Alternative Dispute Resolution Focusing On Mediation and Agreement, Research Study by Acrc - Korea, June2009

Alternative Dispute Resolution
Focusing on Mediation and Agreement
The Anti-Corruption and Civil Rights Commission

Alternative Dispute Resolution: Mediation & Agreement
Preface
In an attempt to build complaints handling capacity of ombudsman, members agreed

to share best practices in 2006 AOA board of directors meeting, to voluntarily select
and carry out research projects, and to share the results by submitting them to the
Secretariat.
Korea witnessed a growing number of disputes related to development process over

the course of a rapid economic growth and urbanization. The settlement of collective
disputes related to construction and transportation were not easy due to sharp conflict
of opinion of interested parties. Therefore, the Alternative Dispute Resolution (ADR)
was introduced, where an ombudsman mediate between conflicting parties as a neutral
third party and present alternative approach.
In the case of Korea, the ADR has taken root as a way to successfully deal with
disputes in transportation area in particular. To contribute to building dispute
settlement capacity of AOA members, the ACRC has published this paper to share
successful cases of dispute settlement through the ADR.
This paper contains theory on ADR and ACRC’s experience and best practices of
resolving collective disputes through mediation and agreement over the past 5 years.
The ACRC plans to update by continuously identifying best practices. I hope that this
paper will contribute to enhancing grievance handling capacity AOA members.
Table of Contents
Part 1 Dispute Resolution Theory ····························································· 1
Chapter 1 Concept of Conflict ········································································································· 1

1. Definition of Conflict ··················································································································· 1
2. Development of Conflicts ··········································································································· 1
Chapter 2. History of Dispute Resolution ········································································· 2
Chapter 3. Dispute Resolution Methods ···················································································· 4

1. Mediation ······································································································································· 5
2. Arbitration ····································································································································· 5
3. Negotiation ···································································································································· 5
4. Facilitation ····································································································································· 5
5. Conciliation ····································································································································· 6
Chapter 4. Administrative Mediation and General Procedure in Korea ··························· 6
Chapter 5. The Principles of Mediation ··············································································· 10

1. Responsibility and voluntary participation ············································································ 10
2. Independence and neutrality ···································································································· 10
3. Trustworthiness ···························································································································· 10
4. Confidentiality ······························································································································· 10
5. Flexibility ········································································································································ 11
6. Errors ·············································································································································· 11
Chapter 6. Strengths, Shortcomings and Values of Mediation ······································· 11

1. Strengths ······································································································································· 11
2. Shortcomings ································································································································· 12
3. Values ··········································································································································· 12
Part 2. The Mediation and Agreement at the ACRC ·························· 14
Chapter 1. The Necessity for Settlement by Mediation and Agreement ······················· 14

1. Background ································································································································ 14
2. Direction - causal analysis and looking for solutions ··················································· 15
3. Implementation strategy: developing a new tool for boosting satisfaction level and
realizing the vision of the nation ························································································· 18
Chapter 2. Shift From Complaint Handling to Settlement ················································ 20

1. Legal ground ··························································································································· 20
2. Information sharing and strategic management of mediation and agreement ·········· 20
3. Mediation and procedural phases ····················································································· 21
Chapter 3 Impediments and Improvement Efforts ······························································· 25

1. Impediments found in causal analysis ··············································································· 25
2. Impediments found during mediation ······································································· 25
3. Strategic approaches for overcoming impediments ···························································· 25
Chapter 4. Mediation and Agreement Statistics and Trend ················································· 27

1. The sharp increase in and spread of mediation ······························································ 27
2. Greater satisfaction with mediation and agreement ·························································· 29
3. Overview on mediation meetings ··························································································· 29
4. Long-term, large-amount, multiple stakeholder complaints ············································ 40
5. Resolution of complaints between public organizations, or a public and a private
organization ································································································································ 40
6. Handling mediations that fail ································································································ 41
Chapter 5. Factors Behind Vigorous Mediation and Agreement Practices ······················· 42

1. Reform of vision, organization and the performance system ······································· 42
2. Forums of communication ········································································································ 42
3. Internal and external specialists: ·························································································· 42
4. Final Dispute Resolution ··········································································································· 43
Chapter 6. Ways to Further Improvement ··············································································· 44

1. Establish strategic mediation system for social issues ···················································· 44
2. Ensure systematic flexibility to boost the mediation and agreement rate ················· 44
3. Maintaining competitiveness of mediation and agreement ············································ 45
Part 3 Mediation and Agreement Case Studies ······························· 46
Case 1 : The Change of the Ground-level Railway Section in the Downtown Area into
an Elevated Route ········································································································ 46
Case 2 : Railway Design Change for a New Section of the Janghang Railway Line ···· 49
Case 3 : The Establishment of an Underpass in the Sinryewon Station ····················· 52
Case 4 : The Installation of Traffic Safety Facilities in Front of an Elementary School ···· 55
Part 1 Dispute Resolution Theory
Chapter 1 Concept of Conflict
1. Definition of Conflict
A conflict defines a situation where incompatible interests or goals collide and
stand in opposition to each other. Conflicts occur when people know they have
different opinions about a certain subject and the difference has a negative
influence on people which make them more contentious and controlling of each
other. Conflicts are usually latent and disputes are the conflicts which are
expressed. Conflicts do not occur in just one area but involve individuals, social
sectors and government policies. The perception people develop about a certain
conflict determines their actions to resolve the conflict.
2. Development of Conflicts
Conflicts manifest themselves differently depending on the personalities and
perceptions of those concerned. Generally, conflicts develop slowly at first but
escalate at some point. After a certain period of time, they reach a stalemate and
gradually become resolved.
1) Causes of conflict escalation

Conflicts escalate when both the parties adopt an either/or dichotomy; when they
are convinced that they can win the case; when they have found more compelling
evidence; when they have obtained only favorable information due to a distortion
of information; when they elect to only accept information favorable to their side;
and when they are immersed in themselves and blinded by self-rationalization.
2) Causes of a stalemate
Conflicts reach a stalemate when both parties have no more cards left to play;
when they have lost support from society or people around them; when they are
no longer capable of proving their argument; and when they do not have will to
fight any more.
Anti-Corruption & Civil Right Commission (ACRC) Page 1

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3) Causes of de-escalation
Conflicts de-escalate when the other party does not respond any more; when the
other party concedes unconditionally; when the other party is too obstinate; when
one party becomes indifferent or avert; and when the parties enter into an
arbitration process.
Chapter 2. History of Dispute Resolution
Some say the origin of alternative dispute resolution is Mahatma Gandhi's

non-violent resistance, but others say it originated from Jimmy Carter's 1978 Camp
David Peace Accords between the Arabs and the Israelis on Palestine territory or
from negotiations between former US President Ronald Reagan and Russian
counterpart Mikhail Gorbachev, which led to the dissolution of the Soviet Union.
Methods used by Presidents Reagan and Gorbachev gave birth to arbitration boards
across the US and Europe and vibrant discussions on college campuses.
The people who study alternative dispute resolution methods have keen interest in
the efforts made by former US President Bill Clinton to systematize alternative
conflict settlement. Bill Clinton was aware that conflicts undermine productivity and
tried to figure out how to resolve conflicts reasonably, which led him to
systematize alternative dispute resolutions. He took advice offered by the
Administrative Reform Committee. That is, only when employees and their
representative labor union enjoy equal rights to policy-making as the management
does, and when they actively participate in policy decisions, efforts to innovate the
government should be made, such as organizational reshuffles or layoffs. President
Clinton issued the Executive Order on Labor-Management Partnerships to the state
governments on October 1, 1993.
The Labor-Management Partnerships said that for a mutually beneficial relationship

between labor and management, the following principles should be respected. First,
a standing Labor Management Commission should be established to be composed
of employee representatives who are not labor union members. Second, unofficial
efforts of labor and management should be made before a third party is required
to step in by taking advantage of alternative dispute resolution methods. Third,
labor unions should change to become more mature and financially independent
and adopt professionalism. Fourth, the management should assume responsibilities

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and the obligations befitting managers in sharing information with the labor union.
Fifth, cases with the possibility of labor-management conflict should be addressed
through agreement under the umbrella of a legally binding institution.
In Korea, the administrative litigation system became three-tier on March 1, 1998.

The Seoul Administrative Court is taking the lead in using conciliation under the
name of "arbitrary mediation," and is making considerable headway. Arbitrary
mediation in the court is highly practical in that it reduces workload (written
adjudication is unnecessary), makes litigation more economical (appeals to the High
Courts and the Supreme Court incur costs), and helps the parties accept the
outcome (the dissenting parties reach an agreement voluntarily).
Arbitrary mediation in the process of administrative litigation has not had enough
cases yet and its system is not flawless. Courts and the bench of judges have
slightly different modus operandi but generally carry out arbitrary mediation as
follows:
The Court deems Article 8 (2) of the Administrative Litigation Act "with respect to
matters not provided for in this Act concerning administrative litigations, the
provisions of the Court Organization Act and the Civil Procedure Act shall apply
mutatis mutandis" as the provision of conciliation. The bench of the Seoul
Administrative Court is using conciliation not only for administering
non-enforceable cases but also for administering enforceable cases, regardless of
whether or not they have discretion in their rulings. After considering examination
results, the Court views that the parties have the right to conciliation during
litigation if a lack of clarity exists about the factum or law. Then the judges decide
to recommend arbitrary mediation. The conciliation involves correction orders or
cancellation of authority, as appropriate, for the defendant and withdrawal of
litigation for the complainant. The parties cover their own litigation costs. The
recommendation can be either written or oral, but in the latter case, a written
record of oral argument should be made, and a certified copy should be sent to
the concerned party. If both parties agree, the Court writes a conciliation record,
which closes the case. Otherwise, the parties submit a written agreement without
making a conciliation record, or the complainant writes its argument for the
record, and confirms the correction made by the defendant administrative agency,
after which the complainant hands in a written withdrawal of litigation to the
Court.

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Since the Administrative Litigation Act does not apply the Judicial Conciliation of
Civil Disputes Act mutatis mutandis, arbitrary mediation has no basis under the
positive law. The Court uses the name "arbitrary mediation" and its operational
procedures, but if litigious conciliation is made, litigation is closed based on the
complaint withdrawing from litigation. Instead of a mediation statement, a
conciliation statement is made. In this regard, arbitrary mediation is really litigious
conciliation in practice. Yet, theoretic conflicts remain about whether litigious
conciliation can generally be allowed in administrative litigation. There are no
affirmative precedents on this, opening up both possibilities and limitations. Some
prosecutors propose to adopt the plea bargaining scheme used in criminal
procedure.
Chapter 3. Dispute Resolution Methods
The dominant perception in Korea is that negotiation or compromise between the

state authority and its people and that negotiation and consultation have negative
connotations of back room dealing. This is why legal procedures are common when
discontent with administration becomes explicit and disputes occur. Those
concerned fight ferociously before the court, the ultimate authority of legal
interpretation.
As society becomes more complex and diversified as a result of informatization and

globalization, economic activities are becoming more diverse, and so are conflicts.
Many of them require detailed technical knowledge to be decided. Against this
backdrop, more people are banking on sophisticated and specialized expertise to
resolve conflicts, rather than depending on the traditional rulings of the courts.
Demands for alternative dispute resolution has escalated. People wanted institutions
which can ease some of the economic and physical burden of the litigation system
and settle conflicts promptly at a lower cost. They requested a system which
focuses more on conflict itself, rather than deciding, bound by the norms, who is
the winner and the loser. They also wanted to be able to utilize their experience
and wisdom and overcome the zero-sum game, a feature of litigation.

