THE AUTHOR:
Benedikt Kaneko, Associate at Gleiss Lutz
On 1 January 2026, amendments to the Korean Commercial Arbitration Board International Arbitration Center’s (“KCAB”) Arbitration Rules (“2026 Rules”) entered into force, providing the first comprehensive amendments to KCAB International’s arbitration rules in a decade. This article provides a concise overview of the amendments introduced with the 2026 Rules.
In short, in addition to incremental updates, the 2026 Rules introduce a court-based governance framework to strengthen institutional oversight, set out an early determination mechanism, include measures to streamline proceedings, and embrace technological innovation. They also aim at promoting diversity, update fees, and introduce rules addressing third party funding.
Introduction of the KCAB International Court
With the 2026 Rules, the KCAB establishes the KCAB International Arbitration Court (“Court”), thereby adopting a court-based system of institutional governance. This model is used by other leading arbitral institutions, such as the International Chamber of Commerce (“ICC”), the Singapore International Arbitration Centre (“SIAC”), and the Hong Kong International Arbitration Centre (“HKIAC”). KCAB states that it is the first arbitral institution rooted in a civil law jurisdiction to introduce such a court-based governance system. The Court consists of 14 members and is headed by two vice chairs, all of whom are internationally recognized arbitration practitioners based in 13 different jurisdictions.
The Court will oversee important procedural decisions, including, for example, the appointment, confirmation, challenge, replacement, or removal of arbitrators, determination of the seat of arbitration, joinder of additional parties, consolidation of proceedings, and scrutiny of arbitral awards. Whether the Court will be involved in a particular procedural decision or whether such decision will be made by KCAB’s Secretary-General will depend on the procedural situation. The Court’s role is generally structured as a last resort or final decision maker.
The Court should not be confused with the KCAB International Advisory Council, which was also established by the KCAB from 1 January 2026. The KCAB International Advisory Council is tasked with helping to guide KCAB’s global strategy. It consists of 17 prominent arbitration practitioners based in 10 jurisdictions.
Scrutiny of Arbitral Awards
Under Article 40 of the 2026 Rules, arbitral tribunals must now submit draft awards to the Secretary-General for scrutiny before the award can be finalized and rendered. The scrutiny primarily examines the form of the award, though the Secretary-General may also suggest additional points of substance for the tribunal’s consideration.
In KCAB arbitrations, the Secretary-General generally oversees the scrutiny process. However, if circumstances warrant, such as where the draft arbitral award includes a dissenting opinion, the Secretary-General may refer the draft to the Court for scrutiny. This process is designed to promote consistency, enhance quality, and support the enforceability of awards issued in KCAB arbitrations.
Scrutiny under Article 40 of the 2026 Rules differs slightly from scrutiny in ICC arbitration (Article 34 of the 2021 ICC Arbitration Rules) and SIAC arbitration (Rule 53 of the 2025 SIAC Arbitration Rules). In SIAC arbitration, scrutiny is conducted by the SIAC Secretariat (Registrar), whereas in ICC arbitration it is conducted by the ICC Court. Under the 2026 Rules, the Secretary-General has discretion to involve the Court, providing flexibility depending on the circumstances of the case. Across all three rules, scrutiny centers on the form of the draft award, and flagging points of substance may only be included without constraining the tribunal’s decision-making.
Early Determination
KCAB has included provisions explicitly addressing early determination of claims and defenses under Article 36 of the 2026 Rules. An application for early determination is successful if a claim or defense is “manifestly unsustainable or without legal merit”. Similar mechanisms can also be found in multiple leading arbitration rules, such as Article 43 of the 2024 HKIAC Arbitration Rules, Rule 47 of the 2025 SIAC Arbitration Rules, Article 50 of the 2024 CIETAC Arbitration Rules, Rule 9 of the 2026 AIAC Arbitration Rules, or Article 41(5) of the 2022 ICSID Arbitration Rules.
Even though it may be argued that explicit provisions allowing early determination are not necessarily needed for an arbitral tribunal to exercise such authority, clear guidance and explicit provisions should certainly be welcomed as they provide guidance to parties and arbitral tribunals alike. In addition, an early determination potentially allows for proceedings to be conducted more efficiently, thereby saving time and costs for all involved. A decision granting an early determination shall take the form of an arbitral award and must include (albeit sufficient in summary form) the reasons for the decision.
Enhanced Efficiency and Challenges for Undue Delay
To enhance efficiency, the 2026 Rules expand the scope of Expedited Procedures, introduce a new Fast-Track Procedure, and shorten certain timelines in the context of constituting arbitral tribunals.
