Settlement, Mediation, Conciliation, and Arbitration in International Arbitration

a) Voluntary settlement or settlement through mediation or conciliation

After a request for arbitration has been filed, the disputing parties may reach a settlement agreement on their own initiative or through mediation or conciliation by the arbitral tribunal. The arbitral tribunal may mediate or conciliate the dispute before making an award, and shall mediate or conciliate the dispute at the request or with the consent of both disputing parties. Mediation or conciliation proceedings may be conducted by the arbitral tribunal, an arbitrator who is or is not a member of the arbitral tribunal, or a mediator/conciliator.

Mediation or conciliation proceedings shall be terminated at the request of either disputing party or if the arbitral tribunal, mediator, or conciliator considers that further mediation or conciliation efforts will be futile. In such a case, an award shall be made in a timely manner.

b) Withdrawal, award based on settlement agreement, or consent award

Where the disputing parties reach a settlement agreement either on their own initiative or through mediation or conciliation by the arbitral tribunal, mediator, or conciliator, the request for arbitration may be withdrawn, or the disputing parties may request the arbitral tribunal, mediator, or conciliator to prepare a consent award or make an award based on the settlement agreement.

A consent award shall expressly set forth the claims, reliefs sought, and counterclaim, if any, of and the terms of the settlement agreement reached by the disputing parties. A consent award shall be signed by the arbitrators or sole arbitrator, sealed by the arbitration commission, and served on both disputing parties, and shall become legally enforceable upon service on and signature by both disputing parties.

After an agreement is reached through mediation or conciliation, the arbitral tribunal will prepare a consent award or make an award based on the agreement reached. A consent award is equally binding in law as an arbitration award, and the provisions of the law applicable to arbitration award are also applicable to consent award.

A consent award must expressly set forth the claims of and the agreement reached by the disputing parties, signed by the arbitrators or sole arbitrator, sealed by the arbitration commission, and served on both parties.

A consent award shall become legally enforceable upon service on and signature by both parties.

Where conciliation or mediation fails, the arbitral tribunal shall continue the arbitration proceedings and make an award in a timely manner. In the subsequent arbitration proceedings, neither disputing party may invoke any statement, opinion, view, proposal, proposition, admission/denial, acceptance/refusal, etc., made, taken, or expressed by either disputing party or the arbitral tribunal, mediator, or conciliator in the process of negotiation, mediation, or conciliation.

c) Renege

Where either party reneges on the settlement agreement after the request for arbitration has been withdrawn, he may file a request for arbitration according to the arbitration agreement. Where either party reneges on the consent award before signing it upon receipt, the arbitral tribunal shall make an award in a timely manner.

As discussed above, a third party who is under the same arbitration agreement, interested in the dispute being arbitrated, or otherwise related to the case, may join arbitration, mediation, or conciliation at the request of a disputing party or such third party or joint request of both disputing parties. For detailed provisions pertaining to joinder, please refer to the applicable arbitration rules.