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Riding on such desire, methods are being developed to resolve conflicts into a
mutually beneficial situation. A move to settle conflicts without resorting to
established litigation procedure is called Alternative Dispute Resolution (ADR). ADR
has various forms of mediation including civil mediation and mediation in litigation
procedure, which is why ADR is categorized into the following types:
1. Mediation
Mediation refers to the resolution of conflicts by a third party who is trying to
encourage both parties to concede. A party or both parties select a third party as
a mediator to reach an agreement on dispute resolution. Mediation is not binding
and has no effect if a party refuses to accept it, which undermines its
effectiveness compared to other methods. Yet, once the parties agree on mediation,
it is less expensive and much simpler, which is a big merit.
2. Arbitration
Arbitration is an out-of-court resolution process where a third party adopts and
decides a case. While a mediation decision becomes binding only when the parties
choose to accept it, all arbitration awards issued by a third party arbitrator are
binding on the parties. If a negotiation or mediation fails to reach a conclusion
despite a period of painstaking efforts, arbitration comes in to prevent the
efficiency of society and the productivity of an organization from declining.
Arbitrators resolve conflicts by making decisions based on evidence presented and
proposals from the parties involved. It is up to the parties concerned whether to
accept arbitration, but once they do, the arbitration award is enforceable.
3. Negotiation
Negotiation is a general discussion where the parties talk about the issue and
reach an agreement to resolve a conflict. Legal or illegal conflicts can be the
subject of negotiation. It is up to the parties how they negotiate and based on
what grounds they will reach a resolution. Negotiation sometimes reconfirms or
changes the relationship between the parties or their obligations and rights.
Negotiation is the most modest form of the dispute resolution methods. The
parties may have a negotiator who represents them. The negotiator representing
the party or an organization does not have to be neutral as arbitrators are
supposed to be.
4. Facilitation

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Facilitation is a technique that promotes communications during the meetings

between the parties and the exchange of information. Facilitators do not partake
in arbitration and maintain a neutral stance. (They do not necessarily have to be
a neutral and objective third party.) They have keener interest in the process itself
which is used for problem solving. They regulate the speed of the dispute
resolution process to make it more effective and help the parties take problem
solving steps one by one.
Facilitation can be deployed when the parties became adversarial to each other or
when there are more than two stakeholders with complex interests. Also, the
technique is used when the parties trust each other and are willing to solve the
issue, but do not know how or when those involved recognize that they have
something to gain from dispute resolution.
5. Conciliation
With the aim of restoring a good relationship among the parties, the third party
who is familiar to both concerned parties steps in to work towards an agreement.
Conciliators do not necessarily have to be neutral. Since their objective is to make
the parties more open to negotiation, mediation and arbitration, they put the
highest priority on making an atmosphere that facilitates conversation.
Chapter 4. Administrative Mediation and General Procedure in

Korea
Mediation is done in civil, criminal and administrative fields. In the administrative

field, a string of commissions are working for mediation, and in civil and criminal
cases, mediation is adopted as a part of the litigation procedure. Unlike arbitration
or court adjudication, the mediation system in administrative cases is boosting the
ability to voluntarily resolve conflict. The parties in conflict resolve their extreme
arguments and an administrative agency negotiates administrative dispositions with
the consumer. This is the process where the members of a society are involved in
settling the issues of society. Currently, a variety of dispute mediation commissions
function as the avenues for settling administrative conflicts. A number of dispute
resolution commissions based on legal grounding are as below for various fields.

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To start the mediation process, as the first phase, the mediator gives an
opening statement and introduces the participants, explains the purpose and rules,
and encourages the cooperation of both the parties. In the second phase, the
parties issue statements and present the issues, impacts and solution of conflict
from their sides. In the third phase, things that should be mentioned in mediation
are clarified during the fact-finding examination. In the fourth phase, separate
meetings are held. As the most important part of mediation, the parties discuss
their own strengths and weaknesses and are given new ideas to reach a conclusion.
Yet, in most divorce disputes, this phase is often skipped because separate
meetings undermine trust among the parties and worsen the situation. In the fifth
phase, joint negotiation or joint discussion is held. The sixth phase is the closing
process. If an agreement has been made, the mediator organizes the main issues,
and if that is not the case, the mediator reviews the whole process and proposes
re-mediation or litigation and trial.
< The Process of Mediation >
Mediator's opening statement

Stage 1 The Mediator notifies of the direction and procedure of mediation
by holding a meeting.
Statement of the parties concerned
Stage 2 Each party is given an equal opportunity to express their opinions and
present evidence. After their statement, main issues are organized.
Fact-finding examination
The mediator proceeds with steps to collect the necessary
Stage 3
information through examining and reviewing documents on the
disposition and hearing statements.
Separate meetings
Stage 4 To find ways to resolve the conflict, the mediator has separate
meetings with the parties and relays their stances.
Joint discussion
Stage 5 The mediator helps the parties reach an agreement or proposes a
reasonable solution to them.
Closing of mediation
Agreement is made: The mediator organizes main issues
Stage 6 Agreement is not made: The mediator advises re-mediation or
presents other options.

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Parties Area Name of Commission Relevant Law Relevant

Ministry
Governme Administration Consultation Mediation MOGAH

nt Commission Local Government Act A
Admini
⇔ stratio
Local n
governmen National Dispute Mediation Commission Local Government Act MOGAH
t, A
Local
government
⇔ Educat City and Province Educational Dispute MOEHR
Local ion Mediation Commission Act on the Autonomy of Local Education D
government
Labor Korea Tripartite Commission Act on the Establishment and Operation of the KTC
Governme Korea Tripartite Commission
nt
⇔
Individuals Educati National Teachers' Status Special Act on the Teachers' Status MOEHR
on Enhancement Deliberation Board Enhancement D
National Labor Relations Commission Act on the National Labor Relations MOL
Commission
Labor
Sailor Labor Commission Sailor Act MOMAF
International Contract Dispute Mediation WTO Procurement Agreement, Act on MOFAT

Commission Contracts to which the State is a Party
Korea Commercial Arbitration Board Arbitration Act, Enforcement Decree on MOCIE

Foreign Trade Act KCAB
Trade
Comm Subcontract Dispute Mediation Council Fair Transactions in Subcontracting Act KFTC
erce
Electronic Commerce Mediation Framework Act on Electronic Commerce KIEC
Committee
Consumer Dispute Settlement Consumer Protection Act KCA

Commission
Individual Medici Medical Service Review and Mediation Medical Service Act MHW
⇔ ne Commission
Individual
Media Arbitration Commission Act on the Registration of Periodicals MCT
Media
Dispute Mediation Commission Broadcasting Act KBC
Financial Dispute Mediation Act on the establishment of Financial FSS

Commission Supervisory Organizations
Financ
e
Securities Dispute Mediation Securities and Exchange Act KSE
Commission
Environ Environmental Dispute Mediation Environmental Dispute Adjustment Act MOE

ment Commission
Constr Construction Dispute Mediation Framework Act on the Construction MOCT

uction Commission Industry
Educat Private School Dispute Mediation Regulations on Private School Dispute MOEH
ion Commission Settlement RD

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Relevant
Parties Area Name of Commission Relevant Law Ministry
Program Deliberation and Mediation Computer Program Protection Act MOIC
Commission
Copyright Deliberation and Mediation Copyright Act MCT
Commission
Industrial Property Dispute Mediation Invention Promotion Act KIPO
Intellectual Commission
Individual ⇔ Property
Individual Rights Semiconductor Layout Design Deliberation Act on the Layout Designs of Semiconductor KIPO
and Mediation Council Integrated Circuits
Korea Information Security Agency Act on Promotion of Informatization and

Communications Network Utilization and KISA·
Information Protection, etc.
Name Dispute Resolution Commission NIDA
MOGAHA: Ministry of Government Administration and Home Affairs

MOEHRD: Ministry of Education and Human Resources Development
KTC: Korea Tripartite Commission
MOL: Ministry of Labor
MOMAF: Ministry of Maritime Affairs and Fisheries
MOFAT: Ministry of Foreign Affairs and Trade
KCAB: Korean Commercial Arbitration Board
KFTC: Korea Fair Trade Commission
KCA: Korea Consumer Agency
KIEC: Korea Institute for Electronic Commerce
MHW: Ministry of Health and Welfare
MCT: Ministry of Culture and Tourism
MOCT: Ministry of Construction and Transportation
KBC: Korea Broadcasting Commission
FSS: Financial Supervisory Service
KSE: Korea Stock Exchange
MOE: Ministry of Environment
KIPO: Korean Industry Patent Office
MOIC: Ministry of Information and Communication
KISA: Korea Information Security Agency
NIDA: National Internet Development Agency

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Chapter 5. The Principles of Mediation
1. Responsibility and voluntary participation

In the mediation process, a mediator does not decide but the parties concerned
take the lead and voluntarily make decisions from the start of mediation to the
settlement of conflicts. This imparts to mediation the qualities of accountability
and voluntary involvement. As a result, the mediator plays a mere assistant role
in the process and whether his neutral proposal is accepted depends on the
decision of the parties. Since the parties take responsibility for dispute resolution,
responsibility and voluntary participation are the most fundamental characteristics
of mediation.
2. Independence and neutrality

A mediator is not under the order or supervision of a government agency and is
independent. This is because the mediator should represent not just one party's
interest, and should work for all the parties involved, which is taken to mean that
neutrality is another principle of mediation.
3. Trustworthiness
To smoothly reach an agreement, the parties should be able to trust their
mediating organization, mediator and mediation process. The mediator's role is
essential for earning the trust from the parties. In this sense, the mediator needs
to be sincere, and has to be committed to bringing about an amicable resolution
to the conflict. What is quintessential is that the mediator should maintain
integrity and transparency, tolerating no bribery cases. He also has to have deep
knowledge about negotiation techniques in the mediation process and receive
training for this purpose.
4. Confidentiality
Protecting confidentiality is fundamental to mediation. In general, evidence
presented by both parties should not be disclosed. Regarding a dissatisfaction
petition for taxation, the third party is obliged to maintain confidentiality about
adjustments under the Framework Act on National Taxes. Without special cases
being recognized in the court, however, evidence submitted during the process of
mediation might be used as evidence.

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5. Flexibility
The prime purpose of mediation is to resolve conflicts in a practical and
comprehensive manner, which is different from the all-or-nothing approach of the
substantial law and is a settlement method based on rationality and common
sense. Even if the parties fail to rigorously assume the responsibility of proving
the facts, flexible ways of dispute settlement, including a resolution on the basis of
equity, are encouraged depending on the free evaluation of evidence in the court.
Flexibility is a significant factor that complements shortcomings of the existing
dispute resolution scheme.
6. Errors
Mediation is grounded on the premise that some degree of fallacy in its process
or contents is offset by social benefits stemming from dispute resolution. As
mediation mainly focuses on fact-finding, the probability of errors having been
made in the process of determining the facts during mediation is acknowledged.
Chapter 6. Strengths, Shortcomings and Values of Mediation
1. Strengths
Mediation is:
prompt, confidential (except for juvenile protection cases, in which juvenile
crime hearings may not be disclosed under the Juvenile Act Article 24(2) and
the Act on Protection of Juveniles against Sexual Exploitation Article 13(1), and
for sexual crime cases, in which trials are not open to the public under the Act
on the Punishment of Sexual Crimes and Protection of Victims Thereof Article
22);
less expensive, fair (an unfair result is not accepted by the parties);
flexible (free discussions are possible because of freedom from rigid legal logics);
less burdensome (easy terminology and less formality with the parties being
directly involved); and
highly satisfactory (a greater than 80% of satisfaction rate concerning the
outcome of mediation).

11
2. Shortcomings
Mediation's inherent shortcomings are:
Mediation does not produce binding results (if mediation fails to resolve a
conflict, the result is a waste of time, money and energy);
Imbalance of power (If one party is superior in terms of information, finance
and emotional control, the other is put at a disadvantage, which makes the role
of the active and professional mediator more important);
risk factors (if the parties close the mediation embracing an inappropriate
agreement); and
manifestation of the parties' own situation. (For more effective mediation,
advantages from one party should be promoted to persuade the other, and at
the same time, he should be open to the perspective of the other party, which
means he is acknowledging that he is accountable in a sense.)
3. Values
Mediation has its own strengths and weaknesses but can prove to be most
valuable in the following cases:
When legal methods cannot present proper solutions (The cost of law suit in
terms of time, expense, publicity, and impaired relations with neighbors
outweighs the gravity of the issue.);
When the parties want the closure of an issue, not the maintenance of good
relations (There is a saying that lawsuits lay animosity that lasts for a decade,
but mediation is there for all stakeholders who reach an agreement on dispute
resolution.);
When the parties want the conflict to remain in secrecy;
When the parties want to minimize costs;
When the parties want to resolve promptly;
When the parties hope not to leave legal precedents;
When it is hard to commence the negotiation; and
When the parties do not have sufficient negotiation skills.
On the other hand, mediation cannot show its worth in the following cases:
When the parties want to prove their rights and leave behind legal precedents
(In cases concerning the environment, women's welfare, and immigrants' welfare,
leaving precedents by winning the case is preferred);
When the parties have an eye on large financial compensation if they win the

12
case (if it is likely to be compensated in a large amount for their pain and
distress) (Korea does not recognize punitive damages.);
When one party refuses, does not participate in, or is incapable of mediation
(Those with mental illness are not eligible for mediation, but those with a
language disorder or physical defects have little problem in resolving conflicts
through mediation.);
When the conflict is related to grave crimes;
When a court order is necessary to prevent losses (If a trademark right is
violated, the court's temporary disposition banning manufacturing of products that
infringes on the trademark is most effective to curb the distribution of similar
products.);
When a case can be best handled in a small claims court; and
When one party can comfortably win the trial or arbitration process.

