to justifiable doubts as to his or her impartiality or independence.

3When a person is appointed as an arbitrator, he or she shall promptly submit in writing to the Parties and the JCAA his or her undertaking to disclose any and all cir- cumstances likely to give rise to justifiable doubts as to his or her impartiality or independence, or to declare that there are no such circumstances (the “Declaration of Impartiality and Independence”).

4During the course of the arbitral proceedings, an arbitrator shall have an ongoing obligation to promptly disclose to the Parties and the JCAA in writing any and all such cir- cumstances likely to give rise to justifiable doubts as to his or her impartiality or independence, unless the arbitrator has already disclosed such circumstances.

Rule 25.  Appointment and Confirmation of Arbitrators

1Arbitrator(s) shall be appointed pursuant to the agreement of the Parties.

2If the Parties have not agreed on the appointment of arbitrator(s), the arbitrator(s) shall be appointed under Rules 26 through 30.

3The appointment of an arbitrator made by a Party, by Parties, or by arbitrators shall be effective only after con- firmation by the JCAA. The JCAA, after giving the Party or the Parties and the arbitrator(s) an opportunity to com- ment, may refuse to confirm the appointment of an arbitra- tor if the JCAA finds that the appointment is clearly inap- propriate. Upon confirming the appointment of the arbitra- tor, the JCAA shall promptly notify such confirmation to the Parties and the Arbitrator(s).

4If the appointment of an arbitrator is not confirmed    by

the JCAA, the Party, the Parties, or the arbitrators that appointed the arbitrator shall appoint another arbitrator within the period fixed by the JCAA.

Rule 26.  Number of Arbitrators

1If the Parties fail to notify the JCAA in writing of their agreement about the number of arbitrators within four weeks from the respondent’s receipt of the notice of the Request for Arbitration, such number shall be one.

2Either Party, within four weeks from the respondent’s receipt of the notice of the Request for Arbitration, may request the JCAA in writing that such number shall be three. Such number shall be three, if the JCAA considers the request appropriate, taking into account the amount in dispute, the complexity of the case and other relevant cir- cumstances.

3The JCAA shall promptly notify the number of arbitrators to the Parties when it is fixed.

Rule 27.  Appointment of Arbitrator - Sole Arbitrator

1If the Parties have agreed that there shall be only one arbi- trator, the Parties shall agree on and appoint such arbitra- tor, and notify the JCAA of such appointment under Rule 30 within two weeks from the respondent’s receipt of the notice of the Request for Arbitration.

2If it is determined that there shall be one arbitrator under Rule 26.1, the Parties shall agree on and appoint such arbitrator, and notify the JCAA of such appointment under Rule 30 within two weeks from the time limit under Rule 26.1.

3If the Parties fail to notify the JCAA of such appointment under Rule 30 within the time limit under Rule 27.1 or 27.2, the JCAA shall appoint an arbitrator.

4In case the JCAA appoints an arbitrator under Rule 27.3 and a Party requests that the arbitrator be a person of  a different nationality from that of any of the Parties, the JCAA shall respect such request.

Rule 28.  Appointment of Arbitrators - Three Arbitrators

1If the Parties have agreed that the number of arbitrators shall be three, each Party shall appoint one arbitrator and notify the JCAA of such appointment under Rule 30 within three weeks from the respondent’s receipt of the notice  of

the Request for Arbitration.

2If the JCAA determines that the number of arbitrators shall be three under Rule 26.2, each Party shall appoint one arbitrator and notify the JCAA of such appointment under Rule 30 within three weeks from the Party’s receipt of the notice of the determination by the JCAA under Rule 26.2.

3If either Party fails to notify the JCAA of such appointment under Rule 30 within the time limit under Rule 28.1 or 28.2, the JCAA shall appoint such arbitrator.

4The two arbitrators shall agree on and appoint the third arbitrator, and notify the JCAA of such appointment under Rule 30 within three weeks from the two arbitrators’ receipt of the notice that the JCAA has confirmed or appointed the two arbitrators.

5If the two arbitrators fail to notify the JCAA of such appoint- ment of the third arbitrator under Rule 30 within the time limit under Rule 28.4, the JCAA shall appoint such arbitra- tor.

6If the JCAA appoints an arbitrator under Rule 28.5,  Rule

27.4 shall apply mutatis mutandis.

Rule 29.  Appointment of Arbitrators

- Three Arbitrators in Multi-Party Arbitration

1If there is more than one claimant or respondent and the number of arbitrators shall be three, the arbitrators shall be appointed under this Rule 29.

2If the Parties have agreed that the number of arbitrators shall be three, the claimant(s) and the respondent(s) shall appoint one arbitrator each and notify the JCAA of such appointment under Rule 30 within three weeks from the respondent(s)’ receipt of the notice of the Request for Arbitration.

3If the JCAA determines that the number of arbitrators shall be three under Rule 26.2, the claimant(s) and the respondent(s) shall appoint one arbitrator each and notify the JCAA of such appointment under Rule 30 within three weeks from the Parties’ receipt of the notice of the deter- mination by the JCAA under Rule 26.2.

4The two arbitrators appointed by the claimant(s) and the respondent(s) shall agree on and appoint the third arbitra- tor, and notify the JCAA of such appointment under Rule 30 within three weeks from the two arbitrators’ receipt of the notice that the JCAA has confirmed the two arbitrators.

5If the two arbitrators fail to notify the JCAA of such appoint- ment of the third arbitrator under Rule 30 within the  time

limit under Rule 29.4, the JCAA shall appoint such arbitra- tor.

6If the JCAA appoints an arbitrator under Rule 29.5,  Rule

27.4 shall apply mutatis mutandis.

7If either the claimant(s) or the respondent(s), or both of them fail to notify the JCAA of such appointment under Rule 30 within the time limit under Rule 29.2 or 29.3, the JCAA shall appoint all three arbitrators. In such case, the JCAA may appoint the arbitrator already appointed by the claimant(s) or the respondent(s) as one of the three arbi- trators, if no Party raises an objection.

Rule 30.  Notice of Appointment of Arbitrator

1On appointment of an arbitrator by a Party, by Parties or by the arbitrators, such Party, Parties, or arbitrators shall promptly submit in writing to the JCAA for its confirmation:

(a)a notice of appointment of the arbitrator setting forth the appointed arbitrator’s name, occupation, street address, and contact details (e.g., designated address, telephone number, facsimile number and e-mail address) (“Notice of Appointment”);

(b)the arbitrator’s acceptance of appointment; and

(c)the arbitrator’s Declaration of Impartiality and Independence.

The JCAA shall promptly transmit a copy thereof to the other Party (or Parties) and the arbitrator(s).

2On appointment of an arbitrator by the JCAA, the JCAA shall promptly transmit to the Parties and the arbitrator(s) the Notice of Appointment of such arbitrator, together with a copy of the arbitrator’s acceptance of appointment and Declaration of Impartiality and Independence.

Rule 31.  Challenge to Arbitrators

1A Party may challenge an arbitrator if circumstances give rise to justifiable doubts as to the arbitrator’s impartiality or independence.

2A Party may challenge an arbitrator it has appointed, or whose appointment the Party has participated in by way of recommendation or any similar acts, only for reasons of which the Party becomes aware after the appointment has been made.

3A Party that intends to challenge an arbitrator shall sub- mit in writing to the JCAA a request for challenge (the “Request for Challenge”) within two weeks from   the

date of its receipt of the notice by the JCAA confirming the appointment of the arbitrator (the Notice of Appointment of the arbitrator, if the arbitrator is appointed by the JCAA) or the date when it became aware of any circumstance under Rule 31.1, whichever comes later.

4On receipt of the Request for Challenge, the JCAA shall promptly notify the other Party and the challenged arbitra- tor, supplying them with a copy thereof.

5The JCAA shall make a decision on the challenge, after giving the other Party and the challenged arbitrator an opportunity to comment. The JCAA may make the deci- sion without giving reasons.

Rule 32.  Removal of Arbitrators

The JCAA, at the written request of either Party or on its own motion, may remove any arbitrator who fails to perform his or her duties or unduly delays in the performance of his or her duties, or is de jure or de facto unable to perform his or her duties. In such cases, the JCAA shall give the Parties and the challenged arbitrator an opportunity to comment.

Rule 33.  Appointment of Substitute Arbitrator

1If an arbitrator ceases to perform his or her duties before the termination of the arbitral proceedings because of resignation, challenge, removal or death, the JCAA shall promptly notify the Parties and the remaining arbitrators.

2If the arbitrator who has ceased to perform his or her duties was appointed by a Party, by Parties or by the remaining arbitrators, such Party, Parties or arbitrators shall appoint a substitute arbitrator and notify the JCAA of such appointment under Rule 30 within three weeks from their receipt of the notice under Rule 33.1, unless otherwise agreed by the Parties. If such Party, Parties or remaining arbitrators fail to do so, the JCAA shall appoint a substitute arbitrator.

3If the arbitrator who ceases to perform his or her duties was appointed by the JCAA, the JCAA shall appoint a sub- stitute arbitrator, unless otherwise agreed by the Parties.

Rule 34. Vacancy after Closing of Arbitral Proceedings

Notwithstanding Rule 33, where an arbitrator ceases to perform his or her duties after the closing of the arbitral pro- ceedings but before an arbitral award is rendered, the arbitral

tribunal may render an arbitral award without a substitute arbi- trator being appointed, if the JCAA, after giving the remaining arbitrators and the Parties an opportunity to comment, con- siders it appropriate.

Rule 35. Repetition of Arbitral Proceedings by Substitute Arbitrator

If a substitute arbitrator is appointed under Rule 33, the arbitral tribunal, after giving the Parties an opportunity to com- ment, shall decide whether or to what extent arbitral proceed- ings already conducted should be repeated.

CHAPTER IV   Arbitral Proceedings

Section 1. Conduct of Arbitral Proceedings

Rule 36.  Place of Arbitration

1Unless otherwise agreed by the Parties, the place of arbi- tration shall be the city of the office of the JCAA to which the claimant submitted the Request for Arbitration under Rule 14.1.

2The arbitral tribunal may conduct the arbitral proceedings at any place it considers appropriate, unless otherwise agreed by the Parties.

Rule 37.  Conduct of Arbitral Proceedings

1The arbitral tribunal shall direct and control the arbitral pro- ceedings, including hearings.

2The arbitral tribunal shall treat the Parties equally. The arbitral tribunal shall give each Party a sufficient opportu- nity to state and prove its case and to present a defense against the other Party’s case.

3The arbitral tribunal shall use reasonable efforts to resolve the dispute expeditiously.

4A Party shall transmit any material submitted in writing in the arbitral proceedings to the arbitrator(s), the other Party and the JCAA; and the arbitral tribunal shall transmit to the JCAA a copy of any Communications in writing to the Parties.

Rule 38. Confidentiality

1Arbitral proceedings shall be held in private, and all records thereof shall be closed to the public.

2The arbitrators, the JCAA (including its directors, officers, employees, and other staff), the Parties, their counsel and assistants, and other persons involved in the arbitral proceedings shall not disclose facts related to or learned through the arbitral proceedings except where disclosure is required by law or in court proceedings, or based on any other justifiable grounds.

Rule 39. Time Limit of Arbitral Award and Procedural Schedule

1The arbitral tribunal shall use reasonable efforts to render an arbitral award within six months from the date when it is constituted.

2To implement Rule 39.1, the arbitral tribunal shall consult with the Parties, and make a schedule of the arbitral pro- ceedings in writing (the “Procedural Schedule”) to the extent necessary and feasible as early as practicable. The consultation shall be conducted through preliminary meet- ings, telephone conferences, exchanges of documents or any other appropriate methods determined by the arbitral tribunal. The arbitral tribunal shall send the Procedural Schedule to the Parties and the JCAA.

