EXPROPRIATION OF FOREIGN INVESTMENT FROM THE PERSPECTIVE OF THE STABILIZATION CLAUSE AND THE ADMISSIBILITY OF ARBITRATION OF INVESTMENT DISPUTES IN SOUTH KOREA AND JAPAN: SOME ASPECTS
( Pp. 49-58)

More about authors
Ksenia M. Belikova
Kutafin Moscow State Law University
Moscow, Russian Federation
Abstract:
The article touches upon approaches provided by 1947 Constitutions of South Korea and Japan and 1998 Korean Foreign Investment Promotion Act No. 5559 (as amended 2010), Japanese 1949 Foreign Exchange and Foreign Trade Act No. 228 with regard to legal guarantees and protection of foreign investors` rights against expropriation (requisition) of their investments and standards of intergovernmental agreements the Republic of Korea and Japan (including 2001 Korean Model Bilateral Investment Treaty) on this matter. At the same time, the author traces the evolution of approaches to the provision of guarantees against expropriation in Korea, depending on the increase in its investment abroad. The guarantee against expropriation is linked by the author to the consolidation of the stabilization clause and the right of arbitral protection of investors violated rights (by way of ICSID and national arbitration institutions of Korea and Japan - Korean Commercial Arbitration Board (KCAB) and Japan Commercial Arbitration Association (JCAA). The attitude towards arbitration in these countries is assessed, taking into account a number of arbitration cases in which the Republic of Korea participated and the desire to develop national arbitration of both countries under study. The study is based on such methods of scientific knowledge as: general scientific dialectical, historical and of a comparative legal analysis. The author proceeds from the subjective-objective predetermination of processes and phenomena of the surrounding world. The novelty of the study consists in the complex consideration of three mentioned guarantees of investors' rights protection through the prism of national and international law. As a result of the study, the author came to the conclusion, in particular, that confidence to the international institutional structures for the protection of investors' rights (e.g., ICSID) formed initially in Korea, converted by now into a more balanced approach, seeking to develop national arbitration. In turn, Japan, where traditionally, judicial settlement, including with regard to investment disputed, prevails over the arbitration, and which did not face such a situations in ICSID that Korea faced, is also seeking to develop its national arbitration, in order to be competitive in this field.
How to Cite:
Ksenia M.B., (2019), EXPROPRIATION OF FOREIGN INVESTMENT FROM THE PERSPECTIVE OF THE STABILIZATION CLAUSE AND THE ADMISSIBILITY OF ARBITRATION OF INVESTMENT DISPUTES IN SOUTH KOREA AND JAPAN: SOME ASPECTS. Sociopolitical Sciences, 4 => 49-58.
Reference list:
Akhmadova M. A. Garantii zashchity interesov inostrannykh investorov v YUzhnoy Koree: nekotorye aspekty. // Sovremennyy yurist. - 2019. - 2(29). - S. 112-124.
Belikova K. M. Pravovye garantii zashchity investora po novomu Zakonu Ob inostrannykh investitsiyakh 2019 g. i v mezhpravitel stvennykh soglasheniyakh Kitaya: sravnenie s nekotorymi podkhodami prava Rossii. // Probely v rossiyskom zakonodatel stve. YUridicheskiy zhurnal. - 2019. - № 4.
Belikova K. M., Akhmadova M. A. Pravovaya priroda investitsionnykh sporov i nekotorye aspekty protsedury ikh razresheniya investorami iz stran BRIKS v MTSUIS. // Vestnik arbitrazhnoy praktiki. - 2018. - № 2(75). - S. 67-78.
Gavrilov V. V. Pravovoe regulirovanie deyatel nosti mezhdunarodnogo kommercheskogo arbitrazha v Respublike Koreya. // Moskovskiy zhurnal mezhdunarodnogo prava. - 2001. - № 3. - S. 109-128.
Moroz I. Contract claim i BIT claim : mozhno li usidet na dvukh stul yakh v mezhdunarodnom investitsionnom arbitrazhe // YUrist Zakon. - 2016. - № 36 (30.09.2016-06.10.2016). URL: http://agalawyers.org /files /files/AGA 20Partners.pdf (data obrashcheniya: 13.07.2019)
Odit M., Forto M. Investitsionnyy arbitrazh bez dvustoronnikh investitsionnykh dogovorov: navstrechu arbitrazhnomu rassmotreniyu investitsionnykh sporov na osnove obychaya Per. s angl. Rogozinoy A.A. URL: https://wiselawyer.ru/poleznoe/83057-investicionnyj-arbitrazh-dvustoronnikh-investicionnykh-dogovorov-navstrechu-arbitrazhnomu (data obrashcheniya: 14.07.2019)
Rusakova E. P. Mezhdunarodnyy kommercheskiy arbitrazh v YAponii. Uchebn. posob. - M.: RUDN, 2016 - 79 s.