13
Part 2. The Mediation and Agreement at the ACRC
Chapter 1. The Necessity for Settlement by Mediation and

Agreement
1. Background
1) The sharp increase in complaints
The Ombudsman of Korea1) (hereinafter referred to as "OK") received and
handled 168,506 cases of complaints in the areas of labor and wages,
construction, city, and finance and taxation over the 11 years from its inception
in 1994 until 2005. The Ombudsman, which is independent from other
administrative bodies, has guided the administration to meet the demands of the
people from the perspective of a third party, whenever a complaint is filed. In
2005, however, an online integrated portal site "e-People" which can receive and
handle through one single location all the complaints that used to be lodged
against each administrative agency was opened. Furthermore, with the enactment
of the Ombudsman of Korea Establishment and Operation Act (the Ombudsman
Act), the standing of the OK was enhanced. These changes resulted in an
increase in the number of complaints filed by those who expect more effective
settlement of complaints.
2) Stagnant acceptance rate

With the enactment of the Ombudsman Act, the time frame given for processing
cases was shortened from 90 to 60 days. This time constraint discouraged some
of the investigators from pursuing a settlement through mediation and agrement
which can be more efficient solution for complainants. The investigators easily
resort to dismissal or guidance where they simply provide study results or
relevant Acts and subordinate statues.
1) The Anti-Corruption & Civil Right Commission (ACRC) was launched on February 29, 2008
by integration of the Ombudsman of Korea, the Korea Independent Commission against
Corruption and the Administrative Appeals Commission.
With the consolidation of these three organizations, citizen can be provided with one stop
service of addressing public complaints, filing administrative appeals and fighting corruption by
a single organization in a speedier and more convenient manner.

14
3) Decrease in complainant's satisfaction

The Ombudsman of Korea is supposed to be an organization that corrects
violations and unfair treatment by administrative bodies. In reality, however, it
was common for the Ombudsman to receive not only civil but also criminal cases
because of the meaning of its Korean name, "addressing public complaints."
Efforts made since the Ombudsman Act was enacted have promoted the OK and
increased its exposure to the people. However, the greater expectation was
accompanied by greater disappointment. The complainants realized that the
Ombudsman only handled cases having to do with administrative organizations.
Also, they became aware that if the law was unreasonable, it could be improved,
but if the laws had been implemented for a relatively good reason, there was
nothing they could do to ease their concerns given the law. As such, the degree
of satisfaction among the complainants went down.
4) Demand for new ways to resolve disputes

The public expressed their aspirations for new dispute resolution methods which
listened to the voice of the people. This new dispute resolution has to be a
break-away from past practices where the government stuck to the law without
respecting the opinions of people when it executed public projects, such as
construction of the Buan nuclear waste dump, construction of the railroad track
through Mt. Chunsung, and the development of the Buk(northern) Han River.
2. Direction - causal analysis and looking for solutions

1) Causal analysis of the dissatisfaction with the handling of complaints
The Ombudsman of Korea conducted a survey by taking a representative sample
of 1,000 complainants in order to ascertain how satisfied they were about the
outcome of the complaints. The Ombudsman asked the 433 respondents who said
they were dissatisfied about their reasons why in order to understand what
caused the degree of satisfaction to decline and to systematically analyze the
reasons for their discontent.
The reasons can be classified broadly into two categories of dissatisfaction with
the outcome and dissatisfaction with the process. The respondents discontent with
the outcome were unsatisfied mainly because administrative bodies may ignore
the OK's decision, which is a mere recommendation and is not binding.
The respondents unhappy about the process were dissatisfied because the

15
ombudsman did not fully understand the complainants' concerns and talked about
laws and regulations repetitively while leaning towards taking the side with public
officials and administrative agencies. They also gave reasons: that the ombudsman
did not visit the site and just dealt with what was in the document; that they
did not disclose what procedures are to be taken; that they failed to fully
cooperate with relevant agencies; and that they were superficial in the treatment
of complicated issues.
<Reasons for unsatisfactory complaint handling (2005 survey)>
cases
rate
Reason for dissatisfaction (complai
(%)
nants)
Outcome is not as satisfactory as The decision lacks binding power
was expected. and effect.
outcome Outcome is the same as what the 216 49.9
The administrative body ignores the
administrative body had initially
decision of the Ombudsman.
concluded.
The Ombudsman shirks the
Complaints are handled in a
responsibility and passes it onto
superficial and half-hearted manner.
other agencies.
The Ombudsman does not fully
The Ombudsman favors
understand complainant's concerns
administrative agencies and civil
and talks about laws and
servants.
regulations repetitively.
The Ombudsman lacks impartiality. Ombudsmen lack professionalism.
process 212 49.0
The Ombudsman tends to refer only
The process is slow, not swift. to documentation without visiting the
site.
The Ombudsman does not
The Ombudsman handles matters
understand the complainants'
unilaterally.
situation.
The Ombudsman does not share the procedures of the case.
The Ombudsman does not fully

The Ombudsman is authoritative.
cooperate with relevant agencies.
others The Ombudsman is not thorough 5 1.2
The Ombudsman underplays the
enough in dealing with complicated
case.
cases.
Total 433 100.0
2) Strategy for zero dissatisfaction

In the survey, 351 or 32.1% of respondents said that they were discontent with
the outcome of complaint handling. The Ombudsman focused on the factors
behind people's dissatisfaction and found that superficial case-handling, a passive
attitude, lack of effective surveys, not effectively helping, lack of management

16
after the fact, failure to visit the site, and lack of mediation accounted for 20.6%
of the reasons for dissatisfaction. Also, 64% of discontent respondents expressed
their preference for decisions which would be binding. In particular, discontent
with the outcome constituted 49.9% of the total, compared to the 49.0% who
were discontent with the process. This indicates that unless administrative
agencies accept the Ombudsman's decision, complaints cannot be satisfactorily
resolved because the Ombudsman can only make recommendations. As such,
people are calling for a more effective dispute resolution scheme. When the root
cause is not addressed, complaints filed repetitively tend to involve the collective
action of multiple complainants, which is a situation requiring separate and
special care.
In summary, the casual analysis confirmed that traditional measures of corrective

recommendation and official opinions issued to administrative agencies, if
rejected, only disappointed the people and made them feel betrayed. The
Ombudsman concluded that different types of measures should be adopted. To
resolve the discontent, the Ombudsman needs a new dispute resolution system to
satisfy the public who is calling for the OK to actively inspect the site, lend its
ears to the disgruntled people, let them be involved and decide by themselves,
and receive assurances that the administrative agency will respect the
Ombudsman's decision.
3) Alternative dispute resolution

Alternative dispute resolution (ADR) is frequently used in civil disputes such as
labor disputes and domestic conflicts. Recently, however, ADR has become more
widely used in the area of public policy. When public policies are implemented,
preemptive and precautionary participation has been adopted and is commonly
used for establishing and implementing plans for public projects.
There are diverse forms of ADR. When the parties concerned fail to reach an
agreement by themselves due to the severity of the conflict, a third party steps in
to offer conciliation, mediation, arbitration and adjudication services. The most
frequently used method among these is the use of mediation involving an expert
to settle disputes, in which the Ombudsman is keenly interested.

17
AD R
Alternative Dispute Resolution (ADR) refers to various alternatives for settling disputes
different from traditional ways of litigation. The number of ADR cases has soared in the
public sector as a preemptive solution to dispute resolution, but most of them have failed.
The OK selectively reviews mediation and agreement because they show higher
satisfaction level among the various ADRs.
3. Implementation strategy: developing a new tool for boosting satisfaction level and
realizing the vision of the nation
Because of the intensification of social conflicts around the nation, interest in ADR
is gaining popularity as a third alternative. Within the Ombudsman of Korea, the
necessity to go beyond traditional dispute resolution methods to improve
satisfaction level among complainants has risen. Specifically, mediation and
agreement are the types of ADR which have emerged as a promising method of
addressing complaints.
The advantages of mediation and agreement in handling complaints are as follows:

① an effective conclusion can be reached (with a chance to understand the other
party's position), ② a mutually agreed upon conclusion can be drawn up (second
and third alternatives are offered by each party), ③ social and emotional tensions
can be eased (like shaking hands) between parties concerned, ④ complaints can
be settled ultimately (without resorting to litigation and appeals), ⑤ the
incomplete areas of the law can be complemented (where provisions have not
been specified), and ⑥ bigger conflicts (exerting power or filing lawsuits) can be
prevented.
The Ombudsman of Korea has know-how and experience concerning handling

complaints and takes pride in having served as a mainstay ombudsman
organization. The OK has the legal authority to investigate and make
recommendations when a complaint is filed. The Ombudsman also has weaknesses,
however: the OK has a fixed procedure of investigation and decision-making, the
satisfaction level and acceptance rate of complaints are on the decline, and
recommendations made by the OK lack binding power to have their decision
implemented.

18
An independent Ombudsman Act was enacted in 2005 and the OK now enjoys
support from the policy makers and a wider understanding of the role it plays in
society. Yet, expectations for satisfactory complaint handling have soared.
Organizations with similar ombudsman functions were established, such as the
National Human Rights Commission of Korea and the Korea Independent
Commission against Corruption. Also, the people's desire to have a small
government runs high, which comes as a threat to the Ombudsman. Based on this
analysis, the Ombudsman selected mediation and agreement as the way to boost
satisfaction regarding complaint handling.
⇨ Finding new ways through causal analysis

Find new solutions that suit the vision of the Ombudsman of Korea,
the ultimate ending point of complaints against the government
Select and concentrate on mediation and agreement among ADR
strategies
Implementation strategy ; Fostering ADR

⇪
Regularly meet for Share information Encourage
mediation and mediation and Give feedback
on mediation and
agreement and agreement agreement through through evaluation
manage issues education
• Role and pride as ombudsman • Fixed process system

• Large supply of complaint handling • Decrease in satisfaction and
know-how acceptances of complaint
• Authority to investigate and make • Lack of binding power Mediat
recommendations on complaints ion
Strength Weakness agree
The Ombudsman of ment
Korea adopt
Opportunity Threat ed as
policy
• Expansion of legal grounds with • Higher expectations for complaint
goal
the enactment of law handling
• Support from policy makers • Emergence of similar ombudsman
• Better understanding of the organizations
Ombudsman • Aspiration for small government

19
Chapter 2. Shift From Complaint Handling to Settlement
1. Legal ground
After selecting mediation and agreement as the strategy to be used, the
Ombudsman of Korea enacted the Act on the Establishment and Operation of the
Ombudsman of Korea in order to generate the legal ground for fostering
mediation and agreement in Article 34 of the Ombudsman Act.
2. Information sharing and strategic management of mediation and agreement

Within the OK, insufficient information sharing among investigators was identified
as a source of problem. To address this issue, mediation and agreement cases are
registered in the Knowledge Management System (KMS) so that information is
shared within the OK.
Act on the Establishment and Operation of the Ombudsman of Korea

Article 34 【Mediation ․ Agreement】
Multi-party complaints which have large social effects and which need to be resolved
promptly and impartially may be mediated at the request of the parties concerned or by
virtue of the office. (Enforced on October 30, 2005)
※ Article 45 (1) under the current Act on the Anti Corruption & Civil Rights Commission
Most cases that are possibly resolved through mediation and agreement have
multiple complainants with diverse viewpoints, show extreme conflicts of interest,
and may result in second and third complaints and social issues. These cases
should be managed separately. In the past, cases with 30 or more involved parties
with no smaller than three billion won at stake were handled as major
complaints. Yet, such major complaints have been expanded to include those with
only five or more parties involved and they are strategically managed in a
separate register.