3The arbitral tribunal may amend the Procedural Schedule during the course of the arbitral proceedings after giving the Parties an opportunity to comment.

Rule 40.  Issues and Terms of Reference

1At a stage as early as practicable, the arbitral tribunal shall use reasonable efforts to identify the issues to be deter- mined upon consultation with the Parties.

2If the arbitral tribunal considers it appropriate for promot- ing efficient arbitral proceedings, the arbitral tribunal, after giving the Parties an opportunity to comment, may prepare terms of reference setting forth the matters referred to the arbitral tribunal and a list of major issues.

Rule 41. Competence of Arbitral Tribunal to Determine Jurisdiction

1The arbitral tribunal may make a determination on  any

objection as to the existence or validity of an Arbitration Agreement and any other matters regarding its own juris- diction.

2The arbitral tribunal shall make a decision to terminate the arbitral proceedings if it finds that it has no jurisdiction.

Rule 42.  Decision on Separate Proceedings

1The arbitral tribunal may make a determination on any objection as to a Single Arbitration for Multiple Claims.

2If the arbitral tribunal finds that the requirements under Rule 15.1 are not satisfied, the arbitral tribunal shall make a decision to separate the arbitral proceedings (the “Decision on Separate Proceedings”) and notify the Parties thereof. The arbitral tribunal shall not make a Decision on Separate Proceedings if the respondent has not raised an objection within the time limit under Rule 15.2.

3Upon the Decision on Separate Proceedings, the mandate of the arbitral tribunal shall be terminated, and the arbi- tral proceedings shall be conducted separately as to each separated claim(s). The mandate of the arbitral tribunal, however, shall not be terminated as to:

(a)any claim(s) against the respondent that has raised no objection within the time limit under Rule 15.2; or

(b)any claim(s) to which the respondent has requested continuation of the mandate of the arbitral tribunal within one week from the respondent’s receipt of the notice of the Decision on Separate Proceedings.

4If the arbitral proceedings are to be conducted separate- ly under Rule 42.3, calculation of periods of time based on the respondent’s receipt of the notice of the Request for Arbitration shall be determined based on the respon- dent’s receipt of the notice of the Decision on Separate Proceedings.

5. Rules 61.2, 61.4, 61.5, 61.6 and 63 through 65 shall apply mutatis mutandis to the Decision on Separate Proceedings.

6.Rules 42.1 through 42.5 shall apply mutatis mutandis, if:

(a)the counterclaim does not satisfy the requirements under Rule 19.1;

(b)(i) the amendment of the claim does not satisfy the requirements under Rule 21.1, or

(ii)the application for approval of an amendment is denied under Rule 21.3; or

(c)(i) the joinder does not satisfy the requirements under

Rule 52.1, or

(ii)the joinder is denied under Rule 52.4.

7.Notwithstanding Rule 42.6, the mandate of the arbitral tri- bunal shall not be terminated as to:

(1)any claim(s) pending before the counterclaim or the amendment of the claim was filed; or

(2)any claim(s) pending before the joinder that was applied after the constitution of the arbitral tribunal.

Rule 43.  Interim Decision

The arbitral tribunal, if it considers it appropriate, may make an interim decision on a dispute arising during the course of the arbitral proceedings. Rules 61.2 and 62 shall apply mutatis mutandis to such decision. The arbitral tribunal may omit the statement of reasons.

Rule 44. Hearings

The arbitral tribunal shall decide whether to hold hearings for oral arguments or presentation of evidence, or whether the arbitral proceedings shall be conducted based only on documents and other materials. Notwithstanding the previous sentence, unless the Parties have agreed in writing that there will not be hearings, the arbitral tribunal shall hold such hear- ings at an appropriate stage of the arbitral proceedings, if so requested by a Party.

Rule 45.  Date and Place of Hearings

1The arbitral tribunal, after giving the Parties an opportunity to comment, shall fix the date and place of hearings. If hearings last more than one day, the arbitral tribunal shall hold hearings on consecutive days, to the extent feasible.

2If the arbitral tribunal has fixed the date and place of hear- ings, it shall promptly notify the Parties of the date and place of hearings.

3The arbitral tribunal shall change the date of hearings at the joint request of the Parties. The arbitral tribunal may change the date at the request of one Party, if it finds a compelling reason.

4Any request under Rule 45.3 shall be made in writing, unless made at a hearing or during an oral consultation under Rule 39.2.

Rule 46.  Appearance by Parties at Hearings

1The arbitral tribunal, in principle, shall hold hearings in the presence of all the Parties.

2The arbitral tribunal may hold hearings even if any or all of the Parties fails to appear.

Rule 47.  Submission of Written Statements

1Within the time limits under the Rules or the time lim-  its fixed by the arbitral tribunal, each Party shall submit in writing to the arbitral tribunal one or more statements setting forth such Party’s case on the facts and law (the “Written Statements”).

2The arbitral tribunal shall acknowledge receipt of the Written Statements submitted by a Party.

Rule 48.  Default of a Party

1If one Party fails to submit a Written Statement or the Answer within the time limits under the Rules or the time limits fixed by the arbitral tribunal, the arbitral tribunal shall continue the arbitral proceedings without treating such failure in itself as an admission of the other Party’s state- ments.

2If one Party, without sufficient cause, fails to appear at a hearing or to produce documentary evidence, the arbitral tribunal may continue the arbitral proceedings and make the arbitral award based on the evidence before it.

Rule 49.  Waiver of Right to Object

A Party who knows that any of the Rules has not been complied with but fails to promptly object to such non-compli- ance, shall be deemed to have waived its right to object.

Rule 50. Evidence

1Each Party shall have the burden of proving the facts relied on to support its claims or defenses.

2The arbitral tribunal, on its own motion, may examine evi- dence not presented by any Party, when the arbitral tribu- nal considers it necessary.

3The arbitral tribunal may examine evidence outside the hearings. The arbitral tribunal, however, shall give the Parties an opportunity to submit statements in writing  or

orally regarding such evidence.

4The arbitral tribunal, at the written request of a Party or on its own motion, may order any Party to produce docu- ments in its possession that the arbitral tribunal considers necessary to examine after giving the Party in posses- sion an opportunity to comment, unless the arbitral tribunal finds reasonable grounds for the Party in possession to refuse the production.

Rule 51.  Expert Appointed by Arbitral Tribunal

1The arbitral tribunal, after giving the Parties an opportunity to comment, may appoint one or more experts to advise it with respect to any matters to be determined and to report, in writing or orally, such expert(s)’ findings to the arbitral tribunal.

2If a Party so requests, the arbitral tribunal, after delivery of the report under Rule 51.1, shall give the Parties an opportunity to put questions to the expert(s) in a hear- ing. The arbitral tribunal, if it considers it necessary, may give the Parties an opportunity to submit their own expert reports.

Rule 52. Third Party Joinder

1A third party may join in the arbitral proceedings as a claimant or a Party may request a third party to join in the arbitral proceedings as a respondent, if:

(1)all Parties and the third party have agreed in writing about the joinder; or

(2)all claims are made under the same Arbitration Agreement; provided, however, the third party’s con- sent in writing to such joinder is necessary when the third party is requested to join as respondent after the constitution of the arbitral tribunal.

2If the third party joins in the arbitral proceedings before the arbitral tribunal is constituted, the arbitrators shall be appointed under Rules 25 through 27, 29 and 30. Calculation of periods of time under Rules 26, 27.1  and

29.2 shall be determined based on the date that the respondent against whom the claim is made in the appli- cation for joinder receives the notice of the application for joinder.

3If the third party joins in the arbitral proceedings after the arbitral tribunal is constituted, the arbitral tribunal shall remain the same.

4Even when the requirement under Rule 52.1 is satisfied, the arbitral tribunal may deny joinder if it finds that such joinder will delay the arbitral proceedings or it finds any other reasonable grounds.

5Rules 14, 15.2 and 16.1 shall apply mutatis mutandis to an application for joinder; provided that “the respondent” under Rules 15.2, 16.1 and 42.3 shall be read as “the Party other than the Party that has submitted an applica- tion for joinder, and the third party who has been request- ed to join as respondent.”

6Rule 18, 19 or 20 shall apply mutatis mutandis to an answer, counterclaim or set-off defense to the claim made in the application for joinder.

Rule 53. Consolidation

The arbitral tribunal may, at the written request of a Party and when it finds it necessary, consolidate and hear the pend- ing claim(s) with the other claim(s) (as to which no arbitral tribunal has been constituted), if:

(1)all Parties (including the parties to the other claim(s)) have agreed in writing;

(2)the pending claim(s) and the claim(s) to be consoli- dated arise under the same Arbitration Agreement; provided, however, the written consent to such con- solidation by the party to the other claim(s) is nec- essary when the party has not been a Party to the pending claim(s); or

(3)both the pending claim(s) and the other claim(s) to be consolidated arise between the same Parties, and

(a)the same or a similar question of fact or law arises from the claims;

(b)the dispute is referred by the Arbitration Agreement to arbitration under the Rules or at the JCAA; and

(c)the arbitral proceedings are capable of being conducted in a single proceeding with regard to the place of arbitration, the number of arbi- trators, language(s), and other issues gov- erned by the Arbitration Agreements under which the claims arise.

Rule 54. Mediation

1The Parties, at any time during the course of the arbitral proceedings, may agree in writing to refer the dispute  to

mediation proceedings under the International Commercial Mediation Rules of the JCAA (the “ICMR”). No arbitrator assigned to the dispute shall be appointed as mediator, except if appointed under Rule 55.1.

2If the Parties enter into an agreement under Rule 54.1, the arbitral tribunal, at the request of either Party, shall stay the arbitral proceedings.

3All offers, admissions, or other statements by the Parties, or recommendations by the mediator, made during the course of the mediation proceedings shall be inadmissible as evidence in the arbitral proceedings unless otherwise agreed by the Parties.

4If the mediation proceedings are terminated under Rule 10.2(3), 10.2(4), or 10.2(5) of the ICMR, the arbitral tribu- nal, at the request of either Party, shall resume the arbitral proceedings.

Rule 55. Special Rules for the ICMR if an Arbitrator serves as Mediator

1Notwithstanding Rule 54.1, the Parties may agree in writ- ing to appoint an arbitrator assigned to the same dispute as a mediator, and refer the dispute to mediation proceed- ings under the ICMR. If the Parties do so, the Parties shall not challenge the arbitrator based on the fact that the arbi- trator is serving or has served as a mediator.

2Notwithstanding Rule 9.5 of the ICMR, an arbitrator who serves as mediator in regard to the same dispute shall not consult separately with any of the Parties orally or in writing, without the agreement of the Parties in writing. The arbitrator shall disclose to all other Parties, in each instance, the fact that such consultation has taken place, excluding the contents thereof.

3The Parties shall submit to the JCAA a copy of the agree- ment under Rule 55.1, when they refer the dispute to mediation proceedings under Rule 55.1.

4The mediator’s remuneration under Rule 55 and the administrative fee for the mediation proceedings shall be calculated as follows:

(1)the administrative fee for the mediation proceedings are not required to be paid; and

(2)the Mediation Hours shall be deemed to be the arbi- trator’s Arbitration Hours in calculating the arbitrator’s remuneration.

5The ICMR, except Chapter II, and the Mediation Cost Regulation shall apply to the mediation under Rule 55.

Rule 56. Closing and Reopening of Arbitral Proceedings

1The arbitral tribunal shall close the arbitral proceedings upon determining that the Parties have been given suffi- cient opportunity to state and prove their respective claims and present defenses thereto and that the arbitral tribunal is able to render an arbitral award.