Rusakova E. P. Rassmotrenie kommercheskikh sporov YAponskoy kommercheskoy arbitrazhnoy assotsiatsiey. // Vestnik Rossiyskogo universiteta druzhby narodov. Ser. YUridicheskie nauki . - 2011. - № 3. - S. 107-114.
Sitkareva E. V. Novye arbitrazhnye zakony YUzhnoy Korei. // Problemy ekonomiki i yuridicheskoy praktiki. - 2019. - № 3. - S. 231-236.
Soglashenie mezhdu Pravitel stvom SSSR i Pravitel stvom Respubliki Koreya o pooshchrenii i vzaimnoy zashchite kapitalovlozheniy (zaklyucheno v g. Moskve 14.12.1990). URL: http://www.consultant.ru /cons/cgi/ online.cgi req doc base LAW n 128171 fld 134 dst 1000000001,0 rnd 0.2039332247463541 020063693322001486 (data obrashcheniya: 27.06.2019)
Soglasheniya mezhdu Pravitel stvom Rossiyskoy Federatsii i Pravitel stvom YAponii o pooshchrenii i zashchite kapitalovlozheniy (zaklyucheno v g. Moskve 13.11.1998). URL: http://www.consultant.ru /cons/cgi/ online.cgi req doc base LAW n 125735 fld 134 dst 100001,0 rnd 0.08311139929187616 05879499826070895 (data obrashcheniya: 27.06.2019)
About KSAB. Introduction. URL: http://www.kcab.or.kr /jsp/kcab eng/kcab/kcab 111 ex.jsp (data obrashcheniya: 14.07.2019)
Act on Costs of Civil Procedures Act No. 40 of 1971, as amended by of Act No. 96 of 2013 . URL: http://www.japaneselawtranslation.go. jp/law/detail/ id 3327 vm 04 re 02 (data obrashcheniya: 14.07.2019)
Agreement between the government of the Republic of Korea and the government of the United Kingdom of Great Britain and Northern Ireland for the promotion and protection of investments (Signed at Seoul March 4, 1976, Entered into force March 4, 1976, in force). URL: https://investmentpolicy.unctad.org /international-investment-agreements/treaty-files/1843/download (data obrashcheniya: 15.07.2019)
Arbitration Act (Act No. 6083, Dec. 31, 1999, as amended by Act No. 14176, May 29, 2016). URL: https://elaw.klri.re.kr/kor service/lawView.do lang ENG hseq 38889 joseq JO0003000 (data obrashcheniya: 13.05.2019)
Arbitration Industry Promotion Act No. 14471, Dec. 27, 2016. URL: https://elaw.klri.re.kr/eng service/law View.do hseq 42311 lang ENG (data obrashcheniya: 13.05.2019)
Civil Execution Act for enforcement Act No. 4 of March 30, 1979 . URL: http://www.japaneselawtranslation.go.jp/law /detail main re vm 02 id 70 (data obrashcheniya: 14.07.2019)
Civil Procedure Act No. 547 of April 4, 1960, as last amended by Act No. 9171 of December 26, 2008. URL: http://www.moleg.go.kr /english/korLawEng pstSeq 52676 pageIndex 44 (data obrashcheniya: 13.05.2019)
Domestic Arbitration Rules 2016. URL: http://www.kcab.or.kr /jsp/kcab eng/law/law 03 ex.jsp (data obrashcheniya: 14.07.2019)
Foreign Exchange and Foreign Trade Act Act No. 228 of December 1, 1949. URL: http://www.cas.go.jp/jp /seisaku/hourei/data/FTA.pdf (data obrashcheniya: 04.02.2019)
Foreign Investment Promotion Act No. 5559 of 16 of September (amended by Act No. 10232, April 5, 2010) (Republic of Korea). URL: www.moleg.go.kr/File Download.mo flSeq 34257 (data obrashcheniya: 13.04.2018)
ICSID Case No. ARB/12/37. URL: https://www.italaw.com/cases /2022 (data obrashcheniya: 13.07.2019).
