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Eric Yang and Mr. Yang opened his presentation stressing the importance of an in-depth understanding of the local legal systems. A very interesting and perhaps more important observation by Mr. Yang was that there was a strong culture of protecting the rights of minority shareholders in certain Southeast Asian countries. That, is, even if the local joint venture partner is a minority shareholder and the Korean investor had the majority of shares, there would be cultural expectations that the playing field would be leveled through other legal protections.
Zunu Lee shared his experience in Indonesia. He shared very valuable tips on local substantive law requirements that affected contract drafting.
In particular, the participants were actively taking notes when Mr. Lee explained that liquidated damages clauses were not allowed under Indonesian law and only damages that could be proven could be claimed.
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Another useful tip shared was on the legal requirement in Indonesia that all contracts had to be in the Indonesian language to be effective, and could not be executed in English only. He also shared a cautionary tale on the issue of "who to talk to" when doing business in certain developing countries in Southeast Asia. In particular, in countries with socialist traditions, it might be particularly difficult to determine the right person with the appropriate authority to approach to obtain government approvals. The two speakers, were Mr.
As it governs the procedural law of the arbitration, both speakers emphasized the importance of avoiding unfamiliar seats. It was useful to note that not all jurisdictions were similar to Korea and Singapore in enforcing non-awards like interim orders, and that confidentiality of the arbitration could not be taken for granted to apply in many jurisdictions.