Can an International Arbitration Proceed If a Korean Company Does Not Participate?

Short Answer

Yes. An international arbitration can generally proceed even if a Korean company does not participate.

A respondent cannot usually stop an arbitration simply by ignoring notices, refusing to submit a defense, or failing to attend hearings. The arbitral tribunal may continue the proceedings and issue an award based on the evidence presented.

However, the claimant does not automatically win just because the Korean company does not appear. The tribunal must still review the claimant’s claims, evidence, and legal arguments.

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Can a Korean Company Stop Arbitration by Ignoring It?

Generally, no.

If a Korean company is properly notified of the arbitration but does not respond, the arbitration may still continue.

Under Korean arbitration law principles, failure to submit a defense or failure to appear does not automatically stop the proceedings. It also does not mean that all of the claimant’s allegations are automatically admitted.

The tribunal may proceed and decide the case based on the materials properly submitted.

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What Happens If the Korean Company Does Not Submit a Defense?

The tribunal may continue the arbitration.

In practice, the claimant will still need to prove its case. This means the claimant should submit:

• The relevant contract
• The arbitration agreement
• Evidence of breach
• Evidence of damages
• Evidence of notice and service
• Any supporting witness statements or expert materials, if necessary

Non-participation by the respondent may make the process procedurally simpler, but it does not remove the claimant’s burden of proof.

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What Happens If the Korean Company Does Not Attend the Hearing?

The tribunal may still proceed with the hearing.

If the respondent had a proper opportunity to participate but failed to appear, the tribunal may continue the proceedings and later issue an award.

For enforcement purposes, it is important to preserve a clear record showing that the Korean company was given proper notice and a reasonable opportunity to present its case.

What If the Korean Company Refuses to Appoint an Arbitrator?

This depends on the applicable arbitration rules and the law of the seat of arbitration.

In many institutional arbitrations, the rules provide mechanisms to prevent one party from blocking the arbitration by refusing to appoint an arbitrator.

For example, the relevant arbitral institution or appointing authority may have power to make the appointment if a party fails to do so.

However, the exact procedure depends on the arbitration clause, the chosen institution, and the seat of arbitration.

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Can an Award Be Issued Without the Korean Company’s Participation?

Yes.

An arbitral tribunal may issue an award even if the Korean company does not participate, provided that the procedure is properly conducted.

This is sometimes informally described as a default award, but it is not the same as an automatic default judgment.

The tribunal must still be satisfied that:

• The arbitration agreement exists
• The tribunal has jurisdiction
• Proper notice was given
• The respondent had an opportunity to present its case
• The claimant has proven its claims

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Can the Korean Company Challenge the Award Later?

Possibly, but the grounds are limited.

A Korean company may later try to challenge the award or resist enforcement by arguing, for example, that:

• It did not receive proper notice
• It was unable to present its case
• The arbitration agreement was invalid
• The tribunal exceeded its authority
• There was a serious procedural defect

However, non-participation itself is generally not enough. A party that simply chooses not to participate will usually have difficulty challenging the award later unless there was a serious procedural problem.

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Can the Award Be Enforced in Korea?

Potentially, yes.

If the claimant obtains a valid arbitral award, it may seek recognition and enforcement in Korea.

For a foreign arbitral award, enforcement will usually be considered under the New York Convention and the Korean Arbitration Act. For a Korean-seated arbitration, enforcement will be considered under the Korean Arbitration Act.

Once enforcement is granted, the claimant may pursue enforcement measures against assets located in Korea.

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Why Is Proper Notice Important?

Proper notice is one of the most important issues when a respondent does not participate.

If the Korean company later argues that it was not properly notified or did not have a fair opportunity to present its case, this may become a key issue in any challenge or enforcement proceeding.

For this reason, the claimant should carefully preserve records of:

• Notices of arbitration
• Delivery confirmations
• Emails and correspondence
• Procedural orders
• Hearing notices
• Opportunities given to the respondent to respond

A strong procedural record can reduce the risk of later objections.

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Practical Considerations for Foreign Companies

If a Korean company is ignoring an international arbitration, the claimant should:

• Continue to comply with the applicable arbitration rules
• Preserve evidence of proper notice and service
• Avoid assuming that non-participation means automatic success
• Prepare evidence carefully
• Consider enforcement strategy early
• Identify assets in Korea or other jurisdictions where enforcement may be needed

In many cases, enforcement planning should begin before the final award is issued.

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Conclusion

An international arbitration can generally proceed even if a Korean company does not participate.

A respondent cannot usually stop arbitration simply by ignoring the process. If proper notice is given and the procedure is conducted fairly, the tribunal may proceed and issue an award based on the evidence before it.

For foreign companies, the key is to maintain a clear procedural record, prove the case carefully, and plan for enforcement from the beginning.

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