2The arbitral tribunal may close the arbitral proceedings as to certain claims, upon determining that the requirements under Rule 56.1 as to such claims have been satisfied.

3Before closing the arbitral proceedings under Rule 56.1 or 56.2, the arbitral tribunal shall provide the Parties with notice thereof in advance.

4The arbitral tribunal, if it considers it necessary, may reopen the arbitral proceedings. The arbitral tribunal shall not, in principle, reopen the arbitral proceedings after the lapse of three weeks from the date of closing.

Rule 57. Termination of Arbitral Proceedings

1The arbitral proceedings shall terminate upon the render- ing of an arbitral award, or upon a decision to terminate the arbitral proceedings.

2The arbitral tribunal shall make a decision to terminate the arbitral proceedings, if:

(1)the arbitral tribunal approves the withdrawal of all the claim under Rule 23.3;

(2)the arbitral tribunal finds that it has no jurisdiction under Rule 41.2; or

(3)the arbitral tribunal finds that the continuation of the arbitral proceedings has become unnecessary or impossible.

3The mandate of the arbitral tribunal terminates upon ter- mination of the arbitral proceedings, subject to Rules 63 through 65.

4Rules 61.2, 61.4, 61.5, 61.6 and 62 shall apply mutatis mutandis to the decision to terminate the arbitral proceedings.

Section 2. Arbitral Award

Rule 58. Final Award, Partial Award and Award by Consent

1The arbitral tribunal shall render an arbitral award on all claims presented in the arbitral proceedings.

2Notwithstanding Rule 58.1, if the arbitral tribunal has closed the arbitral proceedings as to certain claims under Rule 56.2, it may render a partial award on such claims.

3If the Parties agree on a settlement of the dispute during the course of the arbitral proceedings, the arbitral tribunal, upon the request of the Parties, may record the settlement in the form of an arbitral award on agreed terms.

Rule 59.  Effect of Arbitral Award

An arbitral award shall be final and binding on the Parties.

Rule 60.  Rules Applicable to Substance of Dispute

1The arbitral tribunal shall decide the dispute in accordance with such rules of law agreed by the Parties to be appli- cable to the substance of the dispute.

2Failing such agreement by the Parties under Rule 60.1, the arbitral tribunal shall apply the substantive law of the country or state to which the dispute referred to the arbitral proceedings is most closely connected.

3Notwithstanding Rules 60.1 and 60.2, the arbitral tribu- nal shall decide ex aequo et bono only if all Parties have expressly requested it to do so.

Rule 61.  Arbitral Award - Number of Copies and Format

1The arbitral tribunal shall make a number of hard copies of the arbitral award sufficient to provide one hard copy for each of the Parties and one hard copy for the JCAA.

2The arbitral award shall state the following:

(1)the full names and street addresses of the Parties (if a Party is a legal entity or other association, the corporate name, street address and the name of the Party’s representative);

(2)the name and street address of counsel, if a Party is represented;

(3)the determination on the relief and remedy sought;

(4)the reasons upon which the arbitral award is based;

(5)the date of the arbitral award; and

(6)the place of arbitration.

3If the Parties have agreed that no reasons are to be given, or if the arbitral tribunal records a settlement in the form of an arbitral award on agreed terms under Rule 58.3, the reasons shall be omitted. The arbitral tribunal, how- ever, shall state the reason for such omission in the arbitral

award.

4The arbitral tribunal shall determine in the arbitral award the total amount of costs and the allocation thereof under Rule 83.1. The arbitral tribunal, however, is not required to do so in a partial award.

5If one Party has to repay an amount to the other Party based on the allocation under Rule 61.4, the arbitral tribu- nal shall order that that Party shall repay such amount to the other Party in the arbitral award.

6The arbitrator(s) shall sign the arbitral award. If there is more than one arbitrator and an arbitrator fails to sign the arbitral award, the signatures of the majority of the arbitral tribunal shall suffice. The reason for such failure to sign shall be stated in the arbitral award.

Rule 62.  Notice of Arbitral Award

1The JCAA shall send the arbitral award to each Party after the Parties have fully paid to the JCAA the amount due, consisting of the arbitrator(s)’ remuneration and expens- es, and other reasonable expenses incurred with respect to the arbitral proceedings as required to be paid to the JCAA.

2The JCAA shall keep one original of the arbitral award.

Rule 63.  Correction of Arbitral Award

1The arbitral tribunal, upon the written request of a Party, or on its own motion, may correct any computational, clerical, or any other errors or omissions of a similar nature.

2A Party, within four weeks from its receipt of the arbitral award, may request the arbitral tribunal to make a correc- tion of the arbitral award.

Rule 64.  Interpretation of Arbitral Award

A Party, within four weeks from its receipt of the arbitral award, may request in writing the arbitral tribunal to give an interpretation of a specific point or part of the arbitral award.

Rule 65.  Additional Arbitral Award

A Party, within four weeks from its receipt of the arbitral award, may request in writing the arbitral tribunal to make an additional arbitral award as to claims presented in the arbitral proceedings but omitted from the arbitral award.

CHAPTER V Interim Measures by Arbitral

Tribunal or by Emergency Arbitrator

Section 1. Interim Measures by Arbitral Tribunal

Rule 66.  Interim Measures

1A Party may apply in writing to the arbitral tribunal for the grant of interim measures against the other Party (“Interim Measures”). Interim Measures are, for exam- ple, orders to:

(1)maintain or restore the status quo;

(2)take action that would prevent, or refrain from tak- ing action that is likely to cause, current or imminent harm or prejudice to the arbitral proceedings them- selves;

(3)provide a means of preserving assets out of which a subsequent arbitral award may be satisfied; or

(4)preserve evidence that may be relevant and material to the resolution of the dispute.

2The Party requesting Interim Measures under Rule 66.1(1), (2) and (3) shall satisfy the arbitral tribunal that:

(1)harm not adequately reparable by an arbitral award of damages is likely to result if the measure is not ordered, and such harm substantially outweighs the harm that is likely to result to the Party against whom the measure is directed if the measure is granted; and

(2)there is a reasonable possibility that the requesting Party will succeed on the merits of the claim.

3The arbitral tribunal may order Interim Measures under Rule 66.1(4) to the extent it considers appropriate after taking into account the standards under Rule 66.2.

4The arbitral tribunal, before granting Interim Measures, shall give each Party a reasonable opportunity to com- ment.

5Rules 61.2, 62, and 63 shall apply mutatis mutandis to the Interim Measures.

6The Parties shall be bound by, and carry out, the Interim Measures ordered by the arbitral tribunal.

Rule 67.  Provision of Security

The arbitral tribunal may require the Party requesting Interim Measures to provide appropriate security in connec- tion with the Interim Measures.

Rule 68. Disclosure

A Party shall disclose to the arbitral tribunal any material change in the circumstances on which the application or the arbitral tribunal’s determination on the Interim Measures is based.

Rule 69. Modification, Suspension, Termination

The arbitral tribunal, on the written application of either Party, or on its own motion in exceptional circumstances, may modify, suspend or terminate Interim Measures after giving the Parties an opportunity to comment. Rule 66.5 shall apply mutatis mutandis to such modification, suspension or termi- nation.

Section 2. Interim Measures by

Emergency Arbitrator

Rule 70.  Application for Emergency Measures

1Before the arbitral tribunal is constituted, or when any arbi- trator has ceased to perform his or her duties, a Party may apply in writing to the JCAA for Interim Measures by an emergency arbitrator (“Emergency Measures”).

2The application for Emergency Measures shall set forth the following:

(1)a statement that the Party is applying for Emergency Measures, and the measures sought;

(2)a reference to the Arbitration Agreement that is invoked;

(3)the full names and the street addresses of the Parties (if a Party is a legal entity or other association, the corporate name, street address and the name of the Party’s representative);

(4)the name and street address of counsel, if the appli- cant is represented;

(5)the contact details of the applicant or its counsel (e.g., designated address, telephone number,  fac-

simile number and e-mail address);

(6)a summary of the dispute; and

(7)a statement of facts supporting the necessity of granting the Emergency Measures.

3A copy of the Arbitration Agreement shall be attached to the application for Emergency Measures.

4A power of attorney shall be attached to the application for Emergency Measures, if the applicant is represented by counsel.

5The applicant, when it submits an application for Emergency Measures, shall pay: the  administra-  tive fee and the deposit under the Administrative Fee Regulations of the JCAA; and the emergency arbitra- tor’s remuneration under the Regulations for Arbitrator’s Remuneration of the JCAA. If the applicant fails to pay such amount in full, the JCAA shall consider that no application for Emergency Measures has been made.

6Rules 16 and 22 shall apply mutatis mutandis to the application for Emergency Measures.

7If the JCAA has received no Request for Arbitration before or at the time of receiving the application for Emergency Measures, the applicant shall submit the Request for Arbitration within ten days from the date of the application. If the applicant fails to do so, the JCAA shall consider that no application for Emergency Measures has been made.

Rule 71.  Appointment of Emergency Arbitrator

1The JCAA shall appoint a sole emergency arbitrator.

2An emergency arbitrator shall be, and remain at all times, impartial and independent. No person shall be appointed as emergency arbitrator if there are any cir- cumstances likely to give rise to doubts as to his or her impartiality or independence.

3The emergency arbitrator shall promptly submit to the JCAA the Declaration of Impartiality and Independence stating that no circumstances exist that likely give rise to doubts as to his or her impartiality or independence.

4The JCAA shall use reasonable efforts to appoint an emergency arbitrator within two business days from its receipt of the application for Emergency Measures, if:

(a)it confirms that the application for Emergency Measures has been made in conformity with Rules

70.1 through 70.6; and

(b)it considers it appropriate to appoint an emergen- cy arbitrator.

5On  appointment of  an  emergency arbitrator by  the

JCAA, the JCAA shall promptly transmit to the Parties the Notice of Appointment of the emergency arbitra- tor, together with a copy of the emergency arbitra- tor’s acceptance of appointment in writing and of the Declaration of Impartiality and Independence.

6A Party may challenge the emergency arbitrator under Rule 31. The Party shall submit the Request for Challenge to the JCAA within two days from the date of its receipt of the Notice of Appointment or from the date when the Party became aware of any circumstances that give rise to doubts as to his or her impartiality or independence, whichever comes later.

7On or after the termination of the mandate of the emer- gency arbitrator, no Party may challenge the emergency arbitrator, and the pending challenge procedure shall be terminated.

Rule 72.  Mandate of Emergency Arbitrator

1The emergency arbitrator may order, modify, suspend or terminate Emergency Measures in accordance with Rules 66 through 69.

2The emergency arbitrator shall make a procedural schedule for Emergency Measures immediately after his or her appointment.

3The emergency arbitrator, if he or she considers a hear- ing necessary in order to make a determination on the Emergency Measures, may hold such hearing for one day only.

4The emergency arbitrator shall make a decision on the Emergency Measures within two weeks from his or her appointment. The emergency arbitrator shall not extend this time limit; provided, however, the JCAA may extend such time limit, if all Parties so agree or if the JCAA finds that the case is sufficiently complex or that any other compelling reason exists.

5The Parties shall be bound by, and carry out, the Emergency Measures ordered by the emergency arbi- trator. The Emergency Measures shall be deemed to be Interim Measures granted by the arbitral tribunal when it is constituted or when a substitute arbitrator is confirmed or appointed by the JCAA. The Emergency Measures shall remain in effect until the arbitral tri- bunal modify, suspend or terminate such Emergency Measures under Rule 73.2.

