한-미 FTA 투자분쟁 중재제도 연구

Arbitral System for Settlement of Investment Disputes under the Korea-US FTA

On February 3, 2006, Trade Representatives of Korea and USA announced their intent to negotiate a free trade agreement(FTA). On April 2, 2007, Korea and the United States concluded this historic FTA but at this time, the KORUS FTA, as this FTA is known, is currently not in force. It will need to be cleared through both countries' legislatures prior to being fully implemented by both countries. The KORUS FTA is a comprehensive trade agreement that will eliminate tariffs and other barriers to trade and investments, and strengthen economic ties between two countries. However, the KORUS FTA has been one of the most contentious issues in Korean society because it is expected to have a tremendous impact on Korean economy. The purpose of this paper is to study the arbitral system on investment dispute under the KORUS FTA. The Chapter 11 of the KORUS FTA provides for the Investor-State Dispute Settlement. Under the relevant provisions, the claimant may submit to arbitration a claim against the respondent in the event that an investment dispute cannot be settled by consultation and negotiation. The investment dispute is quite different from an ordinary commercial dispute arising from commercial transactions in view of disputing parties, applicable laws and rules, etc. Therefore, it is a problem of vital importance that the parties in dispute under the KORUS FTA should understand and cope with the settlement mechanism of the investment disputes arising therefrom.