Japan Code of Civil Procedure Act No. 109 of 1996, as amended by Act No. 36 of 2011 . URL: http://www.japaneselawtranslation.go. jp/law/detail/ id 2834 vm 02 re 02 (data obrashcheniya: 14.07.2019)
Katja Gehne, Romulo Brillo. Stabilization Clauses in International Investment Law: Beyond Balancing and Fair and Equitable Treatment. Marz 2017. - 57 p. URL: http://telc.jura.uni-halle.de/sites/default/files/Beitraege TWR/Heft 20143.pdf (data obrashcheniya: 14.07.2019)
KCAB International Arbitration Rules 2016. URL: http://www.kcab.or.kr/jsp/kcab eng/law/law 02 ex.jsp (data obrashcheniya: 14.07.2019)
Neil Q. Miller, Holly Stebbing. Securing investment stability in energy and natural resources projects. // Contractual protections available to international investors. September 2016. URL: https://www.nortonro-sefulbright.com/en /knowledge/publications/3ba2a960/contractual-protections-available-to-international-investors (data obrashcheniya: 14.07.2019)
Occupy FTA, Korean Supreme Court Opposing ISDS in KorUS FTA , (2 August 2016), online: lt;occupyfta.blogspot.kr/ 2016/08/koreansupreme-court-opposing-isds-in.html gt;. TSit. po: Younsik Kim. Op. cit. P. 15.
Reform of the JCAA Arbitrations Rules: Three Sets of Rules in Response to All Business Needs. / Ed. by JCAA. 1 January 2019. URL: http://www.jcaa.or.jp/e /arbitration/docs/0341aa73476af846bb61177756586608fbebebe3.pdf (data obrashcheniya: 14.07.2019)
Republic of Korea. URL: https://www.arnoldporter.com /en/services/experience/republic-of-korea/lsfkeb-holdings-sca-and-others-v-republic-of-kor (data obrashcheniya: 13.07.2019).
See H-T Shin, Republic of Korea in C Brown, ed, Commentaries on Selected Model Investment Treaties (Oxford: Oxford University Press, 2013), at 413. TSit. po: Younsik Kim. Op. cit. P. 9.
Selection of Arbitration Rules. URL: http://www.kcab.or.kr/jsp /kcab eng/arbitration/arbi 311 ex.jsp (data obrashcheniya: 14.07.2019)
Shinya Tago and Yuuki Mutou. Investing in Japan. 01-Feb-2019. URL: https://uk.practicallaw.thomsonreuters.com /7-596-7228 transition Type Default contextData (sc.Default) first Page true bhcp 1 (data obrashcheniya: 13.07.2019)
Soo Choi, Seung Jong Kim, Hyung Chan Lee, Joon Park, Hae Woong Ryu. 2013 Modularization of Korea s Development Experience: The Expropriation and Compensation System in Korea. / Korea Research Institute for Human Settlements. / Supervised by Ministry of Land, Infrastructure and Transport, Republic of Korea. 2014/ - 126 p. URL: https://www.kdi.re.kr/kdi eng/publications/publication view.jsp pub no 13682 (data obrashcheniya: 14.07.2019)
The Constitution of Japan. Promulgated on November 3, 1946. Came into effect on May 3, 1947. URL: https://japan.kantei.go.jp /constitution and government of japan/constitution e.html (data obrashcheniya: 10.07.2019)
The Constitution of the Republic of Korea. Jul. 17,1948 (as amended Oct. 29, 1987). URL: http://elaw.klri.re.kr/eng service/lawView.do hseq 1 lang ENG (data obrashcheniya: 13.05.2019).
Yoon, Yon Jong. Pursuit of Climate Change Mitigation under International Investment Law: Republic of Korea as a Global Test Bed. A Master s Thesis (Department of Law) / Graduate School of Yonsei University. June 2016. P. 38. URL: https://papers.ssrn.com/sol3/Delivery.cfm/ SSRN ID29 70272 code2650605.pdf abstractid 2921787 mirid 1 (data obrashcheniya: 13.07.2019)
Younsik Kim. Investor-state arbitration in South Korean international trade policies: an uncertain future, trapped by the past. Investor-state arbitration Series. Paper No. 15 - November 2016. P. 3. URL: https://www.cigionline.org /sites/default/files/documents/ISA 20Paper 20No.15.pdf (data obrashcheniya: 13.07.2019)