6The Emergency Measures shall no longer be effective, if:

(1)the arbitral tribunal is not constituted or a  substi-

tute arbitrator is not confirmed or appointed by the JCAA within three months from the grant of the Emergency Measures;

(2)the arbitral proceedings are terminated under Rule 57.1; or

(3)the JCAA considers that no application for Emergency Measures has been made under Rule 70.7.

7The mandate of the emergency arbitrator shall be termi- nated on the constitution of the Arbitral Tribunal or on the confirmation or appointment of the substitute arbitrator by the JCAA. The JCAA may extend the mandate, if it con- siders it necessary.

8The emergency arbitrator shall not be appointed as an arbitrator for the same dispute, unless otherwise agreed in writing by the Parties.

Rule 73. Approval, Modification, Suspension and Termination by Arbitral Tribunal

1No determination on Emergency Measures shall be bind- ing on the arbitral tribunal.

2The arbitral tribunal may approve, modify, suspend or ter- minate the Emergency Measures in whole or in part.

Rule 74.  Application Mutatis Mutandis

The other Chapters of the Rules shall apply mutatis mutandis to the emergency arbitrator and the Emergency Measures unless they are contrary to the nature thereof.

CHAPTER VI   Expedited Procedures

Rule 75. Scope

1Expedited procedures shall be conducted if a Party notifies the JCAA in writing of the agreement by the Parties to sub- mit the dispute to expedited procedures within two weeks from the respondent’s receipt of the notice of the Request for Arbitration.

2Expedited procedures shall be conducted where the amount or economic value of the claimant’s claim(s) is not more than ¥20,000,000; unless, within two weeks from the respondent’s receipt of the notice of the Request for Arbitration:

(1)a Party notifies the JCAA in writing of the agreement by the Parties not to submit their dispute to expedited procedures;

(2)a Party notifies the JCAA in writing of the agreement by the Parties that there will be more than one arbi- trator; or

(3)a counterclaim or set-off defense is submitted and the amount or economic value of such submission exceeds ¥20,000,000 (except when the Parties agreed in writing to submit such counterclaim(s) or set-off defense(s) to expedited procedures).

3The amount of any interest, rent, damage, penalty, expense, or cost that is incidental to the principal claim shall be excluded when calculating the amount or the eco- nomic value of the claim, counterclaim, or set-off defense under Rule 75.2.

4Where the economic value cannot be calculated, or its calculation is extremely difficult, or where there is a dispute between the Parties concerning such economic value, the economic value under Rule 75.2 shall be deemed to exceed ¥20,000,000.

5The JCAA shall promptly notify the Parties and the arbitra- tor on determining that expedited procedures shall be con- ducted.

Rule 76.  Applicable Rules of Expedited Procedures

1Expedited procedures shall be conducted under Rules 77 through 82.

2Matters not provided for in this Chapter VI shall be gov- erned mutatis mutandis by the other Chapters.

Rule 77. Time Limit of Counterclaim and Set-off Defense

If it is determined that expedited procedures shall be conducted, the respondent shall not submit counterclaim(s) under Rule 19 or set-off defense(s) under Rule 20. The counterclaim(s) or set-off defense(s) submitted by the respon- dent within two weeks from the  respondent’s receipt of  the notice of the Request for Arbitration, however, shall be allowed, if:

(1)the amount or economic value of the counterclaim(s) or set-off defense(s) does not exceed ¥20,000,000; or

(2)the amount or economic value of the counterclaim(s) or  set-off  defense(s)  exceeds  ¥20,000,000,  but

the Parties agreed in writing to submit such counterclaim(s) or set-off defense(s) to expedited procedures.

Rule 78. No Amendment to Claim, Counterclaim or Set-Off Defense

Neither the claimant nor the respondent shall amend or supplement its claims, counterclaims or set-off defenses.

Rule 79.  Appointment of Arbitrator

1Expedited procedures shall be conducted by a sole arbitra- tor.

2The Parties shall agree upon and appoint an arbitrator and notify the JCAA of such appointment under Rule 30 within two weeks from their receipt of the notice by the JCAA that expedited procedures shall be conducted.

3If the Parties fail to notify the JCAA under Rule 79.2, the JCAA shall appoint such arbitrator.

4In case the JCAA appoints an arbitrator under Rule 79.3, and a Party requests that such arbitrator be a person of a different nationality from that of any of the Parties, the JCAA shall respect such request.

5Rules 25 through 29 (except Rules 25.3 and 25.4) shall not apply to expedited procedures.

Rule 80.  One Day Hearing

A hearing shall not, in principle, last for more than one day. The arbitrator may schedule additional hearing days, if necessary.

Rule 81. Time Limit of Arbitral Award

1The arbitrator shall make an arbitral award within three months from his or her confirmation or appointment by the JCAA.

2The arbitrator shall not extend the time limit under  Rule

81.1.  The JCAA may extend such time limit under  Rule

81.1 if the JCAA finds that the case is sufficiently complex or that any other compelling reason exists.

Rule 82.  No Third Party Joinder nor Consolidation

Rules 52 and 53 shall not apply to expedited procedures.

CHAPTER VII  Costs

Rule 83.  Allocation of Costs

1The costs of the arbitration include the administrative fee, the arbitrator(s)’ remuneration and expenses, and other reasonable expenses incurred with respect to the arbitral proceedings; and the Parties’ legal fees and expenses to the extent the arbitral tribunal determines that they are rea- sonable.

2The arbitral tribunal may apportion the costs under  Rule

83.1 between the Parties, taking into account the Parties’ conduct throughout the course of the arbitral proceedings, the determination on the merits of the dispute, and any relevant circumstances. If before the constitution of the arbitral tribunal, the claimant withdraws its claim, the JCAA may apportion such costs.

3The administrative fee shall be fixed pursuant to the Administrative Fee Regulations, and the arbitrators’ remu- neration and expenses shall be fixed pursuant to the Regulations for Arbitrator’s Remunerations.

Rule 84.  Joint and Several Liability to the JCAA

All Parties to the arbitration shall be jointly and sever- ally liable for payments that have to be made to the JCAA in respect of the arbitrator(s)’ remuneration and expenses, and other reasonable expenses incurred with respect to the arbi- tral proceedings and that are required to be paid to the JCAA.

Rule 85.  Payment, Deposit and Accounting

1The Parties shall pay to the JCAA a sum of money in an amount, in the manner and within the time limit fixed by the JCAA, so as to cover the arbitrator(s)’ remuneration and expenses, and other reasonable expenses incurred with respect to the arbitral proceedings.

2If a Party fails to make payment under Rule 85.1, the arbi- tral tribunal, upon the JCAA’s request, shall suspend or terminate the arbitral proceedings unless the other Party makes such payment.

3If the total sum of money already paid by the Parties to the JCAA exceeds the total sum of the money that is required to be paid as determined by the arbitral tribunal under Rule 61.4, the JCAA shall refund the difference to either or both of the Parties on termination of the arbitral proceed- ings.

Supplementary Provision

1These Rules shall come into effect on December 10, 2015.

2Any arbitral proceedings commenced before these Rules come into effect shall be governed by the former Rules; provided that subsequent proceedings may, upon agree- ment of the parties, be conducted pursuant to these Rules. In the event of such an agreement between the parties, the arbitral proceedings that already have been conducted pursuant to the former Rules shall remain valid.

THE JAPAN COMMERCIAL ARBITRATION

ASSOCIATION

ADMINISTRATIVE FEE REGULATIONS

As Amended and Effective on February 1, 2014

Article 1.  Administrative Fee

1The administrative fee that the claimant shall pay at the time of submitting a Request for Arbitration shall be as fol- lows:


8% Consumption Tax is included in the above Amount of Administrative Fee.

2Where the claim includes a claim for interest, damages, etc. accruing or being caused continuously, the adminis- trative fee shall be calculated based upon the amount of the claim plus the amount of interest, damages, etc. for a period of one year from the date of submitting the Request for Arbitration.

Article 2. Administrative Fee in Case of

Modification of Amount of Claim

If, after paying the administrative fee, the claimant increases the amount of the claim or adds another claim, the administrative fee shall be the amount obtained by applying Article 1 to the claim as modified; provided that “the date of submitting the Request for Arbitration” under Article 1 shall be read as “the date of increasing the amount of the claim or adding another claim.”

Article 3. Request for Decision on Propriety of Amount of Administrative Fee Already Paid

The Parties or the JCAA may request the arbitral tribunal to decide on the propriety of the amount of the administrative fee already paid under Articles 1 and 2. Upon such a deci- sion, if the amount already paid falls short of the amount of the administrative fee so decided, the JCAA may request the claimant to pay the difference, or, if the amount already paid exceeds the amount of the administrative fee so decided, the JCAA shall refund the difference to the claimant.

Article 4. Administrative Fee in Case of Withdrawal of All Claims

1If the claimant, within thirty days after the initiation of the arbitral proceedings and when no arbitrator has been appointed, withdraws all its claims, the JCAA shall refund the total amount of the administrative fee.

2Article 4.1 shall not apply to arbitration under the Expedited Procedures provided for in Chapter VI of the Commercial Arbitration Rules.

Article 5. Administrative Fee in Case of Withdrawal of All Claims where Expedited Procedures Apply

In the case of arbitration under the Expedited Procedures provided for in Chapter VI of the Commercial Arbitration Rules, if the claimant, within ten days after the initiation of the arbitral proceedings and when no arbitrator has been appoint- ed, withdraws all its claims, the JCAA shall refund the total amount of the administrative fee.

Article 6.  Application in Case of Counterclaim

Articles 1 through 5 shall apply to a counterclaim made by the respondent.

Article 7. Special Rules concerning Application for Emergency Measures

1Articles 1 through 6 shall not apply to an application for Emergency Measures.

2The administrative fee and the deposit to cover a part of the emergency arbitrator’s expenses and other reasonable expenses incurred with respect to the proceedings that the applicant should pay at the time of submitting an applica- tion for Emergency Measures shall be as follows: Administrative Fee: ¥216,000 (including 8% Consumption Tax).

Deposit: ¥100,000.

3If the applicant, before the emergency arbitrator has been appointed, withdraws the application for Emergency Measures, the JCAA shall refund the full amount of the administrative fee.

THE JAPAN COMMERCIAL ARBITRATION ASSOCIATION

REGULATIONS FOR ARBITRATOR’S REMUNERATION

As Amended and Effective on February 1, 2014

Article 1.  Application of these Regulations

These Regulations shall apply to the arbitrator’s remuner- ation and related matters for arbitration under the Commercial Arbitration Rules of the JCAA.

Article 2.  Arbitrator’s Remuneration

The basic amount of an arbitrator’s remuneration shall be based on the amount equal to the Hourly Rate multiplied by the number of the Arbitration Hours. Taking into consideration the complexity of the case, the speed of arbitral proceedings, the circumstances of each arbitrator, the role of the presid- ing arbitrator and other circumstances, the JCAA shall deter- mine, within the upper limit specified in the annexed table, the amount of remuneration for each arbitrator pursuant to these Regulations.

Article 3.  Arbitration Hours and Hourly Rate

1The term “Arbitration Hours” means the time spent for hearings and the time reasonably required for preparation for arbitral proceedings and related matters; provided that, only one-half of the traveling time the arbitrator spends for arbitral proceedings shall be added to the Arbitration Hours, except for the time spent for preparation for arbitral proceedings.

2Taking into consideration their experience as arbitra- tors, the complexity of the case and related matters, the JCAA will determine an “Hourly Rate” within the range  of

¥30,000 to ¥80,000 for each arbitrator; provided that the Hourly Rate for the presiding arbitrator shall not be lower than the Hourly Rates of the other arbitrators.

3Notwithstanding Article 3.2, the JCAA may determine any other Hourly Rate if all of the Parties agree.