20
□ Complaints filed by five or more complainants (January 1, 2004 ~ December 12, 2008)
Number of
2004 2005 2006 2007 2008
complainants
5 ~ 9 complainants 112 124 73 101 83
10 ~ 19 complainants 126 123 60 79 50
20 ~29 complainants 67 70 30 49 29
30 ~49 complainants 115 111 50 41 34
50 ~99 complainants 132 150 45 52 49
100 or more complaints 338 394 171 130 89
Total 890 972 429 452 334
3. Mediation and procedural phases

The OK's complaint handling process is divided into five phases, which are:
document review, on-site investigation, participatory investigation, mediation
meeting, and a mediation meeting. The OK developed management methods for
each phase.
1) Document Review
First, the possibility of resorting to mediation and agreement is determined for
the received complaints; in particular, transferred and notified complaints are
actively reviewed. Transferring and transmitting complaints that do not fall under
the OK's jurisdiction is minimized by handling the cases based on the opinions
received from the concerned organizations. Through requesting information and
the process of handling complaints, the OK determines whether complaints can
take the advantage of mediation and agreement. Before documenting a case, the
Ombudsman talks over the phone with the complainant and defendant to
understand their position and gauge the possibility of compromise. The complaint
summary should show the possibility of agreement so that from the start of
complaint handling, mediation and agreement is considered. Complaints with five
or more parties are managed systematically in the mediation and agreement
register. (the number of cases received is expected to stand at 1,400 in 2006, up
33% from 2005.)
2) On-site investigation
A meeting is prepared where the complainant and defendant can be heard out and

21
the agreement recommendation is reviewed. The complainant and defendant, along

with other interest parties who also may be in attendance, are encouraged at the
meeting to reach an agreement. The on-site investigation report should show the
possibility of agreement so that second stage of on-site investigation or
participatory investigation is conducted if there is a possibility of agreement. In the
case of a major complaint, the team leader is encouraged to conduct the on-site
investigation to instill confidence in the complainant. An interview with the policy
maker of the administrative agency gives insight into the possibility of agreement.
Expert adviser of each team or members of an advisory commission accompany
on-site investigations that need expertise of specialists. For all complaints with five
or more parties, an on-site investigation is in 100% of cases required to be
conducted. The mediation and agreement register should show the date, place, and
result of the site examination.
3) Participatory investigation
A participatory investigation document should show the possibility of agreement
and be reported to the (standing) ombudsman. The ombudsman reviews ways to
settle a complaint first by agreement, not just by looking at legal aspects. If the
on-site investigation report shows agreement is possible, the investigation team
leader as well as standing ombudsman should do a participatory investigation.
During the participatory investigation, it is mandated that expert advisers of each
team or members of an advisory commission participate in order to seek the
advice or alternative review opinions of relevant specialists. The principle is that
20% of cases with five or more parties need a participatory investigation (280
cases annually, 30 annually per investigation team)
4) Mediation meeting
A mediation meeting plan should have the possibility of mediation and agreement
before it is reported to the Chief Ombudsman or an ombudsman. If the
possibility of mediation and agreement is confirmed during on-site investigation
or participatory investigation, mediation meetings presided over by an
ombudsman, other than the Chief Ombudsman, are conducted. If necessary,
on-site mediation meetings are held in which an expert adviser of each team and
members of an advisory commission should participate. In principle, about two
percent of complaints with five or more involved parties need mediation
meetings. (30 cases annually, three per investigation team annually) Also, for
major complaints with multiple persons and far-reaching ripple effects on society,
an on-site mediation meeting is advised.

22
< Mediation Procedure >
1st Phase (Start of mediation): preparation and formation

- Receive and approve requests for mediation, confirm the intentions of the disputing parties
- Explain mediation, make conditions understood for the proceedings. and answer questions
↓
2nd Phase (Analysis of the causes): separation of people from the issues
- Find the causes of each party's complaints and differences
- Analyze different causes, determine the priority of mediation
↓
3rd Phase (Determine the interests): focus on what the parties's interests are, rather than their stated position
- Separate the stated position and interests of the parties
- Utilize chunking methodology
↓
4th Phase (Brainstorming in search of a solution): create mutually-beneficial alternatives
- Apply objective criteria and make a reasonable choice; explore, evaluate and choose alternatives
for each cause
- Formulate a specific plan for implementing alternatives for each cause
↓
5th Phase (Agreement): Objective criteria and reasonable choice
- Formulate an written agreement, review the agreement, have it signed
(by the parties and by the mediator)

23
< Checklist for Mediation Meeting >

Exploration
Understanding issues and
Do you fully understand the issues being disputed and the parties concerned?
parties concerned
Forming the working-level
Did you form a working-level team for the mediation meeting?
team
Confirming parties
concerned and Do you know the concerned parties and their representatives?
representatives
Forming and notifying a Did the representative of the consultative body share the information on the
consultative body formation of the body?
Formation of consultative body
Sharing opinions with Are opinions on the major issues and is the level of involvement fully
participating exchanged between and with the representatives participating in the mediation
representatives meeting?
Written consent Do you have the written consent of the parties concerned?
When selecting a representative, are the opinions of the parties concerned and
Hearing opinions
the participating experts are given full weight?
Basic management guidelines
Basic management Do you have the basic management guidelines for an efficient mediation
guidelines meeting?
Selecting a moderator Did participants consent to the choice of moderator?
Are the basic management guidelines formulated based on discussion and
Confirming guidelines
agreement?
Start of mediation
Raising items Do participants share the content and issues to be discussed?
Is the moderator fair and impartial?
Moderating
Are participants sincere and earnest during discussion?
Did the moderator make an effort to secure evidence needed for reaching an
Collecting evidence
agreement?
Are meetings scheduled regularly within a certain time frame?
Are the following matters taken into consideration in determining the meeting
Meeting schedule and period?
period -a legal deadline/the gravity of situation/interest, determination and efforts of
the parties concerned/geographical distribution of stakeholders/further collection
of information and need for a fact-finding investigation
Preparation of a mediated agreement
Does the moderator initiate mediation based on the objective evidence?
Discussion and mediation Do the moderator or participants distinguish matters that can be agreed on
from those cannot, and try to widen the area of agreement?
Was a draft agreement prepared according to the management principles
Mediation and draft agreement
mutually agreed upon by the parties?
Completion of the mediation agreement
Is the wording of the mediation agreement adequate?

Are the signatures of the participating representatives on the mediation agreement proper?

24
Chapter 3 Impediments and Improvement Efforts
1. Impediments found in causal analysis

The OK staff is used to the practices which have been used in the past for
receiving and processing complaints and they have misgivings about the adoption
of a new system. Also, after the enactment of the Ombudsman Act, the reduction
in the number of days for handling complaints, the obligation of keeping registers
and making reports, and the multiple rounds of negotiation required for a
successful mediation have increased their burden. All of these have made them
victims of the "change monster"2) and have resulted in a decline in mediation
rate.
2. Impediments found during mediation

Impediments can be found both from the side of complainant and the side of the
administrative agency. On the complainant side, there are cases where they have
disorganized or unsubstantiated arguments; where an agreement fails to be
reached because of the lack of understanding about systematic limitations; and
where the representative of multiple complainants does not have the proper
authority and therefore the representative has to make an additional request at
the final phase of mediation.
On the administrative agency side, policy makers often fail to participate in

mediation due to time constraints. Sometimes administrative agencies do not
understand mediation and say they will challenge the legitimacy of a corrective
recommendation issued by the OK.
3. Strategic approaches for overcoming impediments

The Ombudsman began to strategically approach internal and external plans to
overcome impediments in order to facilitate reaching an agreement by mediation.
Internally, first of all, a plan for facilitating mediation and agreement was
implemented on March 30, 2006, the key points thereof being that information
was to be shared through the Knowledge Management System (KMS) and that the
Chief Ombudsman would preside over mediation meetings. For information
2) The change monster is a symbolic phrase that describes a complicated organizational

dynamic that becomes apparent whenever an important change is tried, just like a dragon
rising above the surface of water. (The Change Monster by Jeanie Daniel Duck)
25
sharing, basically, cases are exchanged in a free environment, such as "talk-talk

time" held on a team basis. Additionally, mediation and agreement cases are
disclosed in the KMS and exemplary cases are shared at an innovation lecture for
all staff.
The first method could go only so far in terms of substantially facilitating

agreement, however, so a second internal scheme for overcoming impediments has
been adopted with the aim of strengthening the assessment system. Mediation and
agreement efforts are assessed and incorporated into the investigator and
investigation team's performance report. Also, incentives of 1.5 times higher credits
on a balanced scorecard are offered for those who have completed mediation and
agreement training.
Considering that the resolve and expertise of investigators is essential for the
reaching of an agreement by mediation, strengthening expertise through training
has been chosen as a third scheme for removing impediments. Special training
related to mediation and agreement interlinking strategic training and voluntary
training were conducted. Participants were divided into voluntary and mandatory
trainees. Evaluation was conducted on the lecturer and the contents of the
training (whether trainees were satisfied with the training, whether they got
practical help, whether they felt it would be good to maintain and enhance
training courses, whether they found the training acceptable, and whether they
thought the trainer was well-chosen) to find effective ways for improvement. Also,
presentations about mediation and agreement cases have been conducted for the
benefit of investigators.
Externally, first, in order to facilitate mediation practices among civil servants, OK

ombudsman lectures and in-depth seminars are being offered for civil servants
who have elected to sign up. During the lecture and seminar, the ombudsman
mindset is promoted and exemplary mediation cases are shared. Relevant
documents are provided to be utilized in handling complaints.
Second, planning and promoting efforts have been made to enhance mediation and
agreement practices. Under the Ombudsman Act, decision makers of administrative
agencies are encouraged to participate in mediation. Aggressive promotion activities
related to mediation and agreement have helped to enhance awareness about
mediation. Guidance and explanation for participants has been thoroughly provided
before mediation.

26
Chapter 4. Mediation and Agreement Statistics and Trend
1. The sharp increase in and spread of mediation

○ In 2005, there were 2,441 cases of corrective recommendation and official opinion and
3,313 cases of settlement by agreement. As of 2008, the corrective recommendation and
official opinions numbered 1,740 while settlement by agreement 3,985.
□ Complaints received and handled (2004~2008)

Outcome
Correct
Filed Mediati Deliber Transf Closin
cases Total
ive *Impro Expres
recom vement sion of
on and ation Dismis Rejecti er and Guidan g ․
agree guidan sal on transmi ce withdra
mendat of opinion
ment ce t wal
ion system
Total 122,212 121,382 6,789 26 1,822 17,813 25,912 4,466 4,452 12,030 30,873 17,199
2004 18,728 18,843 999 12 351 4,205 2,582 147 33 1,799 7,788 927
2005 24,677 23,204 2,196 6 245 3,313 4,338 113 80 5,591 6,100 1,222
2006 27,754 28,453 1,141 8 335 3,381 6,287 2,087 1,708 3,649 6,451 3,406
2007 23,681 23,373 1,167 - 437 2,929 5,865 1,256 1,399 554 5,644 4,122
2008 27,372 27,509 1,286 - 454 3,985 6,840 863 1,232 437 4,890 7,522
* The improvement of system has been implemented and managed separately from handling
complaints since 2007.
The statistics are all the more meaningful because the mediation and agreement cases are
evenly spread out, except for particular cases concerned with general planning and land
planning. This is true even though the evaluation criteria for mediation and agreement have
become stricter since the enactment of the Ombudsman of Korea Establishment and
Operation Act in 2006.

