• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.69
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• pp.261-301
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• 2016

Recently the abusive calls on on-demand bonds have been a critical issue among many engineering and construction companies in Korea. On-demand bond is referred to as an independent guarantee in the sense that the guarantee is independent from its underlying contract although it was issued based on such underlying contract. For this reason, the issuing bank is not required to and/or entitled to look into whether there really is a breach of underlying contract in relation to the call on demand-bonds. Due to this kind of principle of independence, the applicant has to run the risk of the on demand bond being called by the beneficiary without due grounds. Only where the call proves to be fraudulent or abusive in a very clear way, the issuing bank would not be obligated to pay the bond proceeds for the call on on-demand bonds. In order to prevent the issuing bank from paying the proceeds under the on-demand bond, the applicant usually files with its competent court an application for injunction prohibiting the beneficiary from calling against the issuing bank. However, it is in practice difficult for the applicant to prove the beneficiary's call on the bond to be fraudulent since the courts in almost all the jurisdictions of advanced countries require very strict and objective evidences such as the documents which were signed by the owner (beneficiary) or any other third party like the engineer. There is another way of preventing the beneficiary from calling on the bond, which is often utilized especially in the United Kingdom or Western European countries such as Germany. Based upon the underlying contract, the contractor which is at the same time the applicant of on-demand bond requests the court to order the owner (the beneficiary) not to call on the bond. In this case, there apparently seems to be no reason why the court should apply the strict fraud rule to determine whether to grant an injunction in that the underlying legal relationship was created based on a construction contract rather than a bond. However, in most jurisdictions except for United Kingdom and Singapore, the court also applies the strict fraud rule on the ground that the parties promised to make the on-demand bond issued under the construction contract. This kind of injunction is highly unlikely to be utilized on the international level because it is very difficult in normal situations to establish the international jurisdiction towards the beneficiary which will be usually located outside the jurisdiction of the relevant court. This kind of injunction ordering the owner not to call on the bond can be rendered by the arbitrator as well even though the arbitrator has no coercive power for the owner to follow it. Normally there would be no arbitral tribunal existing at the time of the bond being called. In this case, the emergency arbitrator which most of the international arbitration rules such as ICC, LCIA and SIAC, etc. adopt can be utilized. Finally, the contractor can block the issuing bank from paying the bond proceeds by way of a provisional attachment in case where it also has rights to claim some unpaid interim payments or damages. This is the preservative measure under civil law system, which the lawyers from common law system are not familiar with. As explained in this article, it is very difficult to block the issuing bank from paying in response to the bond call by the beneficiary even if the call has no valid ground under the underlying construction contract. Therefore, it is necessary for the applicants who are normally engineering and construction companies to be prudent to make on-demand bonds issued. They need to take into account the creditability of the project owner as well as trustworthiness of the judiciary system of the country where the owner is domiciled.

• Journal of Arbitration Studies
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• v.27 no.4
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• pp.115-131
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• 2017

The purpose of this paper is to consider key issues and to categorize international arbitrations on industrial significance. Thus this study focused on synthesizing industrial significance, retaining international competitiveness, and securing national implications of international arbitration as a legal service trade system. To obtain these goals, the liberalization of international arbitration proxy service, invitation of international arbitration board regional offices such as PCA to AAA-ICDR, and drawing of international mediation institutions to invigorate the legal service market should be exerted. To revitalize the international arbitration, it would be renounced the control rights of economy-related disputes with internationalism while policies should be improved to enhance the execution of arbitration agreements and awards. It is emphasized the necessities of the process through the institutional mediation agency to resolve more court mediation and international dispute cases, and to handle international arbitration cases after training professional legal experience through cooperation with international arbitration boards such as LCIA, ICC, AAA, and PCA. Ultimately, to revitalize the international arbitration, the industrial significance of arbitration should be analyzed and the critical industrial influence of arbitration such as in the semiconductor, petrochemistry, and ICT sectors should be expanded to gain the competitiveness of the global legal service market with the assistance of institutional complementary measures.

