• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.57
• /
• pp.61-78
• /
• 2013

The purpose of this study is to clarify the standard of fair and equitable treatment. Although most international investment treaties prescribe fair and equitable treatment that is the obligation to provide fair and equitable treatment to foreign investor, there is no clear definition and specific elements of fair and equitable treatment. Through the arbitral award cases we can find that tribunals have interpreted to include six principles; Due process & Protection from denial of justice, Good faith, Reasonableness & Nondiscrimination, Compliance with contractual obligation, Full protection and security, Transparency & Protection of the investor's legitimate expectations. This study suggest that host countries and investors focus on international trends concerning investment disputes in order to avoid future disputes. So future disputes can be prevented and prepared in advance.

• Journal of Arbitration Studies
• /
• v.22 no.3
• /
• pp.187-213
• /
• 2012

The purpose of this article is to examine Fair and Equitable Treatment in International Investment Agreements. Most BITs and other investment treaties provide for FET of foreign investments. Today, this concept is the most frequently invoked standard in investment disputes. It is also the standard with the highest practical relevance: a majority of successful claims pursued in international arbitration are based on a violation of the FET standard. The concept of FET is not new but has appeared in international documents for some time. Some of these documents were nonbinding others entered into force as multilateral or bilateral treaties. Considerable debate has surrounded the question of whether the FET standard merely reflects the internationalminimum standard, as contained in customary international law, or offers an autonomous standard that is additional to general international law. As a matter of textual interpretation, it seems implausible that a treaty would refer to a well-known concept like the "minimum standard of treatment in customary international law" by using the expression "fair and equitable treatment." Broad definitions or descriptions are not the only way to gauge the meaning of an elusive concept such as FET. Another method is to identify typical factual situations to which this principle has been applied. An examination of the practice of tribunals demonstrates that several principles can be identified that are embraced by the standard of fair and equitable treatment. Some of the cases discussed clearly speak to the central roles of transparency, stability, and the investor's legitimate expectations in the current understanding of the FET standard. Other contexts in which the standard has been applied concern compliance with contractual obligations, procedural propriety and due process, action in good faith, and freedom from coercion and harassment. In short, meeting the investor's central legitimate concern of legal consistency, stability, and predictability remains a major, but not the only, ingredient of an investment-friendly climate in which the host state in turn can reasonably expect to attract foreign investment.

• Journal of the Korean Institute of Navigation
• /
• v.17 no.4
• /
• pp.1-21
• /
• 1993

The purpose of this paper is to search for reasonable and fair principles applicable to the delimitation of the Exclusive Economic Zone(which is called the EEZ, hereinafter) around the Korean Peninsula th-rought the comprehensive study of maritime boundary, which is one of the most important issues in the law of the Sea. So far, the sea has been exploited for activities such as fishery, transport and military stratedy, and en-vironmental policy and so on. From this time on, however, it becomes important to us as the major trea-sure-house of various resources which will be developed and used for diversified purposes. For these rea-sons, nowadays, more and more countries of the world are competing to secure waters as much as possible within their jurisdiction. And the regime of the EEZ was created as a result of this international trend. At last, it has been institutionalized as the 200-mile EEZ of a legal notion in the Convention on the Law of the Sea, which was adopted at the Third United Nations Conference on the Law of the Sea, in Jamaica on December 10, 1982. In adapting to this EEZ institution, Korea is faced with several complicated problems as it is bounded on three sides by the sea and all of its neighboring countries such as the PRC, the DPRK, Japan, Russia etc are less than 400 miles away between opposite countries. Therefore, when trying to delimit the boun-dary for the EEZ, it appears necessary to analyze applicable principles and rules of international law for delimitation mainly through the Convention on the Law of the Sea, and studies the trends of actual State practices and recent international precedents. It is hoped that such knowledge will enable Korea to secure sufficient resources and other sovereign rights without conflicting with the neighboring countries concer-ned. For the achievement of the above mentioned object. I analyzed the necessities of the establishment of the EEZ in Korea, the difficulties and practices of Korea's neighbors, and the changes and forthcoming trends in Korea's relations with its neighbors concerned on the basis of the general explanation of the EEZ regime. In conclusion, it is my opinion that for the establishment of the EEZ delimitation which neighbors around the Korean Peninsula should be applied reasonable and equitable principles considering the rele-vant circumstances which characterize the area definitely as well as the UN Convention on the Law of the Sea, 1982.