27
□ Cases handled by area (2008)
Correcti Mediatio Delibera Withdra

Expressi Transfer
ve n and tion Dismiss Rejectio wal of Guidanc
Total on of and Closing
recomm agreem guidanc al n complai e
opinion transmit
endation ent e nts
27,50
Total 1,286 454 3,985 6,840 863 1,232 437 1,819 4,890 5,703
9
Construction 1,079 33 9 183 523 3 60 6 101 109 52
Police 2,567 66 15 237 360 54 18 5 191 1,103 518
Education 352 2 7 169 50 - 6 - 24 8 86
Traffic 1,143 15 17 253 457 27 56 101 64 52 101
National
1,152 48 15 208 209 19 40 4 104 184 321
Defense
Military 38 1 - 15 2 - 1 - 5 4 10
Labor 963 23 8 34 266 2 133 41 54 193 209
Agriculture
899 11 40 115 338 72 73 19 54 43 134
Forestry
Road 2,113 185 121 461 673 71 86 30 226 122 138
City 2,662 555 40 329 651 417 160 6 210 140 154
Culture Tourism 501 7 - 73 130 1 35 1 27 39 188
Civil litigation 1,535 - - - - - 1 - 19 1,251 264
Broadcasting
284 3 135 78 - 11 3 6 33 15
Communication
Health and
1,481 22 24 179 473 - 59 69 87 174 394
welfare
Veterans' affairs 1,129 9 7 58 93 6 36 2 27 254 637
Industry
828 6 8 190 297 2 61 - 54 86 124
Resources
Taxation 1,477 173 69 191 149 160 69 79 139 66 382
Water
344 60 5 70 83 20 13 7 41 14 31
Resources
Foreign and
inter-Korean 145 - 1 26 61 - 1 1 8 37 10
affairs
Personnel
284 4 6 64 81 - 22 2 28 13 64
administration
Finance 829 5 4 147 79 - 20 1 51 206 316
Housing 2,191 34 16 438 1,144 2 180 23 158 63 133
Maritime
126 - 4 40 36 1 12 1 13 1 18
Fisheries
Public
administration 853 18 12 171 309 2 41 7 50 84 159
Security
Environment 1,039 6 26 196 288 4 35 1 52 18 413
Others 1,495 - - 3 10 - 3 28 26 593 832

28
2. Greater satisfaction with mediation and agreement

The level of satisfaction with the settlement process turned out to be highest for mediation
and agreement, compared to traditional dispute settlement methods (such as corrective
recommendation). The satisfaction score stood at 72.9 for the OK's general complaint
handling, 78.2 for settlement by mediation and 81.4 for settlement by agreement out of a
total score of 100. In terms of satisfaction with the process, settlement by mediation was
positively accepted as shown by its high scores for easy access(94) and convenience(94).
Those scores were higher than those for corrective recommendation(90.3) and issuance of
official opinion(90.3). After all, a consensus has been formed about the alternative wherein
cases can be mediated through wise intervention in stark contrast to corrective
recommendations that can be made only in the case of violations of the law and the cases
of unfair treatment.
3. Overview on mediation meetings
□ Mediation Meetings (2004~2008)

Presider Chief Ombudsman Ombudsman Total
Complai Complai Complaint
Year Meetings nts Mediation Meetings nts Mediation Meetings s Mediation
2004 14 13 7 - - - 14 13 7
2005 22 16 13 - - - 22 16 13
2006 13(6) 13 9 28(9) 31 25 41(15) 44 34
2007 11(9) 10 10 13(2) 13 12 24(11) 23 22
2008 4(4) 4 4 29(14) 29 28 33(18) 33 32
Total 64(19) 56 43 70(25) 73 65 134(44) 129 108
※ Mediation meetings presided over by the Chief Ombudsman were adopted

「」
according to the Guidance on facilitating mediation and arbitration meetings (May 24, 2004)

29
○ Meetings presided over by the Chief Ombudsman

(Bold text: on-site mediation meetings)
Year Date Content Authority Result Area
Not accepted
Annulment of eviction order Korea National Housing
2004 June 16 (Expression of Housing
on rental housing Corporation
opinion accepted)
Governor of Chungbuk Province,
complaint against buffer Mayor of Cheongju, Not accepted
2004 June 16 City
greenbelt along the railroad Mayor of Cheongwon-gun, (Further discussion)
President of Korail
June 16 Continued occupation of President of the Korea National
2004 Not accepted Road
July 21 riverside land Housing Corporation
Revocation of plan for
June 23
2004 Chosan amusement park Mayor of Yangsan Not accepted Road
Oct. 6
development
Not accepted
Revocation of Administrati
2004 June 23 Mayor of Danyang-gun (Correction order
compensation imposition on
accepted)
Supply of housing site for Korea National Housing
2004 June 30 Not accepted Housing
relocation Corporation
Purchase of remaining
2004 July 14 Chief of the Jongno-gu Office Not accepted Housing
buildings
Not accepted
Cancellation of urban Mayor of Seoul,
2004 July 22 (Expression of City
planning facilities (park) Chief of the Dobong-gu Office
opinion accepted)
Approval for building
Not accepted
extension within
2004 Aug. 11 Mayor of Uijeongbu (Expression of City
development restriction
opinion)
zone
Sep. 15
Retention of gasoline Korea National Housing
2004 Oct. 13 Accepted Housing
station Corporation
Nov. 17
Minister of Environment,
Cancellation of waste
2004 Dec. 7 President of the Gyeonggi Regional Not accepted Environment
business expansion plan
Environment Office
Objection to the
2004 Dec. 28 establishment of local Mayor of Yeongdong-gun Accepted Welfare
charnel house
Compensation for Jeolla Not accepted

Jan. 12
2005 railway construction and Korea Rail Network Authority (Expression of Traffic
Mar. 23
request for design change opinion accepted)
Not accepted
Withdrawal of decision on
2005 Feb. 1 Mayor of Gwangjin-gu (Expression of City
social welfare facilities
opinion accepted)
Recognition as those Not accepted
2005 Feb. 16 Korea Water Resources Corporation Water
entitled to relocation plan (Further discussion)

30
Request for change of

Feb. 16 Mayor of Seoul, Not accepted
2005 urban planning facilities City
Mar. 16 Chief of the Gangseo-gu Office (Further discussion)
(road)
Opposition to sand Not accepted

Feb. 17
2005 construction of Gyeongwon Korea Rail Network Authority (Expression of Traffic
Mar. 2
Railroad opinion accepted)
Request for additional

Dec 14, 2004 Not accepted
2005 compensation for victims of Mayor of Daegu Traffic
Feb. 22 (Further discussion)
Daegu Subway Accident
Retention of religious
Feb. 25 Korea National Housing
2005 facilities within housing Accepted City
Mar. 11 Corporation
development site (Pangyo)
Proper determination of
Administrati
2005 Mar. 3 reimbursement for Chief of the Nowon-gu Office Accepted
on
negligence in handling seal
Compensation for loss from

2005 Mar. 25 fire due to high-voltage Korea Electric Power Corporation Accepted Industry
wire disconnection
Construction of a moving Korea Rail Network Authority,
Apr. 20
walkway at Sang-gal Mayor of Yongin,
2005 May 6 Accepted Traffic
station of Bundang subway Korea National Housing
July 1
line Corporation
May 24
2005 Retention of a temple Korea Land Corporation Not accepted City
June 14
Opposition of large-scale
logistics facility within Korea National Housing
2005 June 14 Accepted City
housing land development Corporation
district
Retention of Ilsan Korea National Housing
2005 Aug. 11 Accepted Housing
Evangelical Church facilities Corporation
Compensation for losses
Aug. 24
2005 from Janghan Line railway Korea Rail Network Authority Accepted Traffic
Sep. 7
construction
Supply of school site at Korea National Housing
2005 Sep. 29 Not accepted City
acquisition price Corporation
Compensation for closing Minister of Science and Not accepted

2005 Oct. 7 City
livestock farms Technology (Further discussion)
R equest to construct an
Feb. 15 Korea Rail Network Authority
2006 underpath at S inryewon Accepted Traffic
M arch 22 M ayor of Y esan-gun
station
Korea Rail Network Authority,
Establish Obin station of
2006 Apr. 27 Yangpyeong gun, Accepted Traffic
Joongang railway
Mayor of Yangpyeong-gun

31
Report to establish a
2006 May 11 Mayor of Hwaseong Not accepted Welfare
charnel house
Request compatibility of Mayor of Gwangju
2006 May 25 Accepted Traffic
bus payment card Governor of Jeonnam Province
Iksan Regional Construction
2006 June 9 Change of road alignment Accepted Road
Management Administration
C ompensation for
2006 July 25 Korea Water Resources Corporation Accepted W ater
agricultural losses
Provision of land for social
2006 July 27 Chief of the Gangseo-gu Office Not accepted City
welfare facilities
Compensation for the
O ct.
2006 relocation caused by the Korea Water Resources Corporation Accepted W ater
17
dam construction
Compensation for damages
caused by Kyungbu
2006 Nov. 13 Korea Rail Network Authority Accepted Traffic
Express Railway
construction
Daejeon Regional Construction
2006 N ov. 14 O bjection to intersection Accepted Road
Management Administration
R equest for the completion
of land
compartmentalization
2006 N ov. 15 Chief of the Jung-gu Office (Ulsan) Accepted C ity
rearrangement project in
second district in
S eong-an, Ulsan
Compensation for residual
2006 Nov. 21 Korea Rail Network Authority Not accepted Traffic
land purchase
C hief of the Iksan R egional
C onstruction of intersection
2007 M ar. 14 Construction M anagement Accepted Road
for entry and exit
Administration
C onversion of rental
M ayor of Andong,
2007 Apr. 19 apartments to apartments Accepted H ousing
D aehan R eal E state Trust
with parcelling-out contract
Re-deliberation of the
2007 Apr. 20 Ministry of Patriots and Veterans Affairs Commission Accepted Military
Veterans Affairs
Resolve remicon damage stemming
Head of the USFK Base Relocation
2007 Apr. 20 from Pyeongtaek USFK base Accepted Military
Office
relocation, etc.
Improve the structure of
2007 M ay 8 Dong H ongcheon Korea Expressway Corporation Accepted Road
Interchange

32
2007 M ay 23 R ealignment of railway line Korea R ail N etwork Authority Accepted Traffic
M ayor of Namyangju,
C hief of the N amyangju P olice
Traffic safety measures in
Aug. O ffice,
2007 front of P angok M iddle Accepted Traffic
1 S eoul R egional C onstruction
S chool
M anagement Administration,
Korea H ousing C orporation
Relocation of H aeseo M ayor of Daegu,

Aug. 6
2007 E lementary S chool in S uperintendent of the Daegu Accepted E ducatiopn
N ov. 20
Daegu M etropolitan O ffice of E ducation
Aug. Iksan Regional Construction Management

2007 Bridge extension Accepted Road
23 Administration
G eumgok intersection Busan Regional Construction Management

2007 N ov. 27 Accepted Road
structural enhancement Administration
Noise near the road

April Korea Expressway
2008 connected to Incheon Accepted Road
15 Corporation
Bridge
Dispute surrounding the Mayor of Daejeon, Daejeon
establishment of Education Office
2008 May 28 Accepted Education
Daejeon EXPO Superintendent, Korea Land
elementary school Corporation
Busan Regional Construction
- Flood near Milyang River
Management Administration,
2008 Oct. 10 Accepted Traffic
- Disputes arising from Mayor of Milyang, Korea Rail
railway noise Network Authority
Governor of Jeonbuk
Conflicts surrounding
Province, Mayor of Imsil-gun
2008 Dec. 11 relocation policies near Accepted Water
Korea Water Resources
the Sumjin River dam
Corporation

33
※ Under the Ombudsman of Korea Establishment and Operation Act enacted and
enforced on October 30, 2005, an ombudsman also presides over a mediation
meeting.
Request for the reduction Mayor of Pyeong-taek (Gyeonggi

2006 Mar 9 Agreement City
of retention payment Province)
H ead of D aejeon R egional

Remedy on expenses for
2006 M ar 13 C onstruction M anagement Agreement R oad
establishing road facilities
Administration
Mar 28 Rescission of designation

2006 Mayor of Seoul Agreement City
May 16 of urban plan facilities
Apr 14 Delay of concrete mixer

2006 Korea Housing Corporation Agreement City
May 18 factory relocation
Minister of the Construction and

Transportation,
Industrial complex Minister of Maritime Affairs and
2006 May 11 Agreement City
development project Fisheries,
Head of the Nakdong River
Environmental Agency
Relocation of high-voltage
2006 May 18 Korea Electric Power Corporation Agreement Industry
transmission lines
Head of the Daejeon R egional

2006 M ay 19 E levation of road C onstruction M anagement Agreement R oad
Administration
Damages from road

2006 M ay 19 G overnor of Kyeongnam P rovince Agreement R oad
construction
Cancellation of unfair terms

2006 May 25 Head of the Seocho-gu Office Agreement Construction
of construction deliberation
Request for selling bus

2006 May 30 Mayor of Seoul Not agreed City
parking land in lots
Remedies for damages

2006 May 30 from housing environment Head of the Seodaemun-gu Office Agreement Housing
improvement project
C orrections of unfair
2006 June 7 drawing for apartment Korea Housing Corporation Agreement H ousing
building and unit number

34
Head of the Iksan Regional

Change of road
2006 June 9 Construction Management Agreement Road
realignment
Administration
Retention of gas station

2006 June 15 within urban development Mayor of Suncheon Agreement City
zone
Cancellation of imposition
2006 June 16 Head of the Mapo-gu Office Agreement Construction
of charge for compliance
Separate registration on
2006 June 16 Mayor of Siheung Agreement Construction
the building ledger
Repurchase of the land on
2006 June 19 which the road was Mayor of Danyang-gun Not agreed Road
constructed
Cancellation of construction
2006 June 28 Head of the Jungnang-gu Office Agreement Construction
approval conditions
Request for water supply Mayor of Seoul,

2006 July 12 Agreement Environment
facilities Mayor of Songnam
Solution to reduce noises

Mayor of Guri,
2006 July 12 on the street near Not agreed Environment
Korea Railroad Corporation
apartments
2006 July 24 Construction approval Mayor of Gyeongju Agreement Construction
Change of planned route Transportatio