• The Korean Journal of Air & Space Law and Policy
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• v.20 no.1
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• pp.211-253
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• 2005

Recently, the Korean Supreme Court released two important decisions concerning damages for the pain and suffering from Aircraft noise. The local people who are living near the Air Force practice site at Maehyang-ri and the Kimpo International Airport brought lawsuits against the Korean government requesting damages for their financial loss from the severe noise and the damages for their pain and suffering. Plaintiffs alleged that they suffered physical malfunctions, extreme disturbances and the reduction of property values from the extreme noises which were daily repeated. District Court of Seoul Province did not allow plaintiffs all but the damages for pain and suffering. Plaintiffs could not prove the causation between their financial loss and the noise. The Supreme Court confirmed the lower court's decision. Article V of the National Compensation Act (analogous to the Federal Tort Claims Act of the USA) reads, "the government shall be liable for any loss caused by the defect on establishment or maintenance of public facilities." In the two cases, the major issue was whether the government's establishment or maintenance of Air Force practice site and the airport was defective because they caused serious noise to surrounding neighbors. Previously, the Supreme Court interpreted the clause "defect on establishment or maintenance of public facilities" as failure of duty to provide safety measures to the degree generally required to ordinary manager. However the Court at this time interpreted differently that the defect could be found if the facility caused to any person loss to the degree intolerable. In the two cases the Court confirmed the lower court's finding that noise level at the site was severe enough to be intolerable. This standard is based on the severity of the loss rather than the failure of duty. It became easier for plaintiffs to prove the cause of action under this interpretation. The consequence of the ruling of these two cases is 'rush to the courtroom' by the local people at similar situations. The ruling of these two cases was not appropriate both in theory and in consequence. The Korean tort system is basically based on the theory of negligence. Strict liability is exceptional only when there is special legislation. The Court created strict liability rule by interpreting the Art. V of the National Compensation Act. This is against the proper role of the court. The result of the cases is also dismal. The government was already sued by a number of local people for damages. Especially the Department of Defense which is operating many airports nationwide has financial hardship, which will cause downsizing military practice by the Air Force in the long run, This is no good to anyone. Tens of millions of dollars which might be used for compensation might be better used to prevent further noise problem surrounding airports.

• Convergence Security Journal
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• v.17 no.4
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• pp.39-47
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• 2017

In the Republic of Korea, punishment of conscientious objectors is rising as a social issue once again. Large number of news articles on the punishment of conscientious objectors are updated on portal sites several times a day. The background for this phenomena is based on the disagreement between the Supreme Court and the Constitutional Court. The Constitutional Court has ruled that it is constitutional for the government to punish conscientious objectors who denied their service for religious belief according to the Clause 1 of the Article 88 of the Military Service Law. However, district courts have taken different stance in the lower instance. 6 rulings in 2015, 7 rulings in 2016, and 16 rulings in the first half of 2017 has declared the conscientious objectors as not guilty. At the same time, the issue is becoming more controversial as the Jeju District Court has made two different rulings on the punishment of conscientious objectors who denied their military service for religious belief. Therefore, the study aims to find out whether conscientious objection can be included as a reasonable cause under the Clause 1 of the Article 88 of the Military Service Law, and take thorough review on the interpretation and the application of Article 18 of the Human Rights Covenant by examining the rulings at the Supreme Court, Constitutional Court, and District Courts.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.12
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• pp.555-586
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• 1999