4If one of the arbitrators has been entrusted by the arbi- tral tribunal to draw up a draft of the arbitral award or

to perform any other functions, an amount equal to the Hourly Rate multiplied by the number of hours spent for the entrusted work shall be added to the amount calcu- lated pursuant to Articles 3.1, 3.2 and 3.3, and such total amount shall be the basic amount of remuneration for that arbitrator as calculated under Article 2.

5The arbitrator(s) shall provide the JCAA with a monthly report stating the time reasonably required for preparation for arbitral proceedings and related matters as well as the traveling time under Article 3.1.

Article 4.  Reduction of Hourly Rate

1When the Arbitration Hours exceed sixty hours, the Hourly Rate shall be reduced by ten percent (10%) for every fifty hours in excess of the initial sixty hours; provided that the reduction shall not exceed fifty percent (50%) of the origi- nal Hourly Rate and provided further that the Hourly Rate for the time spent for the entrusted work by the arbitrator entrusted to do such work as under Article 3.4 shall be equal to that arbitrator’s original Hourly Rate.

2At the time of calculating the number of hours under Article 4.1, the traveling time under Article 3.1 shall not be count- ed.

Article 5.  Reduction of Arbitrator’s Remuneration

In case an arbitrator loses his or her mandate as an arbi- trator due to his or her resignation or other reasons during arbitral proceedings, the JCAA may, in consideration of the circumstances, reduce the arbitrator’s remuneration calcu- lated under Articles 2 through 4.

Article 6. Committee for Reviewing Arbitrator’s Remuneration

1If any arbitrator or Party considers the application of Articles 2 through 5 inappropriate, that arbitrator or Party may request in writing that the JCAA review the application of such provisions. Such request shall be made as early as possible, and at the latest by the time of closing the arbitral proceedings.

2In case a request under the provisions of the preceding paragraph has been made to the JCAA, the Committee for Reviewing Arbitrator’s Remuneration (the “Committee”) shall decide whether or not the request has merit.  If  the

Committee accepts the request, it may set the arbitrator’s remuneration at any appropriate amount notwithstanding Articles 2 through 5.

3The Committee’s determination under Article 6.2 shall be final and no appeal shall be allowed against the arbitrator’s remuneration so determined.

Article 7.  Payment of Arbitrator’s Remuneration

1The JCAA shall pay to the arbitrator his or her remuner- ation without delay upon the arbitrator’s rendering of an arbitral award or making a determination to terminate the arbitral proceedings, or upon any other termination of arbi- tral proceedings.

2The JCAA shall pay to the arbitrator his or her remunera- tion without delay upon the arbitrator’s loss of his or her mandate as an arbitrator due to his or her resignation or other reasons.

Article 8.  Arbitrator’s Expenses

1The arbitrator shall be entitled to reimbursement by the JCAA of his or her actual expenses incurred to the extent reasonable and required for arbitral proceedings, includ- ing expenses for travel, hotels, meals and other expens- es, and which are defined as “the arbitrator(s)’ expenses” under Rule 83.1 of the Commercial Arbitration Rules of the JCAA.

2The travel expenses shall include air, train and taxi fares.

3The arbitrator’s expenses under Article 8.1 shall be paid by the JCAA when the arbitrator has provided documentary evidence thereof to the JCAA.

Article 9. Special Rules concerning Emergency Arbitrator’s Remuneration

1Articles 2 through 6 shall not apply to the emergency arbi- trator’s remuneration and related matters.

2The   emergency  arbitrator’s   remuneration  shall be

¥2,160,000 (including 8% Consumption Tax).  Where the proceedings are terminated before the emergency arbitrator makes a determination on the application for Emergency Measures, the JCAA may reduce the emer- gency arbitrator’s remuneration, if it considers it appro- priate, taking into account the time that the emergency arbitrator has spent for the hearing and other proceedings.

In that case, the JCAA shall without delay notify the emer- gency arbitrator of the reduced amount.

3Articles 7 and 8 shall apply mutatis mutandis to the pay- ment of the emergency arbitrator’s remuneration and expenses, respectively.

4If the emergency arbitrator considers application of  Article

9.2 inappropriate, the emergency arbitrator may request in writing that the JCAA review such application.

5The emergency arbitrator shall make the request under Article 9.4 before the determination on the application for Emergency Measures. Where the JCAA has reduced the emergency arbitrator’s remuneration under Article 9.2, the request shall be made within three days from the day of the receipt of the notice to that effect from the JCAA.

6In case a request under Article 9.5 has been made to the JCAA, the Committee shall decide whether or not the request has merit.  If the Committee accepts the request,  it may set the emergency arbitrator’s remuneration at any appropriate amount notwithstanding Article 9.2.

7The Committee’s determination under Article 9.6 shall be final and no appeal shall be allowed against the emergen- cy arbitrator’s remuneration so determined.

Annex to the Regulations for Arbitrator’s Remuneration

Upper Limit of the Arbitrator’s Remuneration

1.  A sole arbitrator




8% Consumption Tax is included in the above Maximum Amount of Remuneration.

2 Multiple arbitrators

(Maximum Amount of Remuneration of a sole arbitrator) × (number of arbitrators) × 0.8 shall be the maximum aggregate remuneration for multiple arbitrators.

一、          INTERNATIONAL ARBITRATION RULES

KoReAn CommeRCIAl ARBItRAtIon BoARd

KOREAN COMMERCIAL ARBITRATION BOARD

INTERNATIONAL ARBITRATION RULES

As amended by the Supreme Court on June 29, 2011 (effective on and from September 1, 2011)

?These Rules shall apply to arbitrations in which an arbitration agreement under Article 3 of these Rules was entered into by the parties after September 1, 2011.

MODEL CLAUSE FOR FUTURE DISPUTES

Any disputes arising out of or in connection with this con- tract shall be finally settled by arbitration in Seoul in ac- cordance with the International Arbitration Rules of the Korean Commercial Arbitration Board.

The number of arbitrators shall be [one / three]

The seat, or legal place, of arbitral proceedings shall be [city / country]

The language to be used in the arbitral proceedings shall be [language]

MODEL AGREEMENT FOR EXISTING DISPUTES

We, the undersigned parties, hereby agree that the follow- ing dispute shall be referred to and finally determined by arbitration in accordance with the KCAB International Arbitration Rules :

[brief description of the dispute]

The number of arbitrators shall be [one / three]

The seat, or legal place, of arbitral proceedings shall be [city / country]

The language to be used in the arbitral proceedings shall be [language]

ARTICLE 1. RULES AND INSTITUTION

1.These rules are the Rules of International Arbitration of the Korean Commercial Arbitration Board (“KCAB”) and may be referred to as the “KCAB International Ar- bitration Rules” or “Rules”.

2.The KCAB shall appoint, among its secretariat (“Secre- tariat”), a secretary to administer the matters concerning arbitration proceedings to be conducted in accordance with these Rules.

3.The KCAB shall establish the International Arbitration Committee (“Committee”) composed of the members of its own choice. The KCAB shall consult the Commit- tee in making decisions with respect to Article 13 and 14 of these Rules, and when it deems it necessary, Article 12 of these Rules.

ARTICLE 2. DEFINITIONS

The definitions of terms used in these Rules shall be as fol- lows:

(a)“Arbitral tribunal” includes arbitral tribunals com- posed of one or more arbitrators.

(b)“Claimant” includes one or more claimants and “Re- spondent” includes one or more respondents.

(c)“Award” includes, inter alia, an interim, interlocu- tory, partial and final Award.

(d)“International Arbitration” refers to an arbitration where:

(i)at least one of the parties to an arbitration agree- ment, at the time of conclusion of that agree- ment, has its place of business in any State other than Korea; or

(ii)the place of arbitration set out under an  arbitra-

tion agreement is in any State other than Korea.

(e)For the purposes of sub-paragraph (d) above the place of business shall be deemed to be:

(i)the principal place of business, if a party has more

than one place of business; or

(ii)his habitual residence, if a party does not have a place of business.

ARTICLE 3. SCOPE Of APPLICATION

1.In either of the following cases, the arbitration shall be conducted in accordance with these Rules, which shall be deemed to form a part of the arbitration agreement, subject to whatever modifications the parties may adopt in writing:

(a)where the parties have agreed in writing to refer their disputes to arbitration under these Rules; or

(b)where the parties have agreed in writing to refer their disputes to arbitration before the KCAB, and the ar- bitration is an International Arbitration.

2.These Rules govern the arbitration, except that, where any such rule is in conflict with any provision of the law applicable to the arbitration from which the parties can- not derogate, that provision shall prevail.

ARTICLE 4. NOTIFICATION AND DOCUMENT SUBMISSION

1.All pleadings and other written communications sub- mitted by any party, as well as all documents annexed thereto, shall be supplied in a number of copies suffi- cient to provide one copy for each party, plus one for each arbitrator, and one for the Secretariat. A copy of any communication from the Arbitral tribunal to the parties shall be sent to the Secretariat.

2.All notifications or communications from the Secretariat and the Arbitral tribunal shall be made to the last known address of the party or its representative for whom the same are intended. Such notification or communica- tion may be made by delivery against receipt, registered post, courier, facsimile transmission, telex, telegram or any other means of telecommunication that provides a record of the sending thereof.

3.A notification or communication shall be deemed to have been made on the day it was received by the party itself or by its representative, or would have been re- ceived if made in accordance with Paragraph 2.

4.Until the Arbitral tribunal is constituted, all communi- cations between parties or between each party and arbi- trators shall be made through the Secretariat. Thereafter, unless and until the Arbitral tribunal directs otherwise, all communications, written or verbal, shall take place directly between parties or between each party and the Arbitral tribunal (with simultaneous copies to the Sec- retariat, if written).

5.Where the Secretariat sends any written communica- tion to one party on behalf of the Arbitral tribunal, the Secretariat shall send a copy to each of the other parties. Where any party sends to the Secretariat any communi- cation, it shall include a number of copies sufficient to provide one copy for each of the other parties and one for each arbitrator. The Secretariat shall then send such copies to the other parties and the Arbitral tribunal.

ARTICLE 5. TIME LIMITS

1.For the purpose of determining the date of commence- ment of a time limit, a notice or other communication shall be deemed to have been received on the day it is delivered in accordance with Article 4.

2.For the purpose of determining compliance with a time limit, a notice or other communication shall be deemed to have complied with a time limit if it is dispatched, in accordance with Article 4, prior to or on the day of the expiration of the time limit.

3.For the purpose of calculating a period of time under these Rules, such period shall commence on the day im- mediately following the day when a notice or other com- munication is received. If the last day of such period is an official holiday or a non-business day at the place of resi- dence or business of the addressee, the period will expire on the first following business day. official holidays or non-business days occurring during the running of the period of time are included in calculating the period.

ARTICLE 6. GENERAL RULE AND RULE Of INTERPRETATION

In all matters not expressly provided for in these Rules, the Secretariat and the Arbitral tribunal shall act in the spirit of these Rules and shall make every effort to make sure that the Award is enforceable at law.

ARTICLE 7. RERRESENTATION

A party may be represented by any person of its choice in the proceedings under these Rules, subject to such proof of authority as the Arbitral tribunal may require.

ARTICLE 8. REQUEST FOR ARBITRATION

1.A party intending to have recourse to arbitration under these Rules shall submit its Request for Arbitration (“Re- quest”) to the Secretariat, which shall notify the Claim- ant and the Respondent of the receipt of the Request and the date of such receipt.

2.The date on which the Request is received by the Secre- tariat shall, for all purposes, be deemed to be the date of the commencement of the arbitration proceedings.

