Some Perspectives on the North-South Arbitration Commission Scheduled on the Two Korea's Agreed Minutes

남북상사중재위원회 구성$\cdot$운영 활성화 방안

North Korea and South Korea agreed to refer their investment disputes to arbitration by adopting' Agreed Minutes on Procedures of Settlement of Commercial Disputes' on 16th December 2000. According to the Agreed Minutes, the two Koreas were to establish an arbitration commission within 6 months after the Agreed Minutes had been signed. In 2002, North Korea enacted laws to draw interest of foreign tourists to Mountain Kumgang and to boost investment into the region of Kaesung as it provided in those laws that commercial disputes should be settled by arbitration or judicial procedures. In October 2003, the two Koreas succeeded in adopting another Agreed Minutes as to the establishment and functioning of North-South Arbitration Commission. The fact that the two Koreas have agreed to establish an arbitration commission is meaningful since they are leading their lives quite differently in political, social, and economic sense for more than a half century. Although there still remain doubts as to the North Korean policy on nuclear matters, an arbitration commission could be a cornerstone for the set-up of the dispute settlement system between the two Koreas and a great help for investors from South Korea to pursue their possible legal claims as North Korea is eager to invite South Korean businessmen and other foreign investors to invest in its special economic areas. According to the Agreed Minutes of 2003, the two Koreas are going to adopt procedural rules for the arbitration commission. It will be a great challenge for them to agree on specific issues as to the operation of the arbitration commission. They have to set up a rester of arbitrators respectively and may have to enact or revise their own arbitration laws and rules reflecting the Agreed Minutes of 2000 and 2003. It is quite welcome that the two Koreas have agreed to set up an arbitration commission rather than resort to political or diplomatic means to settle their disputes. The success of the arbitration system between the two Koreas will make sure the safety of investment environment in the northen part of the Korean Peninsula and will bring the peace to the Korean peninsula earlier than expected.