United States has extended the extraterritorial application of U.S. Antitrust Law in 1990s. First, The U.S. Federal Supreme Court declared in Hartford Fire Insurance Co. v. California that the extraterritorial application of U.S. Antitrust Law is according to Effect Doctrine. Therefore, U.S. Antirust Division and FTC will continue to base their assertions of juridiction on the test of direct, substantial and foreseeable effects on U.S. interests. Second, U.S. Antitrust Law apply to foreign conduct that such conduct has direct, substantial and reasonably foreseeable effect on U.S. domestic or import commerce and export commerce. Third, United States has extended the extraterritorial application of U.S. Antitrust Law on international licensing contract or international merger. Forth, United States impose criminal responsbility of U.S. Antitrust Law on the foreign anticompetitive conduct. Therefore, our government and industries must consider the corresponding stratigies against the extension of the extraterritorial application of U.S. Antitrust Law.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.69
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• pp.473-493
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• 2016

If a certain country or an arbitration institution hopes to keep ahead of the fierce competition in the international arbitration market, it needs to develop hardware factors, such as i) Facility and Infra, ii) Geographical Location, iii) Professional Staff, iv) Global Network, v) Capital, and vi) Arbitrators & Practitioners etc., along with software factors including i) Arbitration Rules of Law, ii) Court's Support, iii) International Convention, iv) Political Risk, and v) Education Environment, which are the most critical requirements in the development strategy for international arbitration. Having perceived the above situation, the Korean government has been working on amending the Korean Arbitration Act to reflect global advanced practice of international arbitration, and seeking to enact laws that will promote our arbitration industry and create a more arbitration-friendly environment. The KCAB is also currently revising both the domestic and international arbitration rules in accordance with these national efforts. Under these circumstances, this paper examines how major leading international arbitration institutions manage their secretariats and suggests how the KCAB can compose and manage its Secretariat to gain a competitive advantage over rival institutions.

• International Commerce and Information Review
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• v.17 no.3
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• pp.3-27
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• 2015

As hostile online reviews can have a negative impact on a company's reputation, it is not surprising that online reviewers and business owners often get involved in conflicts which sometimes evolve into legal disputes. This research examines the legal dispute case in which the business owner charges an online reviewer for a defamation. Further, this research compares the supreme court's decision with general public's view on this defamation case, using a survey method. From the legal point of view, an online reviewer's primary motive determines whether the online reviews are defamatory statements or not. Specifically, if an online reviewer's primary motive is to increase the overall benefits for the public society, the online review does not bear any legal liability. According to our survey, consumers' view aligns with the final decision of the supreme court. They believe that online reviews should bear a minimum level of legal liability as online reviews often contain useful and valuable information which can enhance overall public benefits.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.22
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• pp.137-171
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• 2004

Under Article 2 of the Uniform Customs and Practice for Documentary Credits (1993 Revision. UCP), letter of credit means an arrangement whereby an issuing bank is to make a payment to a beneficiary, or is to accept and pay bills of exchange drawn by the beneficiary, or authorises another bank to effect such payment, or to accept and pay such bills of exchange, or to negotiate, against stipulated document(s), provided that the terms and conditions of the letter of credit are complied with. In letter of credit operations, all parties concerned deal with documents, and not with goods, services and/or other performances to which the documents may relate (UCP, Article 4). It is important to note that under UCP, if a letter of credit contains conditions without stating the document(s) to be presented in compliance therewith, banks will deem such conditions as not stated and will disregard them (Article 13 c). Section 5-108(g) of the Uniform Commercial Code also contains a similar provision. However on several occasions the Korean Supreme Court held that non-documentary conditions in letter of credit governed by UCP could be regarded as valid, although they were not desirable in the context of letter of credit transactions. The rationale underlying the decisions was that parties to the letter of credit transactions are free to determine the terms and conditions of the relevant letter of credit. After reviewing the relevant provisions of UCP, UCC, the International Standby Practices (ISP98) and the Supreme Court decisions of Korea, the author suggests that we classify conditions that do not require any documents (so called apparent non-documentary conditions) into two categories and treat them differently. There are apparent non-documentary conditions that are consistent with the nature of letter of credit and those which are inconsistent with the nature of letter of credit. In the first category there are two sub-categories, (i) those which are valid and (ii) those which are invalid and thus should be disregarded. In the second category there are two sub-categories, (i) those which are invalid and thus should be disregarded and (ii) those which are valid but deprive the instrument of the nature as letter of credit.