3.The Request shall, inter alia, contain, or be accompanied by, the following:

(a)full name and address, telephone and facsimile num- bers (with country code and city code) of the Claim- ant;

(b)description of the Claimant, including its corporate form with location of incorporation or establishment (if applicable), or in case of an individual, the nation- ality of the individual and primary place of residence or employment;

(c)full name and address of each party against whom the arbitration is initiated (“Respondent”) together with telephone and facsimile numbers with country and city code (if known);

(d)a statement describing the nature and circumstances of the dispute giving rise to the claims;

(e)a statement of the relief sought, including, to the extent possible, an indication of any amount(s) claimed;

(f)) a statement of any matters (such as the place or lan- guages of the arbitration, applicable laws or the num- ber of arbitrators, or their qualifications or identities)

on which the parties have already agreed in writing in regard to the arbitration proceedings or in respect of which the Claimant wishes to make a proposal;

(g)if the arbitration agreement calls for party nomina- tion of arbitrators, the name, address, telephone and facsimile numbers and any e-mail address (if known) of the Claimant’s nominee;

(h)the relevant agreements and, in particular, the writ- ten arbitration clause or separate written arbitration agreement invoked by the Claimant; and

(i)full name and address, telephone and facsimile num- bers (with country code and city code) of the repre- sentative.

4.The Claimant shall submit the Request in the number of copies required by Article 4 and shall pay the filing fees provided under Appendix I (“Regulations on Filing Fees and Administrative Fees”) as in effect on the date the Request is submitted. In the event that the Claimant fails to comply with any of these requirements, the Sec- retariat may fix a time limit within which the Claimant must comply failing which the file shall be closed with- out prejudice to the rights of the Claimant to submit the same claims at a later date in another Request.

5.The Secretariat shall send a copy of the Request and the documents annexed thereto to the Respondent for its Answer to the Request once the Secretariat has sufficient copies of the Request and the required advance pay- ment.

6.When a party submits a Request in connection with a le- gal relationship in respect of which arbitration proceed- ings between the same parties are already pending under these Rules, the Arbitral tribunal may, at the request of a party, decide to include the claims contained in the Request in the pending proceedings, by taking into ac- count the nature of such new claims, the stage of the arbitration and other relevant circumstances.

ARTICLE 9. ANSWER TO THE REQUEST AND COUNTERCLAIMS

1.Within thirty (30) days from the receipt of the Request from the Secretariat, the Respondent shall file an Answer (“Answer”) which shall, inter alia, contain the following information:

(a)full name and address, telephone and facsimile num- bers (with country code and city code) of the Re- spondent;

(b)description of the Respondent, including its corpo- rate form with location of incorporation or establish- ment (if applicable), or in case of an individual, the nationality of the individual and primary place of residence or employment;

(c)confirmation or denial of all or part of the claims ad- vanced by the Claimant in the Request and responses to the relief sought in the Request;

(d)any comments concerning the number of arbitrators and their choice in light of the Claimant’s proposals and in accordance with the provisions of Article 11 and 12, and any nomination of an arbitrator required thereby;

(e)any comments as to the place of arbitration, the ap- plicable laws and the language of the arbitration;

(f)) if the arbitration agreement calls for party  nomina- tion of arbitrators, the name, address, telephone and facsimile numbers and e-mail  address (if known) of the Respondent’s nominee; and

(g)full name and address, telephone and facsimile num- bers (with country code and city code) of the repre- sentative.

2.The Secretariat may grant the Respondent an extension of the time for filing the Answer; provided that the appli- cation for such an extension contains the Respondent’s comments concerning the number of arbitrators     and

their choice and, where required by Article 11 and 12, the appointment of an arbitrator. If the Respondent fails to do so, the Secretariat shall proceed in accordance with these Rules.

3.The Answer shall be supplied to the Secretariat in the number of copies specified by Article 4.

4.Any counterclaim(s) made by the Respondent shall be filed with its Answer (or may be filed at a later stage in the arbitration proceedings if the Arbitral tribunal de- cides that the delay was justified under the circumstanc- es) and shall provide the following, provided, however, that the grounds for any counterclaim must be based on the arbitration agreement pending between the Claim- ant and the Respondent:

(a)a description of the nature and circumstances of the dispute giving rise to the counterclaim(s); and

(b)a statement of the relief sought including, to the ex- tent possible, an indication of any amount(s) coun- terclaimed.

5.When the Arbitral tribunal considers that the purport and grounds of the Respondent’s defense includes a counterclaim, the Arbitral tribunal may request the Re- spondent to clarify whether it intended to file a counter- claim as provided in Paragraph 4 above.

6.Failure to file an Answer shall not preclude the Re- spondent from denying any claim or from advancing a counterclaim in the arbitration proceeding. However,   if the arbitration agreement calls for party nomination of arbitrators, failure to send an Answer or to nominate an arbitrator within the time limit or at all shall consti- tute an irrevocable waiver of that party’s opportunity to nominate an arbitrator.

ARTICLE 10. GENERAL  PROVISIONS

1.Arbitrators acting under these rules shall be, and remain at all times, impartial and independent.

2.Prior to accepting appointment, a prospective arbitrator shall disclose in writing to the Secretariat any circum- stance likely to give rise to justifiable doubts as to his impartiality or independence. If, at any stage during the arbitration, new circumstances arise that may give rise to such doubts, an arbitrator shall immediately disclose in writing to the parties and to the Secretariat such circum- stances.

3.The decisions of the Secretariat on any matter related to the appointment, replacement or removal of arbitrators shall be final and not subject to appeal.

ARTICLE 11. THE NUMBER Of ARBITRATORS

In principle, the disputes under these Rules shall be de- cided by a sole arbitrator. However, a case may be decided by three (3) arbitrators if the parties have agreed to do so or the Secretariat, in the absence of such an agreement be- tween the parties, taking into consideration the parties’ in- tentions, the amount, the complexity or other factors of the dispute, considers it appropriate to appoint three (3) arbitrators.

ARTICLE 12. APPOINTMENT Of ARBITRATORS

1.Where the dispute is to be referred to a sole arbitrator, the parties shall agree upon and appoint a sole arbitra- tor within thirty (30) days of the receipt of the Request for Arbitration by the Respondent or the decision of the Secretariat that the number of arbitrators shall be   one

(1)as provided in Article 11 above. If the parties fail to jointly appoint a sole arbitrator within that time frame or within such additional time as may be allowed by the Secretariat, the Secretariat shall appoint the sole arbitra- tor.

2.Where the parties have agreed that the dispute is to be settled by three (3) arbitrators, the Claimant shall ap- point an arbitrator in its Request or within such addi- tional time as may be allowed by the Secretariat, and the Respondent shall appoint an arbitrator in its Answer or within such additional time as may be allowed by the Secretariat. Where the dispute is to be referred to three

(3) arbitrators pursuant to the decision of the Secretariat as provided in Article 11 above, each party shall appoint an arbitrator within thirty (30) days from receipt of the notice from the Secretariat or within such additional time as may be allowed by the Secretariat. If either party fails to appoint an arbitrator within that time limit, the Secretariat shall appoint such arbitrator. Upon appoint- ment of the first two arbitrators, the two arbitrators shall agree upon the third arbitrator, who shall act as chair- man of the Arbitral tribunal. If, within thirty (30) days of the appointment of the second arbitrator, the two ar- bitrators have not appointed a third arbitrator to act as chairman of the Arbitral tribunal, the Secretariat shall appoint such arbitrator.

3.In cases where the Arbitral tribunal is to consist of three

(3) arbitrators and there are multiple parties, whether  as Claimant or as Respondent, the multiple claimants, jointly, and the multiple respondents, jointly, shall ap- point an arbitrator pursuant to Article 12 (2).In the ab- sence of such a joint nomination and where all parties are unable to agree to a method for the constitution of the Arbitral tribunal, the Secretariat shall appoint each member of the Arbitral tribunal and shall designate one of them to act as chairman.

4.In appointing arbitrators, the Secretariat shall consider the prospective arbitrator’s experience, availability, na- tionality and residence. When one of the parties requests, the Secretariat shall appoint, as the person to act as a sole arbitrator or a chairman of the Arbitral tribunal, a per- son whose nationality is different from the nationalities of each of the parties.

5.When all members of the Arbitral tribunal have been appointed pursuant to these Rules, the Secretariat shall without delay notify in writing all members of the Ar- bitral tribunal and both parties of the full name(s), address(es) and occupation(s) of the arbitrator(s).

ARTICLE 13. CHALLENGE Of ARBITRATORS

1.Any arbitrator may be challenged if circumstances exist that give rise to justifiable doubts as to the arbitrator’s impartiality or independence. A party who participates in the appointment of an arbitrator may challenge the arbitrator so appointed only for reasons of which the party becomes aware after the appointment.

2.A challenge of an arbitrator, whether for an alleged  lack of independence, impartiality or otherwise, shall be made by the submission to the Secretariat of a writ- ten statement specifying the facts and circumstances on which the challenge is based. Such statement shall    be

11   copied to all of the parties to the arbitration, and to any arbitrators in the case.

3.For a challenge to be considered, it must be sent by a party either within fifteen (15) days from receipt by that party of notice of appointment of the arbitrator, or within fifteen (15) days from the date when the party making the challenge was informed of the facts and cir- cumstances on which the challenge is based.

4.The challenged arbitrator, the other party or parties and any other members of the Arbitral tribunal may com- ment on the challenge, in writing, within fifteen (15) days of their receipt of the challenge. Such comments shall be communicated to the Secretariat, each of the parties and the arbitrators.

5.When an arbitrator has been challenged by one party, the other party or parties may agree to the acceptance of the challenge and, if there is an agreement, the arbitra- tor shall withdraw. The challenged arbitrator may also withdraw from office in the absence of such agreement. In neither case does withdrawal imply acceptance of the validity of the grounds for the challenge. If the other party does not agree to the challenge, or the challenged arbitrator does not withdraw, the Secretariat shall make a decision on the challenge.

ARTICLE 14. REPLACEMENT AND REMOVAL Of ARBITRATORS

1.An arbitrator shall be replaced upon that arbitrator’s death, upon the acceptance by the Secretariat of the ar- bitrator’s resignation, upon a decision of the Secretariat to sustain a challenge or, upon the request of all the par- ties to the arbitration.

2.The Secretariat may remove any arbitrator who fails to perform his or her duties or unduly delays in the perfor- mance of his or her duties, or is legally or actually unable to perform his or her duties.

3.In the event of the replacement of an arbitrator during the course of the arbitration proceedings, a substitute arbitrator shall be appointed or chosen pursuant to the procedure provided for in Article 12 that was applicable to the appointment or choice of the arbitrator being re- placed.

4.once the arbitrator has been replaced, and after consul- tation with the parties, the Arbitral tribunal shall de- termine if and to what extent prior proceedings shall be repeated before the reconstituted Arbitral tribunal.

5.Subsequent to the closure of the proceedings, instead of replacing an arbitrator who has died, resigned or been removed, the Secretariat may decide that the remain- ing arbitrators shall complete the arbitration. In making such a determination, the Secretariat shall consult with the remaining arbitrators and the parties and may con- sider such other matters that it considers appropriate in making its decision.

ARTICLE 15.PROCEDURAL  TIMETABLE

1.After having consulted the parties, the Arbitral tribu- nal shall establish in a separate document a provisional timetable that it intends to follow for the conduct of the arbitration and shall communicate it to the Secretariat and the parties within thirty (30) days of the constitu- tion of the Arbitral tribunal.

2.notwithstanding Paragraph 1 above, the Arbitral tribu- nal may, in general following the submission of the An- swer, conduct a preparatory conference with the parties for the purpose of organizing and scheduling the subse- quent proceedings.

