The Ministry of Justice announced on November 11 that it successfully held a series of international seminars aimed at improving the Investor-State Dispute Settlement (ISDS) system in Vienna, Hong Kong, and Seoul throughout October.
These events were designed to discuss key issues surrounding the ISDS system with experts from around the world and to enhance South Korea's role in the formation of international norms. More than 280 representatives from international organizations, government officials, academia, and global legal practitioners attended, showing significant interest.
The first seminar took place on October 13 at the United Nations headquarters in Vienna as a side event of the United Nations Commission on International Trade Law (UNCITRAL) Working Group III meeting.
Focusing on 'Counterclaims in ISDS Reform,' Yang Jun-yeol, a prosecutor in the Ministry of Justice's International Investment Disputes Division, proposed three criteria for allowing counterclaims by the respondent state against investors: 'consent,' 'relevance,' and 'substantive grounds.' Participants regarded this as a practical alternative for balancing rights between states and investors.
The second seminar was held on October 21 at the Hong Kong International Arbitration Centre, addressing 'State Scope and State Responsibility of State-Owned Enterprises.'
Beginning with a keynote speech by Shin Hee-taek, a former professor at Seoul National University's Law School, the seminar featured in-depth discussions with renowned international lawyers on the extent to which actions of public enterprises or institutions can be attributed to the state. Experts agreed that strict scrutiny based on actual international law provisions should be applied beyond mere ownership relationships.
Finally, on October 29, a seminar at the Korean Commercial Arbitration Board in Seoul discussed the proposal for establishing a 'Permanent Investment Tribunal' currently under consideration by UNCITRAL to overcome the limitations of existing ad hoc arbitration tribunals.
Participants, including Lee Jae-min, a professor at Seoul National University's Law School, and Max Scherer, chair of the London Court of International Arbitration (LCIA), emphasized the need for detailed mechanisms to ensure consistency and coherence in rulings with the introduction of a permanent tribunal.
The Ministry of Justice assessed that these seminars across three countries elevated its policy stature in the field of international dispute resolution. A ministry official stated, "We will continue to actively participate in discussions on ISDS reform in the international community to harmonize the state's legitimate policy authority with investor protection through legal diplomacy."
* This article has been translated by AI.
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