• The Korean Journal of Air & Space Law and Policy
• /
• v.27 no.2
• /
• pp.143-166
• /
• 2012

This paper deals in depth with airline over-booking practices and legal questions therefrom in the light of public interests. Chapter I as an introduction gives clear ideas of what are the over-booking, fact-revealing current state of denied boarding and nature of the problems inherent but veiled in those practices. In Chapter II, it is reviewed whether legal instruments for DBC(Denied Boarding Compensation) are adequately equipped for airline passengers in R. O. K. Upon the results of the review that international law to which Korea is a party, domestic law and administrative preparedness for the DBC are either null or virtually ineffective, the Chapter by contrast illustrates how well the U. S. and the E. U. safeguard civil rights of their passengers from such an 'institutionalized fraud' as the over-booking. In Chapter III on which a main emphasis lies, it is examined whether the over-booking practice constitutes a criminal offense: Fraud. In section 1, the author identifies actus reus and mens rea required for fraud then compares those with every aspect of the over-booking. In conjunction with the structural element analysis, he reviews the Supreme Court's precedents that lead the section into a partial conclusion that the act of over-booking judicially constitutes a crime of fraud. Despite the fulfillment of drawing up an intended answer, the author furthers the topic in section 2 by arguing a dominant view from Korean academia taking opposite stance to the Supreme Court. The commentators assert, "To consummate a crime of fraud, there must be property damage of the victim." For this notion correlates with a debate on legally protected interest in criminalization of fraud, the section 2 shows an argument over 'Rechtgut' matters specific to fraud. The view claims that the Rechtgut comes down rather to 'right to property' than 'transactional integrity' or 'fair and equitable principles'. However, the section concludes that the later values shall be deemed as 'freedom in economic decision-making' which are the benefit and protection of the penal law about fraud. Section 3 demonstrates the self-contradiction of the view as it is proved by a conceptual analysis that the infringement on freedom in economic decision-making boils down to the 'property damage'. Such a notion is better grounded in section 4 by foreign court decisions and legislation in its favour. Therefore, this paper concludes that the airline's act of over-booking is very likely to constitute fraud in both theory and practice.

• Journal of Arbitration Studies
• /
• v.24 no.2
• /
• pp.33-52
• /
• 2014

Although climate change is a global scale question, some concerns have been raised that principles of investment arbitration may not adequately address the domestic implementation of climate change measures. A recent ICSID investment arbitration of Vattenfall v. Germany with regard to the investor's alleged damages from the phase-out of nuclear plants is a salient climate change case. The 2005 Kyoto Protocol was made to reduce greenhouse gas emissions and it provides a number of flexible mechanisms such as Joint Implementation (JI) and Clean Development Mechanism (CDM). Implementation of the Kyoto Protocol allows dispute settlement through investor-state arbitration. Any initiation of stricter emission standards can violate the prohibition on expropriations in investment agreements, regardless of the measures created to reduce greenhouse gas emissions. The effect-based expropriation doctrine can charge changes to existing emission standards as interference with the use of property that goes against the legitimate expectation of a foreign investor. In regulatory chill, threat of investor claims against the host state may preclude the strengthening of climate change measures. Stabilization clauses also have a freezing effect on the hosting state's regulation and a new law applicable to the investment. In the fair and equitable standard, basic expectations of investors when entering into earlier carbon-intensive operations can be affected by a regulation seeking to change into a low-carbon approach. As seen in the Methanex tribunal, a non-discriminatory and public purpose of environmental protection measures should be considered as non-expropriation in the arbitral tribunal unless its decision would intentionally impede a foreign investor's investment.