This paper analyzes the current status and legal structure of arbitration in public institution disputes, and proposes constraints and improvement measures. First, the Public Institutions Operation Act and Contract Management Rules lack provisions rel...
This paper analyzes the current status and legal structure of arbitration in public institution disputes, and proposes constraints and improvement measures. First, the Public Institutions Operation Act and Contract Management Rules lack provisions related to arbitration, and internal regulations also lack sufficient grounds for arbitration. Second, there is concern that public institutions may be held accountable in audits, such as those conducted by the Board of Audit and Inspection, if they utilize arbitration. Third, the proportion of arbitrators working in public institutions is significantly lower than that of arbitrators in other fields.
This paper proposes three improvement measures to address these issues. First, specifying arbitration as a dispute resolution method in bid notices can alleviate the burden that public institutions may face when choosing arbitration. Second, establishing specific criteria for arbitration in internal regulations can encourage proactive decision-making regarding arbitration. Third, public institutions should appoint arbitrators through a party-selected process, and the Arbitration Board should appoint new arbitrators from current and former public institution employees with established expertise. Furthermore, expanding the use of video conferences in arbitration proceedings can increase public institutions' access to arbitration. This improvement plan involves explicitly establishing systems for public institutions to utilize arbitration, such as through the use of bid notices and revisions to internal regulations.