Alternate Dispute Resolution Law at North Korea
North Korea has established a legal framework for resolving foreign economic disputes through arbitration, known as the "Foreign Economic Arbitration Law of the Democratic People’s Republic of Korea," enacted in 2014. This law provides a structured mechanism for parties engaged in foreign economic activities to settle disputes without resorting to traditional court proceedings.
Key Features of North Korea’s Foreign Economic Arbitration Law
1. Arbitration Committees
The law designates specific arbitration committees to handle various types of foreign economic disputes:
Choson International Trade Arbitration Committee: Deals with disputes related to trade, investment, and labor.
Choson Maritime Affairs Arbitration Committee: Handles disputes arising from maritime economic activities.
Choson Computer Software Arbitration Committee: Resolves disputes concerning computing software.
These committees are authorized to resolve disputes through arbitration, which is considered a final and binding decision.
2. Arbitration Agreements
Parties involved in foreign economic activities may agree to resolve disputes through arbitration. Such agreements must be in writing and can be included in contracts or made separately. Even oral agreements can be recognized if documented through correspondence or other means.
The arbitration process is designed to be objective, scientific, fair, and efficient. Arbitrators are selected based on mutual agreement between the parties or, if necessary, appointed by the arbitration committee. The process includes provisions for temporary measures, evidence gathering, and hearings. Arbitral awards are issued in writing and are enforceable, with provisions for correction, interpretation, or supplementation if needed.
4. Legal Effect and Enforcement
Arbitral awards are legally binding and must be executed promptly. If a party fails to comply, the other party can apply to a court or relevant authorities for enforcement. The law outlines specific measures for enforcement, including asset seizure and penalties. Additionally, there are provisions for recognizing and enforcing foreign arbitral awards in North Korea, subject to certain conditions.
5. Conciliation
The law also provides for conciliation as a method of dispute resolution. A conciliation decision holds the same legal effect as an arbitral award, emphasizing the state's preference for amicable settlements.
North Korea's Foreign Economic Arbitration Law offers a structured and state-backed approach to resolving international economic disputes. While it emphasizes arbitration and conciliation, the legal framework ensures that disputes are handled efficiently and in accordance with the state's legal standards.
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