ARTICLE 16. FURTHER WRITTEN STATEMENTS

1.The Arbitral tribunal may, in its discretion, allow or require the parties to submit any written statements in addition to the Request and the Answer (Counterclaim), and it shall fix the periods of time for submitting any such statements.

2.The periods of time fixed by the Arbitral tribunal for the submission of such written statements should not exceed forty-five (45) days.

3.The party who presents additional written statements in accordance with Paragraph 1 above shall provide the other party and the Arbitral tribunal with such writ- ten statements accompanied by copies (or, if they are especially voluminous, lists) of all essential documents on which the party concerned relies and which have not previously been submitted by any party, and (where ap- propriate) by any relevant samples and exhibits.

ARTICLE 17. AMENDMENT TO CLAIMS, DEFENSES AND COUNTERCLAIMS

during the arbitration proceedings, any party may amend or supplement its claim, counterclaim or defense and no- tify the other party and the Secretariat thereof, unless the Arbitral tribunal considers it inappropriate to allow such amendment or supplement because of delay to the pro- ceedings, prejudice to the other parties or any other cir- cumstances. A party may not amend or supplement a claim or counterclaim if the amendment or supplement would fall outside the scope of the agreement to arbitrate.

ARTICLE 18. PLACE Of ARBITRATION

1.The place of the arbitration, in the absence of an agree- ment by the parties, shall be Seoul, the Republic of Ko- rea, unless the Arbitral tribunal determines in view of all the circumstances of the case that another place is more appropriate.

2.The Arbitral tribunal may, after consultation with the parties, conduct hearings and meetings at any location it considers appropriate.

3.The Arbitral tribunal may deliberate at any location it considers appropriate.

ARTICLE 19. pLEAS AS TO THE JURISdICTION Of THE ARBITRAL TRIBUNAL

1.The Arbitral tribunal shall have the power to rule on objections that it has no jurisdiction, including any ob- jections with respect to the existence or validity of the arbitration clause or of the separate arbitration agree- ment.

2.The Arbitral tribunal shall have the power to determine the existence or validity of a contract of which an arbitra- tion clause forms a part. Such an arbitration clause shall be treated as an agreement independent of the other terms of the contract. A decision by the Arbitral tribunal that the contract is null and void shall not for that reason alone render invalid the arbitration clause.

3.A plea that the Arbitral tribunal does not have jurisdic- tion shall be raised no later than the filing of the Answer to the Request, as provided in Article 9, or, with respect to a counterclaim, the filing of the Answer to the coun- terclaim.

4.In general, the Arbitral tribunal should rule on a plea concerning its jurisdiction as a preliminary question. However, the Arbitral tribunal may proceed with   the

15   arbitration and rule on such a plea in its final Award.

ARTICLE 20. CONdUCT Of ARBITRATION

1.Subject to the mandatory provisions of these Rules, the parties are free to agree on the arbitration proceedings.

2.Subject to these Rules, the Arbitral tribunal may con- duct the arbitration in whatever manner it considers appropriate, provided that the parties are treated with equality and that each party has the right to be heard and is given a fair opportunity to present its case.

3.The Arbitral tribunal may in its discretion bifurcate pro- ceedings and direct the parties to focus their presenta- tion on issues the decision of which could dispose of all or part of the case.

ARTICLE 21.

RULES GOVERNING THE  PROCEEDINGS

The Arbitral tribunal shall conduct the proceedings in ac- cordance with these Rules and, where these Rules are silent, any rules which the parties or, failing them, the Arbitral tribunal may settle on.

ARTICLE 22. EVIDENCE

1.Unless the parties agree otherwise in writing, the Arbi- tral tribunal may at any time during the proceeding or- der the parties:

(a)to produce documents, exhibits or other evidence it deems necessary and appropriate; or

(b)to make any property, site, or object under their con- trol and relating to the subject matter of the arbitra- tion available for inspection by the Arbitral tribunal, any other party, or any expert to the Arbitral tribu- nal.

2.The Arbitral tribunal may require a party to deliver to the Arbitral tribunal and to the other parties a summary of the documents and other evidences which that party intends to present in support of its claim, counterclaim or defense.

3.each party shall have the burden of proving the facts relied upon to support any claim, counterclaim or de- fense.

4.The power conferred upon the Arbitral tribunal shall include the power to determine the admissibility, rel- evance, materiality and weight of any evidence.

ARTICLE 23. EXPERTS

1.The Arbitral tribunal may appoint one or more experts to report to it on specific issues to be determined by the Arbitral tribunal and communicated to the parties. A copy of the expert’s terms of reference, established by the Arbitral tribunal, shall be communicated to the parties.

2.The Arbitral tribunal may require a party to give the expert any relevant information or to provide access to any relevant documents, goods or other property for his inspection.

3.Upon receipt of the expert’s report, the Arbitral tribunal shall send a copy of the report to all parties and shall give the parties an opportunity to comment on the report. A party may examine any document on which the expert has relied in preparing such a report.

ARTICLE 24. LANGUAGE Of THE ARBITRATION

In the absence of an agreement by the parties, the Arbitral tribunal shall determine the language or languages of the arbitration, due regard being given to all relevant circum- stances, including the language of the contract.

ARTICLE 25. APPLICABLE LAW

1.The parties shall be free to agree upon the substantive laws or rules of law to be applied by the Arbitral tribunal to the merits of the dispute. In the absence of any such agreement, the Arbitral tribunal shall apply the substan- tive laws or rules of law which it determines to be ap- propriate.

2.In all cases the Arbitral tribunal shall take account of the provisions of the contract and the relevant trade usages.

3.The Arbitral tribunal shall assume the powers of an ami- able compositeur or decide ex aequo et bono only if the parties have expressly agreed to give it such powers.

ARTICLE  26. HEARINGS

1.When a hearing is to be held, the Arbitral tribunal, giv- ing reasonable notice, shall summon the parties to ap- pear before it on the day and at the place fixed by it.

2.The Arbitral tribunal shall be in full charge of the hear- ings, at which all the parties shall be entitled to be pres- ent. Save with the approval of the Arbitral tribunal and the parties, persons not involved in the proceedings shall not be admitted.

3.The parties may appear in person or through duly autho- rized representatives. In addition, they may be assisted by advisors.

4.Hearings are private unless the parties agree otherwise or the law provides to the contrary. The Arbitral tribu- nal may require any witness or witnesses to retire during the testimony of other witnesses. The Arbitral tribunal may determine the manner in which witnesses are exam- ined.

5.The Secretariat may, at the request of the Arbitral tri- bunal or either party, make tape recordings and arrange for interpreting, making stenographic transcript and providing a hearing room and the like as necessary for conducting the arbitration proceedings, with the costs to be borne by the parties.

ARTICLE 27. CLOSURE Of THE PROCEEDINGS

1.When it is satisfied that the parties have had a reasonable opportunity to present their cases, the Arbitral tribunal shall declare the proceedings closed. Thereafter, no fur- ther submission or argument may be made, or evidence produced, unless requested or authorized by the Arbitral tribunal.

2.The Arbitral tribunal in its discretion, on its own mo- tion or upon application of a party, may reopen the hear- ing at any time before the Award is made.

ARTICLE 28.

CONSERVATORY  AND  INTERIM MEASURES

1.Unless the parties have agreed otherwise, as soon as the file has been transmitted to it, the Arbitral tribunal may at the request of a party order any interim or conserva- tory measure it deems appropriate. The Arbitral tribu- nal may make the granting of any such measure subject to appropriate security being furnished by the requesting party. Any such measure shall take the form of an order, giving reasons, or of an Award, as the Arbitral tribunal considers appropriate.

2.Before the file is transmitted to the Arbitral tribunal, and in appropriate circumstances even thereafter, the parties may apply to any competent judicial authority for interim or conservatory measures. The application of a party to a judicial authority for such measures or for the implementation of any such measures ordered by an

Arbitral tribunal shall not be deemed to be an infringe- ment or a waiver of the arbitration agreement and shall not affect the relevant powers reserved to the Arbitral tribunal. Any such application and any measures taken by the judicial authority must be notified without delay to the Secretariat. The Secretariat shall inform the Arbi- tral tribunal thereof.

ARTICLE 29. DEFAULT

1.If, within the period of time fixed by the Arbitral tribu- nal, the Respondent has failed to file an Answer without showing sufficient cause for such failure, the Arbitral tri- bunal shall order that the proceedings continue.

2.If any of the parties, although duly summoned, fails to appear without valid excuse, the Arbitral tribunal shall have the power to proceed with the hearing.

3.If any of the parties, although duly invited to produce documentary evidence, fails to do so within the estab- lished period of time, without valid excuse, the Arbitral tribunal may make the Award on the evidence before it.

ARTICLE  30. DECISIONS

Where there is more than one arbitrator and they fail to agree on any issue, any Award or decision shall be made by a majority of the arbitrators. Failing a majority decision on any issue, the Award on that issue shall be made by the chairman of the Arbitral tribunal alone.

ARTICLE 31.

FORM AND EFFECT Of THE AWARD

1.The Award shall be in writing. Unless the parties have agreed otherwise, the Arbitral tribunal shall state the reasons upon which the Award is based.

2.The Award shall state its date and shall be signed by all the members of the Arbitral tribunal. If a minority ar- bitrator refuses or fails to sign the Award, the remaining arbitrators shall specify the reason and sign thereon. The Award shall be deemed to be made at the place of the arbitration and on the date stated therein.

3.every Award shall be binding on the parties. The parties undertake to carry out the Award without delay.

ARTICLE 32. INTERIM, INTERLOCUTORY OR PARTIAL  AWARDS

1.In addition to making a final Award, the Arbitral tribu- nal shall be entitled to make interim, interlocutory or partial Awards.

2.In case of partial Awards, the Arbitral tribunal may make Awards on different issues at different times, which shall be subject to correction under the procedure specified under Article 36. Unless stated otherwise by the Arbitral tribunal, such Awards shall be individually enforceable as soon as they are made.

ARTICLE 33.

TIME LIMIT fOR THE fINAL AWARd

1.Unless all parties agree otherwise, the Arbitral tribunal shall make its Award within forty-five (45) days from the date on which final submissions are made or the hearings are closed whichever comes later.

2.The Secretariat may extend this time limit pursuant to a reasoned request from the Arbitral tribunal or on its own initiative if it decides it is necessary to do so.

ARTICLE 34. AWARD  BY CONSENT

If the parties reach a settlement after the Request is filed and advance cost is made under these Rule, the Arbitral tribunal may render a consent Award recording the settle- ment if any party so requests. If the parties do not require a consent Award, then on written confirmation by the par- ties to the Secretariat that a settlement has been made, the Arbitral tribunal shall be discharged and the reference to arbitration concluded, subject to payment by the parties of any outstanding costs of the arbitration.

ARTICLE 35.

NOTIFICATION AND DEPOSIT Of THE AWARD

1.once an Award has been made, the Secretariat shall notify to the parties the written Award signed by the Arbitral tribunal, provided always that the costs of the arbitration have been fully paid to the Secretariat by the parties or by one of them. By virtue of the notification made in accordance with the above, the parties waive any other form of notification or deposit on the part of the Arbitral tribunal.

2.The Arbitral tribunal and the Secretariat shall assist the parties in complying with whatever further formalities may be necessary.

ARTICLE 36. CORRECTION

AND INTERPRETATION Of THE AWARD

1.on its own initiative, the Arbitral tribunal may, within thirty (30) days of the date of the Award, correct a cleri- cal, computational or typographical error, or any errors of similar nature contained in an Award.

2.Within thirty (30) days of receipt of the Award, unless the parties agree otherwise, a party may by notice to the Secretariat request the Arbitral tribunal to correct any error of the kind referred to in Paragraph 1 or for the interpretation of an Award. Any correction or interpre- tation shall be given in writing within thirty (30) days after the receipt of the Request. Such corrections or in- terpretation shall form part of the Award.

