From KCAB to Kleros: Rethinking Legitimacy in Private Dispute Resolution Mechanisms

Arbitration has evolved through practical usage rather than formal codification, with legitimacy arising from autonomous decision-making rooted in commercial custom and community recognition. While this pragmatism remains central to both conventional arbitration and emerging decentralized platforms such as Kleros and DAOs, increasing judicialization threatens flexibility and efficiency. Mediation, notably through the Singapore Convention, has gained traction as an alternative, yet risks its own formalization. This paper explores how legitimacy in private dispute resolution is being redefined through technological innovation. Specifically, it examines the institutional reforms undertaken by the Korean Commercial Arbitration Board (KCAB), including the enactment of its International Mediation Rules in 2024 and its co-hosted conference on electronic arbitration in 2025. These developments are positioned against the rise of blockchain-driven platforms, highlighting a shift from court-centered processes to participatory, decentralized models. By analyzing KCAB’s evolving framework and comparing it to innovations like smart contracts and community-based adjudication, this study underscores the potential for reconfiguring legitimacy beyond traditional legal systems, toward shared norms and technological autonomy.