2006 Aug 17 Korea Rail Network Authority Agreement
of Donghae railway line n
2006 Sep 5 Construction approval Head of the Bupyeong-gu Office Agreement Construction
Compensation for losses

2006 Sep 22 from cultural heritage Cultural Heritage Administrator Not agreed Culture
exploration
Retention of the youth

2006 O ct 12 Korea Housing Corporation N ot agreed City
center
Objection to additional
2006 Oct 13 clauses on redevelopment Chief of the Seongbuk-gu Office Agreement Housing
approval
2006 O ct 19 Retention of college land, etc. Gyeonggi Urban Innovation Corporation Agreement City
Agreement
C orrection of the building
2006 O ct 26 Chief of the Jung-gu Office (Further C onstruction
ledger
discussion)
O bjection to subsidies for
2006 Nov 13 M ayor of P yeongtaek N ot agreed E nvironment
scraping cars

35
D amage from sewage

2006 Nov 13 M ayor of Icheon N ot agreed E nvironment
facilities construction
C hief of the G eumsan-gun O ffice ,

C ommissioner of the G uemsan
E stablishment of traffic P olice O ffice, Transportatio
2006 Nov 23 Agreement
safety facilities D irector of the Nonsan Land n
M aintenance and Construction
O ffice
O bjection to construction
2006 Dec 18 M ayor of Namyangju Agreement H ousing
approval conditions
Request to prepare natural
Head of the Southern Regional Forest
2007 Jan 11 disaster prevention Agreement Housing
Service
methods
Request for the delay of
contract execution
2007 Feb 15 Gyeonggi Regional Corporation Agreement City
according to preliminary
agreement
Request for amicable
2007 Apr 24 management of apartment Chief of the Guemjeong-gu Office Agreement Construction
construction
Mayor of Incheon,
Exclusion of housing
2007 Apr 25 Incheon Urban Development Agreement City
development district, etc.
Corporation
Cancellation of a rejection
on the report of sewage
Not agreed
2007 May 16 treatment facility Mayor of Ganghwa-gun Environment
(reserved)
establishment and the
structure construction
H ead of the S eoul R egional
2007 M ay 25 C hange of road design C onstruction M anagement Agreement R oad
Administration
Request for flooding
2007 May 29 prevention against district Mayor of Masan Agreement City
reorganization project
Compensation for business

2007 June 14 Korea Housing Corporation Agreement City
closedown
Housing construction
2007 Aug 31 Mayor of Asan Agreement Housing
project
Resolution of
Korea Workers' Compensation and
2007 Oct 17 reimbursement right of Agreement Labor
Welfare Service
Seungdang village
2007 Nov 19 Maintenance of flaws Korea Housing Corporation Agreement Housing
Objection to an apartment
2007 Dec 4 Mayor of Seoul Agreement Housing
project

36
R ight to education
undermined by the G yeonggi Urban Innovation
2007 D ec 6 Agreement City
formation of industrial C orporation
complex
Approval for a building Constructio
2008 Jan 11. Mayor of Namyangju Accepted
use n
Request for the road Mayor of Yangju,
Transportati
2008 Jan 25. improvement and traffic 25th Division Commander of Accepted
on
safety measures the Korean Army
Improvement of an elevated 8th Infantry Division
National
2008 Dec 18. constructed obstacle in Commander of the Korean Accepted
Defense
Galmak-eup, Cholwon-gun Army
Pedestrian walk
construction near the
2008 Feb 12. Mayor of Gyeongsan Accepted Housing
entrance of an
apartment complex
Cancellation of the
Head of the Goyang District
2008 Feb 28. imposition of the Accepted Taxation
Tax Office
composite income tax
Reduction of interest for Daegu Urban Development
2008 Mar 11. Accepted Housing
intermediate payment Corporation
Request for redemption
2008 May 27. of intermediate payment Chief of the Suyeong-gu Office Accepted Housing
arrearages
2008 June 10. Relocation measures SH Corporation Accepted City
2008 June 12. Urban planning roads Chief of the Nam-gu Office Accepted City
Supply of apartments
2008 June 17. SH Corporation Accepted City
sold in lots
Establishment of a second
2008 June 26. gate of apartment complex, Mayor of Chungju Accepted Housing
etc.
Registration of a
2008 July 29. Korea Land Corporation Accepted City
ownership transfer
Compensation for housing Agriculture·f
2008 Aug 22. Mayor of Chungju Accepted
purchase orestry
Compensation for Chief of the Seongbuk-gu
2008 Sep 19. Accepted Housing
residential move Office
Removal of military iron
23rd Infantry Division National
2008 Sep 19. railings along Okgye Accepted
Commander of the Korean Army Defense
beach
Correction on transfer Head of the Seodaejeon District
2008 Sep 24. Accepted Taxation
income taxation Tax Office
Objection to a road Head of the Suwon National
2008 Sep 25. Accepted Road
occupation fee Expressway Management Office
Move of overpass and
establishment of soundproof
2008 Sep 25. installations in front of Korea Housing Corporation Accepted Housing
Jugong (Housing
Corporation) apartments

37
Request for revoking the

approval of Hannae
Water
2008 Sep 5. Agricultural Industrial Mayor of Geoje Not accepted
Resources
Complex Development
Plan
Mayor of Gyeongsan
Improvement of an
2008 Aug 27. Commissioner of the Accepted Police
inefficient traffic system
Gyeongsan Police Office
Designation of a site for
2008 Aug 29. religious use within the Chief of the Suyeong-gu Office Accepted Housing
redevelopment district
Exemption from liabilities
2008 Oct 15. arising from the return Mayor of Gyeongsan Accepted Road
of unjust gains
Chief of the Cheongsong-gun
Protection of pine trees
Office,
2008 Nov 14. and utilization of closed Accepted Education
Superintendent of the
schools
Cheongsong Office of Education
Constructio
2008 Nov 6. Building alteration Mayor of Paju Accepted
n
Request for allowing
2008 May 29. charnel house Mayor of Yangsan Accepted Welfare
monuments
Completion of apartment
2008 May 29. construction, building by Chief of the Buk-gu Office Accepted Housing
building
Commissioner of the Yongin
2008 July 23. Allowance of a left turn Accepted Police
Police Office
Change of conditions in
Chief of the Sungdong-gu
2008 July 9. approval for housing Accepted Housing
Office
construction project plan
Korea Expressway Corporation,
Improvement of water
2008 Nov 7. Chief of the Gochang-gun Accepted Road
conduit structure
○ Mediation meetings presided over by an ombudsman

Office

38
< Analysis of Major Mediation and Agreement Cases >
Concerned - Dispute
Amount in
complaint period
mediation Outcome
(number of -Mediation
(tentative)
complainants) period
Compensation for
farming lands
-1 year Provided monetary compensation in line
incorporated into 2.6 bln.
2 months with loss of farming compensation for a
Gunnam flood won
-2 months living
control reservoir
(400)
Extended the length of bridge in front of

Change of road -3 months
3 bln. won the village from 235 to 300 meters toward
alignment (36) -2 months
the closest possible to the river bank
Request the
-4 months 1.4 bln. Elevated the section of 30 meter to
elevation of village
-2 months won prevent inundation
entrance (30)
Indirect Provided indirect compensation for the

compensation to -1 year 220 mln. church, 1.7 meter away from the road, for
church for road -2 months won the reason of noise and environmental
construction (85) damage
-2 year Compensated only road damages without

Reduction of road
1 month 48 mln. won covering expenses for the alternative
facility charge (1)
-2 months facility establishment
Compensation for
Eliminated inconveniences of living,
damage from -4 year
1 bln. won improved quality of life, resolved
railway -3 months
long-lasting complaint
construction (15)
Laid the groundwork for city development

2 bln. won
Construction of -3 year (Decided the linking road and reduced
1 bln. won
railway crossroad 7 months distribution movement)
without
(152) -5 months Provided the dispute resolution model of
settlement
the public organization
Defer relocating
-2 year 1
Doongyang 400 mln. Revitalized the local economy
month
Remicon Seoul won Prevented labor disputes
-4 months
factory
Reduction of 5 bln. won Objectively calculated the rate of housing

-10 months
housing retention in retention charge, rather than unilaterally
-8 months
charge difference determine it without legitimate ground

39
4. Long-term, large-amount, multiple stakeholder complaints
< Long-lasting complaints >
 A section of OO Industrial Producer operated by the complainant was incorporated

into the OOO line which was under construction and the complainant was notified
of demolition and compensation amount → ruling of the Central Land Tribunal→
→
deposit seven months of conflict before vicarious administrative execution orders
⇒ Long-lasting complaints that delayed public works and intensified emotion have
been settled through on-site mediation. (2AA-0605-001702 )
 Import : Restore administrative confidence in delayed public works
< Large-amount Complaints >
 The initial plan was that OO subway line was to be built on the earth banking for
the section in front of apartments owned by the complainants (3,711 people). They
demanded making the section on a bridge in order to provide air circulation, a wide
view and for other environmental reasons, which had long been rejected due to
budget constraints. Yet, the complaint was settled by mediation which concluded
⇒
that a 405 meter section is was to be elevated. The Ministry of Budget and
Planning discussed the issue and agreed on the budget increase of 16 billion won.
(2005Objection5549)
 Import : Resolve conflicts with environmental value and public works project
involved
5. Resolution of complaints between public organizations, or a public and a private

organization
< Public organization vs. public organization >
 The first recorded settlement by on-site mediation is about a complaint requesting

the construction of an underpass as part of the construction of the new Sinryewon
station. The Korea Rail Network Authority and Yesan-gun were shifting the
responsibility of financing the construction back and forth. Yet, the public agencies
agreed through mediation to build a 49 meter-long underground pathway.
 Import : Settlement on sharing construction expenses was made through on-site

mediation presided over by the Chief Ombudsman
< Livelihood complaints >
 Complaints lodged against administrative agencies by complainants or cases that

40
cannot be resolved through recourse to the law can be settled through mediation.
Through mediation, a means of providing a livelihood was awarded to farmers
whose farming lands were incorporated into the Gunnam flood control reservoir
through mediation.
 Import : Policy consideration taken of the farmers' livelihood
< Complaints about an underpass that could not be used

after completion of construction >
 A complaint filed by residents that they could not walk through the Imun-dong
underpass three years after its completion →conflicts between the Korea Rail
Network Authority and the local government about the repair →participatory
deliberation → agreement between the parties concerned → opening of the
underpass
6. Handling mediations that fail
< Failed mediation >
 Some complaints end up being closed by corrective recommendations such

as the complaints by the Seoul Parish of the Catholic Church and the Jungto
Temple of the Buddist Taego Order related to the building of a charnel
house.
 When mediation fails, traditional measures are still open through corrective
recommendation and the sending of notices.

41
Chapter 5. Factors Behind Vigorous Mediation and Agreement

Practices
1. Reform of vision, organization and the performance system

With a clear vision of becoming the ear, heart and feet of the people, the
Ombudsman of Korea directly communicates with the citizens and resolves
complaints by engaging in the complaint-handling process. The Ombudsman takes
pride in addressing even insignificant issues with a firm determination to
ultimately resolve the complaints, which is key to the success of the ombudsman.
In addition, various changes have been made to the organization. A written
provision on mediation and agreement has been inserted into the law with the
revision of the Ombudsman Act. The organizational structure has been reformed to
be a team-based one, which eliminated unnecessary procedures which had been
part of the process of handling complaints. The mediation and agreement rate has
been incorporated into a balanced scorecard index and incentives are given for
settlement by mediation and agreement. As a result, the overall fundamentals for
mediation and agreement have been strengthened.
2. Forums of communication
For better communication between complainants and administrative agencies,
diverse forums for dialogue have been provided in different phases, including
conversing over the telephone when receiving complaints, a participatory
investigation, on-site investigation and the mediation meeting. These opportunities
for discussion help each party form a consensus on the need for improvement of
unreasonable Acts and subordinate statues or systems that cause complaints. When
consensus is formed, it becomes easier to correct the system and prevent the
occurrence of complaints in the first place. Among the ombudsman, a free and
laidback forum of dialogue, "talk talk time" takes place regularly. Also, the KMS
and training courses are employed. All of these efforts have facilitated internal and
external communication.
3. Internal and external specialists:

Investigators with abundant hands-on experience, special experts with theory-based
expertise and the Chief Ombudsman and other decision-making ombudsman who
command respect in society have led the process of dealing with complaints. They
drew attention to the importance, meaning and problems of mediation and
diversified mediation methodology. Their commitment and pride as ombudsman

42
systematized the mediation and agreement of complaint-handling process. Unlike

other organizations with similar functions including the Office of Government
Policy Coordination, whose mediation often ends in failure, the OK made
settlement by mediation an effective way to resolve complaints in a relatively short
amount of time
To reflect the viewpoint and mindset of external experts, the Ombudsman of

Korea runs an honorary human rights ombudsman comprised of elders whom the
public think highly of, policy advisory ombudsman consisting of mid-level experts
and a pool of working-level experts. The Ombudsman is open to input and
feedback from outside specialists who have expertise in their own field.
4. Final Dispute Resolution

Since the Ombudsman of Korea is the final option for the resolution of disputes,
complainants have already gone through lodging complaints. They understand the
government agency's work, type, and the relevant regulations. Administrative
agencies have reviewed and examined complaints repetitively, developing empathy
with the complainant's position. This simplifies the mediation process and makes
it easier for the OK to do this job, compared with other organizations.