ARTICLE 37. ADDITIONAL AWARD

Unless agreed otherwise by the parties, a party may, within thirty (30) days of receipt of the Award, and with notice to the other party or parties, by notice to the Secretariat request the Arbitral tribunal to make an additional Award as to claims presented in the arbitration proceedings but not dealt with in the Award. If the Arbitral tribunal consid- ers the Request to be justified, it shall make the additional Award within sixty (60) days of receipt of the request.

ARTICLE 38. SCOPE Of APPLICATION

In either of the following cases, Arbitration proceeding shall be conducted in accordance with the expedited proce- dures provided in this Chapter of these Rules  (“expedited

23   Procedures”):

1.where the claim amount does not exceed 200,000,000 Korean won; or

2.where the parties agree to be subject to the expedited Procedures.

ARTICLE 39.TIMELIMITSTOCOUNTERCLAIMS, AND INCREASES TO CLAIM AND COUNTER- CLAIM AMOUNTS

1.In the event that the amount of a counterclaim exceeds 200,000,000 Korean won, the Respondent shall be al- lowed to file such a counterclaim only within the time limit set out in Article 9 (4). In such cases, the arbitra- tion proceeding shall not be administered pursuant to the expedited Procedures, unless the parties agree other- wise.

2.The expedited Procedures shall not apply when, due to a party’s application for increase, the amount of the claim or counterclaim comes to exceed 200,000,000 Korean won, unless the parties agree that the expedited Proce- dures shall continue to govern the arbitration proceed- ings notwithstanding such an increase, and the Arbitral tribunal, if already constituted, approves.

ARTICLE 40. APPOINTMENT Of ARBITRATOR

1.The Secretariat shall appoint a sole arbitrator from among the Roster of International Arbitrators without recourse to Article 12 provided herein unless agreed oth- erwise by the parties.

2.If the arbitration agreement provides for three arbitra- tors, the Secretariat may encourage the parties to agree to refer the case to a sole arbitrator.

ARTICLE 41. HEARING PROCEDURES

1.The Arbitral tribunal shall fix the time, date and place of the hearing, and shall give notice to the parties and the Secretariat of the same orally, by hand, by telephone, in writing, or by any other appropriate method.

2.The hearing, if any, shall be held only once, provided; however, where the Arbitral tribunal deems necessary, it may hold subsequent hearings, or require further sub- mission of documents after the hearing.

ARTICLE 42. DOCUMENTARY PROCEEDINGS

1.Unless agreed otherwise between the parties, where nei- ther party’s claim exceeds 20,000,000 Korean won, the dispute shall be resolved on the basis of documentary evidence only, provided, however, that the Arbitral tri- bunal may hold a hearing at the request of a party or on its own initiative.

2.The Arbitral tribunal shall establish appropriate pro- cedures for the fixing of time periods and methods for written submissions.

ARTICLE 43. THE AWARD

1.The Award shall be made within three (3) months from the date of constitution of the Arbitral tribunal, pro- vided however that the Secretariat, at the request of the Arbitral tribunal or on its own initiative, may decide to allow extension of the time limit, if it deems necessary.

2.The Arbitral tribunal shall state the reasons upon which the Award is based in summary form, unless agreed oth- erwise by the parties.

ARTICLE 44.

APPLICATION  MUTATIS MUTANDIS

The provisions of these Rules shall apply mutatis mutandis

25   to matters which are not prescribed in this Chapter.

ARTICLE 45.

OBLIGATION TO PAY  ARBITRATION COSTS

1.The Arbitration Costs shall include the filing fees, the administrative fees, the fees and expenses of the arbi- trators incurred during the arbitration proceedings in accordance with the “Regulations on Filing Fees and Administrative Fees (APPendIX I)” and “Regulations on Arbitrators Fees and expenses (APPendIX II)” and other expenses.

2.The parties shall be jointly and severally liable for pay- ment of Arbitration Costs to the Secretariat.

3.Should the amount in dispute be reduced due to the amendment of the claim according to Article 17, the administrative fees and the arbitrator’s fees already paid shall not be refunded.

ARTICLE 46. ADVANCE TO

COVER THE COSTS Of THE ARBITRATION

1.The parties shall pay in advance to the Secretariat, in the manner and within the period of time determined by the Secretariat, a sum of money fixed by Secretariat (“Ad- vance for Costs”) to cover the Arbitration Costs incurred during the proceedings. The amount may be subject to readjustment at any time during the arbitration.

2.The Secretariat shall fix the amount of any Advance  for Costs or supplementary Advance for Costs. The Secretariat shall request each party to deposit a certain amount as an Advance for Costs. The Advance for Costs shall be payable in equal shares by the Claimant and the Respondent unless parties agree otherwise. The payment shall be in cash.

3.In case there are multiple claimants or respondents, such multiple parties shall be jointly and severally liable for the payment of all claimants or respondents whichever is applicable. Unless agreed otherwise by the relevant par- ties, each party shall pay an equal share.

4.If a party fails to make payment as provided in the pre- ceding Paragraphs, the Secretariat after consultation with the Arbitral tribunal, may order the suspension or termination of the arbitration proceedings.

5.Any party shall be free to pay the whole of the Advance for Costs should the other party fail to pay its share. In such case, such party may request the Arbitral tribunal to order the failing party to pay its share in a form of interim, interlocutory or partial Awards.

6.The Secretariat shall return the remainder amount,if          

any, from the Advance for Costs, at the end of  arbitra-

tion proceedings, to the party who paid such Advance for Costs.

7.Any interest incurred from the Advance for Costs shall not be refunded.

ARTICLE 47.

APPORTIONMENT Of ARBITRATION COST

1.The Arbitration Costs including administrative fees shall in principle be borne by the unsuccessful party. How- ever, the Arbitral tribunal, taking into account the cir- cumstances of the case, may, at its discretion, apportion each such costs between the parties.

2.When the Arbitral tribunal issues any Award, it shall fix the costs of arbitration provided that in case of interim, interlocutory or partial Awards, the Arbitral tribunal may postpone such decision by the time of issue for the final Award.

ARTICLE 48. COSTS INCURRED BY A  PARTY

The necessary costs and expenses including but not limited to attorney fees and costs for experts, interpreters, witnesses incurred by a party during the arbitration proceedings shall be borne by such party subject to the allocation determined by the Arbitral tribunal set forth in the Arbitral Award. Unless agreed otherwise by the parties, the Arbitral tribu- nal shall, taking into account the circumstances of the case, decide on allocation between the parties of the necessary expenses incurred during the arbitration proceedings.

ARTICLE 49. MODIFIED TIME LIMITS

The parties may modify any period prescribed under these Rules by written agreement. The Arbitral tribunal may, if it decides reasonable, extend any period established by these Rules, except the period for rendering an Award. The Arbi- tral tribunal shall notify the parties through the Secretariat of any such extension and reasons therefor.

ARTICLE 50. WAIVER

A party who knows that any provision of these Rules, the arbitration agreement, any other rules applicable to the proceedings or any instruction given by the Arbitral tri- bunal has not been complied with and yet proceeds with the arbitration without promptly stating its objection to such noncompliance, shall be deemed to have waived its right to object.

ARTICLE 51. EXCLUSION Of LIABILITY

The members of the Arbitral tribunal and the Secretariat shall not be liable to any party for any act or omission in connection with any arbitration conducted under these Rules, unless such act or omission is shown to constitute a willful misconduct or recklessness.

ARTICLE 52. CONFIDENTIALITY

1.Arbitration proceedings, and records thereof, shall be closed to the public.

2.The members of the Arbitral tribunal and the Secre- tariat, the parties and their representatives and assistants shall not disclose facts related to arbitration cases or facts learned through arbitration cases except where disclo- sure is consented to by the parties, required by law or required in court proceedings.

SUPPLEMENTARY PROVISIONS

1.These Rules shall be effective on and from February 1, 2007.

2.Any arbitral proceedings initiated before these Rules come into effect shall be governed by the Arbitration Rules of the KCAB; provided that subsequent proceed- ings may, upon agreement of the parties, be conducted pursuant to these Rules. In the event of such an agree- ment between the parties, the proceedings that already have been conducted pursuant to the Arbitration Rules of the KCAB shall

SUPPLEMENTARY PROVISIONS

1.(effective date) These Rules shall be effective on and from September 1, 2011.

2.(transitional measures for ongoing Arbitrations) Where the arbitration proceeding has commenced prior to Sep- tember 1, 2011, the former rules will apply. However, the parties may agree to apply these Rules after Septem- ber 1, 2011 without affecting the validity of the arbitra- tion proceedings held prior to this date.

3.(Applicability) These Rules shall apply to arbitrations in which an arbitration agreement under Article 3 of these Rules was entered into by the parties after the effective date above.

APPENDIX 1

REGULATIONS  ON  FILING  FEES  AND  ADMINISTRA- TIVEFEES

ARTICLE 1. FILING FEES

1.When submitting a Request, the Claimant shall pay a filing fee of 1,000,000 Korean won. However, the Secre- tariat may, at its discretion, exempt the party from pay- ing the filing fee where the claimed or counterclaimed amount is below a specific amount as determined by the Secretariat.

2.If the Claimant fails to pay the filing fee, the KCAB shall not proceed with the arbitration.

3.The filing fee is not refundable.

4.The above provisions shall apply to any counterclaim.

ARTICLE 2. ADMINISTRATIVE FEES

1.The parties shall pay the Secretariat administrative fees based on the amount of the dispute as specified in fol- lowing Schedule.

(a)The maximum amount of the administrative fees shall be 150,000,000 Korean won.

(b)The Secretariat may, at its discretion, reduce the ad- ministrative fees payable by the parties.

2.For the purpose of determining the amount in dispute:

(a)claims and counterclaims shall be added together;

(b)amount claimed for interest shall not be taken into account, unless the interest claim exceeds the princi- pal amount claimed, in which case the interest claim alone shall be considered in calculating the amount in dispute; and

(c)if the amount in dispute is not clear, the Secretariat may determine the amount of the dispute taking ac- count of all relevant circumstances.

3.In case where the Request for Arbitration has been with- drawn or the case has been settled between the parties before issuance of the final Award, the Secretariat may refund a part of the administrative fees as determined in accordance with its internal regulation.

APPENDIX 2

REGULATIONS ON ARBITRATOR’S FEES AND EXPENSES

ARTICLE 1. ARBITRATOR’S FEES

1.Unless agreed otherwise, the amount of the remunera- tion for an arbitrator or arbitrators shall be determined by the Secretariat between the maximum amount and the minimum amount specified in the following sched- ule, taking into account the nature of the dispute, the amount in dispute, the time spent by an arbitrator or arbitrators and other relevant factors.


2.For the purpose of determining the amount in dispute, Article 2 (2) of Appendix I shall apply.

3.In the case where the Request for Arbitration has been withdrawn or the arbitration has been settled between the parties before issuance of the final Award, the Sec- retariat may pay the arbitrator’s fees as determined in accordance with its internal regulation.

4.In the case of expedited Procedures where the amount in dispute including the claimed and counterclaimed amount is below 200,000,000 Korean won, and an arbi- trator is appointed by the Secretariat, the arbitrator shall receive the arbitrator’s fees as determined to be appropri- ate by the Secretariat.

ARTICLE 2. ARBITRATOR  EXPENSES

Arbitrator expenses consist of actual expenses of an arbitra- tor incurred to the extent required for arbitration proceed- ings, including expenses for travel, hotels, meals and other expenses, and which are defined as necessary expenses in- curred during the proceedings.

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