• Journal of the Korean Society of Costume
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• v.38
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• pp.261-277
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• 1998

This study is focused on two things, on the matter of judge's robe(JR) which is worn in the court. First, Korean JR were examined from late 19th century through today(1997)to reveal the entity of the JR : characteristics of each JR has been changed according to the political or international influences. Second, JR from 92 countries were collected and analyzed to figure out the plastic characteristics of the JR among international society. The results are as follows : First, Korean JR were have changed many times according to the social, political influences. The Korean modern judicial system were proclaim in 1895 and JR were adapted in 1906. In 1920, Japanese style JR were worn until 1945 when Korean government have had her Independence. Korean Government have changed JR through which Korean identities were expressed through patterns such as national flower Mukungwha(Hibiscus) and Yang & Yin. In 1966 Korean JR were changed again and adopted western style JR until today (1997) which have many things in common with academic robe of university or clerical robe. Second, the analysis of the 92 international JR were summarized as follows : (1) The JR were consisted of three styles such as Gown style, Cape style and Jacket style. And Gown style has been found as the most popular style(86%) for JR among them. (2) As the main color of JR, black is used among 60% of countries and red is used in 33% of countries. Gold were matched for black JR and gray for red JR as their sub-color. (3) The most popular material were wool and satin were favored as its sub-materials. (4) Natural and Geometric Patterns were used to express the symbol of the country and the court. (5) Decorative items and details such as hat, gloves, shoes, wig, necklace, neck-tie, stole, tassels, rope, ruffles were used to express wearers dignity and symbolism. These results are expected to be adapted for the future design for new JR which has its identity and characteristics.

• The Korean Journal of Air & Space Law and Policy
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• v.31 no.1
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• pp.99-144
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• 2016

The summary of the case is as follows: a Korean passenger booked and purchased a business class ticket from Air France that was scheduled to depart from Paris and arrive in Seoul. When the passenger arrived at the check-in counter, he was told that all business class seats were occupied. It was because the flight was overbooked by Air France. The passenger cancelled the Air France flight and took another air carrier. After arriving in Korea, he brought suit against Air France for damages. The purpose of this article is to discuss the governing law when interpreting the contract of international air carriage in accordance with the Korean Private International Act (2001) and to analyze air carrier's civil liability for the bumped passenger in the overbooking case. If the parties have not chosen the applicable law the contract shall be governed by the law of the habitual residence of the consumer in the following situations: prior to the conclusion of the contract, the opposite party of the consumer conducted solicitation of transactions and other occupational or business activities by an advertisement in that country or conducted solicitation of transactions and other occupational or business activities by an advertisement into that country from the areas outside that country and the consumer took all the steps necessary for the conclusion of the contract in that country or in case the opposite party of the consumer received an order of the consumer in that country [Article 27 (1), (2) of the Private International Act]. Since the contract of international carriage falls into the consumer contract, the Supreme Court viewed that the governing law of the contract in this case would be the law of the habitual residence of the consumer (Supreme Court Decision 2013Da8410 decided on Aug. 28, 2014). This interpretation differs from the article 5 (4) of Rome Convention(80/934/EEC) which declares that the consumer contract article shall not apply to neither a contract of carriage nor a contract for the supply of services where the services are to be supplied to the consumer exclusively in a country other than that in which he has his habitual residence. Even though overbooking can be considered as a common industry practice, an air carrier must burden civil liability in case of breach of contract for the involuntary bumped passenger(Seoul Central District Court Decision 2014Na48391 decided on Jan. 29, 2015). In case of involuntary bumping, an air carrier must offer re-routing to passenger's final destination by an alternative flight. If an air carrier fails to effect performance in accordance with the tenor and purport of the obligation, the involuntary bumped passenger may claim damages(Article 390 of the Civil Code).