43
Chapter 6. Ways to Further Improvement
1. Establish strategic mediation system for social issues

Recently, preventive conflict management is drawing interest in social science
studies in our society regarding conflicts regarding the public sector. Even though
efforts have been made to prevent conflicts, inevitably trouble arises in every
corner of society, leading to conflicts. That is why it is essential to brace ourselves
for further conflicts. The Ombudsman of Korea does not hold ex officio
investigation authority and can investigate cases first when they are filed by a
complainant. Yet, the OK looks at and reviews social issues and conducts studies
on alternative plans for resolving them. The OK has to implement strategic
management systems for the long-term by accumulating various alternatives
through internal studies and joint research with outside organizations.
2. Ensure systematic flexibility to boost the mediation and agreement rate

The Act on the Anti-Corruption & Civil Rights Commission (The Act on the
Establishment and Operation of the Anti-Corruption & Civil Rights Commission)
rigorously stipulates the requirement of settlement by mediation. The Enforcement
Decree on the Ombudsman Act Article 47 and the ACRC Operation Guidance Article
18 provide that if an agreement is reached, a written agreement shall be formulated.
Administrative agencies are reluctant to sign the written agreement for fear of
responsibility being implicated and being audited. Meanwhile, complainants fear that
the written agreement may shut off the possibility of other solutions. The
representative of the complainants balks at the formulation of the written agreement
because of the possibility of an objection. Therefore, it was needed to make
agreement requirements flexible.
Article 42 of the Enforcement Decree on the Establishment and Operation of the

Anti-Corruption & Civil Rights Commission provides for a 60 day period for the
handling of complaints. This is a recommended provision but investigators feel
bound to it both physically and psychologically. Generally, mediation and agreement
require great labors on the part of investigators, so it will go only so far if the
same period is applied to every complaint. Therefore, in the case of mediation and
agreement, a different deadline has to be established, unique from that for other
cases since there is high probability that the period can be extended. In other
words, the time limit of settlement by mediation and agreement needs to be
flexible.

44
3. Maintaining competitiveness of mediation and agreement

The most important factor in mediation and agreement is commitment and the
expertise of the investigators. To ensure these, continuous efforts within the
organization and by individuals should be made. Also, cases of mediation and
agreement take a long time to handle. This calls for a separate time limit and, at
the same time, efforts to find ways to reduce the time they take. Inadequacy
found while carrying out the mediation and agreement process should be linked to
the efforts to enhance the system, and completing standard of procedure for
complaint handling through case analysis is also what should be done in the
future.
○ Reflect in BSC and give incentives

- Develop various incentives to be offered for
Investigator's efforts for
mediation and agreement investigators who continue to work in mediation and
agreement
- This Year's Mediation Award is being planned
○ Improve the case-handling process

- Share more diverse methodologies in each phase
Cut back on the mediation
and agreement period of mediation and agreement
- Provide professional training and share information
through the KMS
○ Develop diverse alternatives

Improve the mediation and - Study decisions of other organizations having
agreement system ombudsman and other decision-making entities
- Ultimately address shortcomings of the system itself
○ Complete guidelines using study cases

Complete the standards of - Analyze accumulated data of cases handled by the
procedure
OK and complete the standards of procedure

45
Part 3 Mediation and Agreement Case Studies
Case 1 : The Change of the Ground-level Railway Section in the

Downtown Area into an Elevated Route
1. Complaint Overview
The Korea Rail Network Authority proceeded with the Gyeongwon Line
double-tracking project utilizing a substantial budget. As part of the Line's route
passed through the downtown area of Yangju City, 3,700 local residents filed a
complaint, demanding that the 1.5km section around the Deokjeong Station be
changed into an elevated route.
The Korea Rail Network Authority took the position that it was impossible to
accept the demand, citing such reasons as that there were no problems raised
when the initial decision on the route was taken. Also, if it accepted the demand
by the complainants, it would require an additional budget allocation of KRW20
billion. On the other hand, local residents contended that the severance of the
downtown area by the railway line undermined urban development and prospect
right. They thus demanded that the railway section be changed into an elevated
section, hence escalating conflict between the two parties.
2. Factual Investigation
Double-tracking of the 23.5km between Uijeongbu and Dongan of the Gyeongwon
Line is a project requiring a total of KRW791.9 billion. The project route had
been decided prior to urban development of Yangju City.
Modification of urban planning owing to the urban development of Yangju City

led to the designation of the vicinity of the Deokjeong Station as a potential
subway station area development site.
If two-thirds of the railway line passing through Yangju City is planned as a

ground-level line and a 13m-high installation (railroad 8m + soundproof facilities
5m) is constructed in the downtown area of the city, it would bisect the city.

46
3. Mediation Process and Outcome

In order to resolve this conflict, the Ombudsman of Korea conducted several
on-site investigations and held mediation meetings. The first-round of meetings
was held with the participation of officials from the Korea Rail Network Authority,
Yangju City and the complainants' representatives. The complainants contended
that if a 13m-high installation is to be built in the downtown area, it would lead
to bisecting of the city. This would cause a sharp clash of interests among local
residents and undermine development of the city due to urban partition. Those in
charge of the project conceded that it is reasonable to construct a railway route
on the periphery of the city or to do it in an elevated or underground manner
when the railway route inevitably passes through a downtown area. However, they
have failed to reflect these considerations. Thus, at the first meeting, the two
parties agreed to conduct a technical review on the proposal of changing the route
in the vicinity of Deokjeong Station into an elevated section.
It was reviewed that only a 460m section, part of the claimed section, including
Deokjeong Station, would be constructed as the elevated section. At the
second-round conciliation meeting, the Korea Rail Network Authority pledged that
it would do its utmost to secure additional funding of KRW10 billion to carry out
the proposed technical review, reaching agreement with the representatives of the
complainants. However, a majority of the complainants argued that it was
insufficient for the government agencies concerned to merely secure the budget.

47
Taking consideration of this position, the Korea Rail Network Authority exerted a
great deal of effort to secure the budget. The additional funding was secured in
the second half of 2006 after two years of efforts. Accordingly, the change to an
elevated section was finally made according to the mediation proposal put forward
by the Ombudsman of Korea.
<Construction works shown under way for changing the route into an elevated section
according to the OK's mediation proposal>
4. Significance of the Outcome

As the design change was made for the 460m section around Deokjeong Station
in Yangju City from ground-level to an elevated construction, it helped avoid
unpleasant urban development which might have resulted from the possible
bisecting of the downtown area. Due to insufficient budget, the Korea Rail
Network Authority had initially thought hard about the facility plan, including the
number of cars parking at the Deokjeong Station. The complainants then
voluntarily presented a mediation proposal that the Authority would not need to
build a large parking lot. This gesture by the complainants set a precedent of
mediation in its truest sense, realizing the principle of private autonomy.

48
Meanwhile, since 2000 complaints had been continuously filed against KORAIL
and the new project enforcer Korea Rail Network Authority on changing the
railway section around Deokjeong Station into an elevated section. However, the
complaints did not show any sign of resolution, even although they went through
the Ministry of Construction and Transportation and the Ministry of Planning and
Budget. Measures to resolve the matter were finally secured through an inspection
by the Board of Audit and Inspection. Ultimately, in 2005, the complaint was
finally resolved through the mediation efforts by the Ombudsman of Korea,
representing a development of great significance.
Case 2 : Railway Design Change for a New Section of the

Janghang Railway Line
During construction of a new section of the Janghang Railway Line by the Korea
Rail Network Authority, 114 residents of Hongseong-eup, Chungcheongnam-do
Province filed a complaint, making the following demands: 1) A design change for
the electric railway section passing through the village of Hongseong should be
made; 2) The width of the underpass should be expanded to ensure future
development of the village and secure space for the passage for vehicles; and 3)
The authorities should establish measures to relocate the villa area located
adjacent to the railway line.
The Korea Rail Network Authority and government agencies concerned took a
position that it would be impossible for them to accept the complaint. Reasons
given included the need for drafting a supplementary budget and the extension of
the project period. As the demand was not accepted, conflict between the two
parties escalated, passing the stage of dispute and leading to collective action by
local residents.

49
Electrification of the main line of Janghang Railway Line (Onyang Hot Spring-
Janghang) and improvement of the railway roadbed were conducted in an effort to
improve decaying rail track sections, secure safe operation of trains, and reduce
transportation time and distance, thereby promoting regional development.
On-site investigations showed that the distance of the ground-level construction

section which passes through the front of the village was approximately 90 meters.
Accordingly, village residents were vehemently opposed to the construction, saying
that the railway section would incur damages, including disconnection among the
village, infringement of view rights, and a possible decline in land prices.
Meanwhile, the railway section of Janghang Line was designed to be built close to
a 16-household villa. Local residents were thus demanding relocation of the villa
as a measure against noise and vibrations.

In a bid to resolve this complaint, the Ombudsman of Korea conducted on-site
investigations and made constant attempts for dialogue. Concerning the relocation
of the villa, the difference in opinions between the Korea Rail Network Authority
and local residents was not narrowed at the first-round mediation meeting, where
they failed to reach agreement. Under the circumstances, the Ombudsman of
Korea presented a purchase compensation proposal. At the second-round mediation
meeting, the two parties agreed on purchase compensation, thus reaching
agreement.
With regard to changing the ground-level railway section to an elevated section

and expansion of the underpass, the Ombudsman of Korea, through ongoing
on-site visits and persuasion, succeeded in gaining consensus by the government
agency concerned on the damage that would be incurred by local residents.
However, the agency concerned adopted a lukewarm position, merely saying that it
would seek measures to prevent damage. As the project period could have been
postponed to an unpredictable future due to local residents' hindering of the
construction, with the agency not accepting the mediation proposal, the agency
finally changed its position and agreed to the design change of the project.

50

What forms the essence of the significant aspects revealed in the process of
resolving conflicts in the public sector was whether trust has been established
between the two parties. Numerous specialized publications and research papers
discuss communication techniques among parties concerned, and this shows that
communication is one of the prerequisites to build trust.
When the Ombudsman of Korea follows a procedure for handling complaints,

including sending the complaint received to the mediation meeting, we witness
first-hand the basic trust of complainants toward the government agency they have
chosen on their own. Complainants visit the Ombudsman of Korea when they
have already lost trust in the administrative agencies concerned following various
complaint-handling processes. Therefore, the future direction of mediation may be
decided based on the extent to which the Ombudsman of Korea maintains its
neutrality in the complaint-handling process and how it presents professional
alternatives by carefully listening to each complaint case and reviewing different
options to resolve the dispute.

51
There are a number of capable investigators and specialists with accumulated

expertise acquired through handling of complaints in the Ombudsman of Korea.
However, the outcome of this case also implies that, going beyond the individual
handling of complaints, measures should be in place to strategically resolve
mediation cases and to invest time and effort for coming up with alternatives.
Case 3. The Establishment of an Underpass in the Sinryewon

Station
Despite the fact that it was desirable to establish an underpass at the time of the
Sinryewon Station expansion project construction, the Korea Rail Network
Authority, in charge of the project, and the Yesan County office, responsible for
constructing the road around the station, were delaying the installation of the
underpass. They each claimed that it was the responsibility of the other party to
pay for the construction of the underpass. Consequently, 125 local residents filed a
complaint concerning the matter.

