International Arbitration: Leaving Korea for Singapore at Twice the Cost

Published 10 Dec.2025 14:20(KST)

KCAB's Downturn Since 2018
Driven by the Decline in Small-Value Cases

Korean Commercial Arbitration Board (KCAB): approximately 20,000 US dollars (3.08 million Korean won) vs. Singapore International Arbitration Centre (SIAC): approximately 50,000 US dollars (63,776 Singapore dollars).

These are the approximate average fees charged by each institution when forming a sole arbitrator tribunal for a dispute amount of 1 million US dollars. SIAC charges about 150% more than KCAB for its services.

According to 2024 data, there were 295 Korean parties-including individuals, corporations, claimants, and respondents-who used SIAC. In contrast, the number of international arbitration cases filed with KCAB, regardless of the parties' nationalities, was only 48. In 2025, KCAB's international arbitration caseload is also expected to remain at around 40 to 50 cases, similar to previous years.

Considering that SIAC's fees are more than twice as expensive, and factoring in additional expenses such as airfare and accommodation, arbitration in Singapore cannot be considered inexpensive. From a purely cost-effectiveness perspective, KCAB appears more competitive, yet parties are willing to bear the higher costs and travel to Singapore.

The decline in small-value international arbitration cases has been cited as a reason for KCAB's relatively weaker competitiveness. A KCAB official explained, "Before 2018, domestic companies frequently filed international arbitration cases with KCAB. At that time, most of the international arbitration cases initiated by Korean companies were small in value." The official added, "Back then, the fees were lower than they are now, and proceedings were not typically conducted in English."

An international arbitration expert also noted, "In the past, when Korean companies were less familiar with international arbitration, they opted for KCAB because it was more accessible. Recently, as Korean companies have become more knowledgeable about international arbitration, they have started to seek out institutions with higher name recognition and those that inspire confidence in enforcement at the seat of arbitration, such as SIAC and the International Chamber of Commerce (ICC)." Experts point out that SIAC has gained prominence because Singapore itself is perceived as a neutral venue, making it a preferred seat of arbitration.

KCAB plans to actively foster international arbitration as part of the legal industry that will determine the country's future competitiveness. On December 5, KCAB President Shin Hyun-yoon attended the 'Law Expo Seoul 2025' and stated, "Every year, a significant amount of arbitration costs flow overseas. Given that a substantial portion of the deficit arises from overseas arbitration, fostering the domestic arbitration industry is not merely a matter of institutional improvement but an economic strategy to reduce national losses."

The Ministry of Justice's second 'Basic Plan for the Promotion of the Arbitration Industry,' announced at the end of 2024, aims for a structural leap in Korea's arbitration market. KCAB is appointing high-ranking judges, including Supreme Court justices, as full-time arbitrators to enhance the expertise and consistency of awards. Additionally, starting in January 2026, an International Arbitration Tribunal will be established, and measures such as expedited and simplified procedures, remote hearings, and electronic signatures will be introduced. These efforts are focused on strengthening the independence and speed of arbitration procedures and improving expertise and efficiency in line with international standards.