The newly introduced Fast-Track Procedure (Articles 50-53) applies if the amount in dispute is less than KRW 500 million or per the parties’ agreement. Key feature of the Fast-Track Procedure is that the sole arbitrator (Article 51) shall hold a case management conference within seven days from transmission of the case file (Article 52.1), and the final award shall be rendered within three months after the constitution of the arbitral tribunal (Article 53.1). To be able to meet such an ambitious timeline, a hearing is generally not provided for (Articles 52.3 and 52.4), and the arbitral tribunal should decide based on written submissions and accompanying documentary evidence, while parties may not request document production and likewise may not introduce fact or expert witness evidence (Article 52.3).
Given that the Fast-Track Procedure is newly introduced, it shall not apply if the arbitration agreement predates the 2026 Rules’ effective date, i.e., 1 January 2026 (Article 50.2). For these older arbitration agreements, the Expedited Procedure shall apply if the amount in dispute does not exceed KRW 500 million. This is consistent with the Expedited Procedure under Article 43 of the 2016 KCAB International Arbitration Rules, where the amount in dispute for the Expedited Procedure was up to KRW 500 million.
The Expedited Procedure (Articles 45-49) now applies if the amount in dispute is between KRW 500 million and KRW 4 billion or per the parties’ agreement. This should allow the Expedited Procedures to apply in more cases. Under the Expedited Procedure, the final award shall be made within six months after the constitution of the arbitral tribunal (Article 48.1).
Time limits for the nomination of arbitrators and the constitution of an arbitral tribunal have been shortened from 30 to 15 days. This aims to prevent delays at the outset of arbitral proceedings and allow for swift constitutions of arbitral tribunals.
In the spirit of efficient proceedings, parties may challenge an arbitrator if he or she “fails to perform such functions without undue delay” (Article 14.1). This constitutes a new ground for a challenge, and it will be interesting to see how it will be applied in practice by the Court and whether this ground for a challenge will find traction with other arbitral institutions and legislators as well.
Technological Innovation and Diversity
The 2026 Rules encourage the use of virtual hearings (Article 31.6) and the use of electronic filings (Article 16.4). They also provide new provisions for information security to protect data integrity of information that is shared, stored, or processed in relation to the arbitration (Article 60).
In addition, the 2026 Rules also provide that the arbitral tribunal is encouraged “to discuss with the parties the implications and guidelines for the use of information technology tools including tools powered by or otherwise embodying artificial intelligence, by any party or arbitrator” at the first case management conference or any point of the arbitral proceedings (Article 16.5). At the end of December 2025, it was additionally reported that the KCAB is exploring the possibility to introduce AI-based electronic arbitral proceedings.
Additionally, the 2026 Rules encourage all stakeholders involved in the nomination of arbitrators “to give due regard to considerations of diversity” (Article 12.7), and the Court itself, when appointing an arbitrator, shall consider diversity in addition to experience, nationality, residence, availability, and ability to conduct the arbitration (Article 12.8).
What About the Money?
The filing, administrative, and arbitrator fees are updated in the 2026 Rules and have increased. The fees still remain competitive and at a relatively lower level for users compared with other leading global arbitral institutions. In addition, an hourly rate system for arbitrator fees is possible for high-value disputes over KRW 15 billion.
With the rise of third-party funding, the 2026 Rules now also impose a disclosure obligation with respect to “the existence and identity of any non-party with which [a party] has entered into an arrangement for the funding of claims or defenses in the Request or the Answer or otherwise as soon as practicable after the funding arrangement is concluded” (Article 10.5). To safeguard the integrity of the proceedings, the 2026 Rules prohibit entering into a funding agreement after the constitution of the arbitral tribunal if such funding agreement may give rise to a conflict of interest with any member of the arbitral tribunal (Article 10.6).
Conclusion
KCAB’s 2026 Rules align the institution and its governance with leading global and regional arbitral institutions. The amendments focus on practical improvements: enhancing institutional governance, reducing time and cost, enabling efficient resolution of complex disputes, addressing third‑party funding, and embracing the technological realities of 2026. Together, these amendments deliver meaningful structural reform while staying closely aligned with best practices and the evolving needs of users.
ABOUT THE AUTHOR
Dr. Benedikt Yuji Kaneko is an associate at Gleiss Lutz. He advises clients on disputes and contentious proceedings, focusing on international commercial and investment arbitrations with a connection to Asia, particularly Korea, Japan, Singapore, and China. He is admitted to the German Bar (Rechtsanwalt) and the New York Bar (Attorney at Law).
*The views and opinions expressed by authors are theirs and do not necessarily reflect those of their organizations, employers, or Daily Jus, Jus Mundi, or Jus Connect.