52
The local residents contended that without the underpass installed they have to
make a long detour, incurring wastage of time and cost. The Korea Rail Network
Authority contended that there was already an underpass installed in the vicinity
of the site scheduled to be expanded. Hence, they argued, there was no reason for
installing another underpass, and therefore it was not prepared to pay for the
cost. The Yesan County office maintained, on the other hand, that it was currently
at the road planning stage, so the Korea Rail Network Authority should construct
the underpass. These contrasting positions of the three parties further exacerbated
conflict among them.
The Korea Rail Network Authorities commenced a construction project involving
the Janghang Railway Line's Onyang Hotspring ~ Janghang section, which
included Sinryewon Station in 2001. As of November 2006, the construction
progress reached 85% complete.
The Yesan County was pushing ahead with the decision-making process for the
long-term basic urban planning facilities to receive the approval for the urban
planning facility (road) by April 2007.

In order to resolve the complaint, the Ombudsman of Korea held preparatory
meetings on several occasions, conducted on-site investigations, and held two
rounds of mediation meetings. The first-round mediation meeting, presided over by
then Chief Ombudsman Song Chul-ho, was held with the participation of officials
from the Yesan County, the Korea Rail Network Authority and complainants. Chief
Ombudsman Song commented that "wisdom of the many should be gathered by

53
more carefully considering the issues, including resolution of traffic congestion

following the future regional development and convenience of railway users." He
thus proposed that the two government organizations equally share the
construction cost. Although consensus on the need for the establishment of the
underpass was formed at the first meeting, agreement on who would shoulder the
burden of the project cost was not reached.
At the second-round mediation meeting held at the site in question, Chief

Ombudsman Song emphasized that "the focus of the discussion should be placed
on how the two organizations could cooperate to alleviate the inconvenience being
experienced by the local residents, rather than continue conflict between the two
parties." He also added that if a mediation agreement was not reached, the Korea
Rail Network Authority would inevitably face obstacles to its rail construction in
the vicinity of the Sinryewon Station. Moreover, Yesan County would have to
construct an overpass, rather than an underpass, once its urban planning was
finalized. This, in turn, would result in estimated construction costs of up to five
times more, thus pressuring the two parties to give the mediation proposal serious
consideration. Finally, mediation was reached as the two organizations agreed to
share on a 50-50 basis the project cost of KRW2 billion for the 49m section
underpass, thus putting an end to the four month-long, difficult dispute.

As the conflict was resolved as intended by the OK's mediation proposal, the
Janghang Line railway roadbed improvement project, including expansion of the
Sinryewon Station, received greater momentum. Moreover, the current construction
cost stood at KRW2 billion, yet if the overpass was to be constructed following
the completion of the station expansion project, the construction cost would
increase to KRW10 billion. Hence, the mediation proposal successfully prevented
an unnecessary increase in the budget.
Internally at the Ombudsman of Korea, this case is assessed as the first successful
on-site meeting. Furthermore, this case bears significance in presenting a new
complaint resolution model for public conflicts, in which unless collective

54
complaints are resolved at an early stage, social conflict will be amplified,

hindering public projects and incurring tremendous costs.
Case 4. The Installation of Traffic Safety Facilities in Front of an

Elementary School
In 2006, there were five cases of minor and serious traffic accidents involving
children in the school zone in front of the Geumsan Central Elementary School.
In response, 970 parents filed a complaint, demanding the installation of traffic
safety facilities, including speed humps.
<School Zone (Children Protection Zone) >
The School Zone (children protection zone) is a system designed to limit

or prohibit the passage of vehicles by designating a certain section
(roads within a 300m radius of the entrance) of adjacent roads of
kindergartens and elementary schools based on the provisions of Article
11-2 of the Road Traffic Act to protect children from the danger of traffic
accidents.

55
Those concerned from the elementary school, Geumsan County, and Geumsan
Police Station accepted the complaint submitted by the parents. They conveyed it
to the Nonsan Highway Maintenance Service Branch Office the road management
agency in charge, asking it to improve road safety facilities. However, the road
maintenance agency responded by citing that in terms of the relevant guidelines it
was impossible to establish traffic safety facilities such as speed humps on
national road as it would escalate conflicts.
The vicinity of the Geumsan Central Elementary School is designated as a school
zone and many students walk to school.
In cases where school zones are on national roads, the Ministry of Construction
and Transportation and the government agency in charge of the national roads
concerned maintain that it is not allowed to install speed humps, in accordance
with the provisions of the "Road Safety Facility Installation and Management
Guidelines." On the other hand, the Ministry of Education and Human Resources
Development expressed support for the installation of such facilities.
<Safety Facilities Installation and Management Guidelines >
[Speed hump installation places] b. The Guidelines stipulate that speed

humps are prohibited from being installed on roads which require high

56
degree of mobility, including major and minor arterials.
It was confirmed that the differing opinions between the administrative agencies
originated from different interpretation of the "Regulations on the Designation and
Management of School Zones" and "Road Safety Facilities Installation and
Management Guidelines."
<Regulations on the Designation and Management of School Zones >
Article 7 【Installation of Road Fixtures】1. The head of the regional

police agency or head of a police station may request the installation of
road fixtures corresponding to any of the following to the road
management agency in charge, when it is deemed necessary to install
road fixtures within school zones... omitted... 3. Speeding prevention
facilities ... omitted ... 6. Besides, road fixtures deemed necessary to
protect children from the danger of traffic accidents by the head of
regional police agency or head of police station and facilities that suit
"Regulations on the Structural and Facility Standards of Roads."

The Ombudsman of Korea selected this case as one for mediation by taking
account of the urgency reflected in the number of road accidents taking place in
school zones. It was also selected as an issue generated by different interpretations
of the relevant laws and guidelines among administrative agencies. First of all, the
Ombudsman of Korea reviewed the relevant laws and gave an accurate
interpretation of them. Moreover, it sufficiently gathered opinions of the
government agencies concerned and organized an on-site mediation meeting,
striving to resolve the issue at an early date.
When laws and regulations concerned are comprehensively analyzed, it was

concluded that speed humps may be installed on collector and distributor roads.
However, speed humps are prohibited from being installed on major and minor

57
arterials, which include national roads and regional roads. This is in line with the
Ministry of Construction and Transportation's legislation intent to limit the
installation of speed humps to prevent serious traffic accidents. The reason for this
is that national roads are basically major and minor arterials with the function of
a large artery of national logistics, so mobility is emphasized on them. More
specifically, when the road is designated as a school zone, vehicles should limit
their speed to 30km/hour or less. This undermines the mobility of traffic on the
national road and speed humps on the national road make it difficult for
high-speeding drivers to respond appropriately, such as by reducing speed.
Accordingly, this raises the potential for serious traffic accidents, such as
overturning of vehicles. Therefore, the Ombudsman of Korea explained to those
concerned that the designation of school zones on national roads takes place in an
extremely limited manner and that the installation of speed humps is prohibited on
national roads.
On the other hand, the Ombudsman of Korea made clear to the parties concerned
that, according to legal interpretations of the "Regulations on the Designation and
Management of School Zones," besides speed humps, requests could be made for
other anti-speeding facilities, including rumble strips, traffic safety signboards,
anti-skid paving, and speeding surveillance cameras. This would be of help in
resolving disputes over interpretation of laws and regulations concerned among
administrative agencies.
The Ombudsman of Korea actively explained to the complainants that requests for
installation of anti-speeding facilities on national roads can be made, even based on
the current laws and regulations. In addition it was clearly explained to them that
road management authorities under the Ministry of Construction and Transportation
may install traffic lights, overpasses, and underpasses to prevent traffic accidents
involving children on national roads when such requests are made. As a result,
administrative agencies concerned agreed to install traffic safety facilities as a
countermeasure on traffic safety problems in the neighborhood of the Geumsan
Central Elementary School.

58

Various types of complaints are being filed with the Ombudsman of Korea and
among them complaints involving more than one party are gradually on the
increase. In other words, the ratio of complaints on issues where the interests of
multiple numbers of parties are sharply in contrast are on the rise, shifting from
individual complaints related to property rights.
In this case, confrontation was created by different viewpoints, as the

administrative agency in charge of the construction and management of roads
emphasized efficiency and mobility in using national roads, whereas the Ministry
of Education and Human Resources Development, the elementary school, and
parents contended that children's safety came first.
Moreover, one of the reasons for the conflict in the case was that the parties
concerned did not give consideration to safety facilities other than speed humps,
even though several other measures, including detour roads, overpasses, and
underpasses were available to resolve the complaint, depending on how the laws
and regulations are interpreted. Thus, this case confirmed that the minimum
prerequisite for achieving mediation is to accurately confirm the facts and fully
consider the pertinent laws and regulations.

59
In normal cases, it is not easy to handle complaints involving multiple parties

through mediation due to the limited time given for handling complaints
(complaints should be handled within 60 days from the receipt of the complaint).
However, in this case study the Ombudsman of Korea reviewed who would be
subject to mediation from the initial stage of receiving the complaint and
simultaneously conducted legal interpretation and mediation preparations. Thus,
this case study also carries significance as a case where mediation has been
achieved within a short period of time.

60

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Alternative Dispute Resolution

Focusing on Mediation and Agreement

The Anti-Corruption and Civil Rights Commission

In an attempt to build complaints handling capacity of ombudsman, members agreed

Korea witnessed a growing number of disputes related to development process over

Part 1 Dispute Resolution Theory ····························································· 1

Chapter 1 Concept of Conflict ········································································································· 1

Chapter 2. History of Dispute Resolution ········································································· 2

Chapter 3. Dispute Resolution Methods ···················································································· 4

Chapter 4. Administrative Mediation and General Procedure in Korea ··························· 6

Chapter 5. The Principles of Mediation ··············································································· 10

Chapter 6. Strengths, Shortcomings and Values of Mediation ······································· 11

Part 2. The Mediation and Agreement at the ACRC ·························· 14

Chapter 1. The Necessity for Settlement by Mediation and Agreement ······················· 14

Chapter 2. Shift From Complaint Handling to Settlement ················································ 20

Chapter 3 Impediments and Improvement Efforts ······························································· 25

Chapter 4. Mediation and Agreement Statistics and Trend ················································· 27

Chapter 5. Factors Behind Vigorous Mediation and Agreement Practices ······················· 42

Chapter 6. Ways to Further Improvement ··············································································· 44

Part 3 Mediation and Agreement Case Studies ······························· 46

Case 3 : The Establishment of an Underpass in the Sinryewon Station ····················· 52

Part 1 Dispute Resolution Theory

Chapter 1 Concept of Conflict

1) Causes of conflict escalation

Anti-Corruption & Civil Right Commission (ACRC) Page 1

Chapter 2. History of Dispute Resolution

Some say the origin of alternative dispute resolution is Mahatma Gandhi's

The Labor-Management Partnerships said that for a mutually beneficial relationship

Anti-Corruption & Civil Right Commission (ACRC) Page 2

In Korea, the administrative litigation system became three-tier on March 1, 1998.

Anti-Corruption & Civil Right Commission (ACRC) Page 3

Chapter 3. Dispute Resolution Methods

The dominant perception in Korea is that negotiation or compromise between the

As society becomes more complex and diversified as a result of informatization and

Anti-Corruption & Civil Right Commission (ACRC) Page 4

Anti-Corruption & Civil Right Commission (ACRC) Page 5

Facilitation is a technique that promotes communications during the meetings

Chapter 4. Administrative Mediation and General Procedure in

Mediation is done in civil, criminal and administrative fields. In the administrative

Anti-Corruption & Civil Right Commission (ACRC) Page 6

< The Process of Mediation >

Mediator's opening statement

Anti-Corruption & Civil Right Commission (ACRC) Page 7

Parties Area Name of Commission Relevant Law Relevant

Governme Administration Consultation Mediation MOGAH

International Contract Dispute Mediation WTO Procurement Agreement, Act on MOFAT

Korea Commercial Arbitration Board Arbitration Act, Enforcement Decree on MOCIE

Consumer Dispute Settlement Consumer Protection Act KCA

Financial Dispute Mediation Act on the establishment of Financial FSS

Environ Environmental Dispute Mediation Environmental Dispute Adjustment Act MOE

Constr Construction Dispute Mediation Framework Act on the Construction MOCT

Anti-Corruption & Civil Right Commission (ACRC) Page 8

Korea Information Security Agency Act on Promotion of Informatization and

MOGAHA: Ministry of Government Administration and Home Affairs

Anti-Corruption & Civil Right Commission (ACRC) Page 9

Chapter 5. The Principles of Mediation

1. Responsibility and voluntary participation

2. Independence and neutrality

Anti-Corruption & Civil Right Commission (ACRC) Page 10

Chapter 6. Strengths, Shortcomings and Values of Mediation

Anti-Corruption & Civil Right Commission (ACRC) Page 11

Anti-Corruption & Civil Right Commission (ACRC) Page 12