Korean Judicial System ranks first in Doing Business 2017 of World Bank (published in October 26, 2016)
■ The Korean judicial system ranks first by the World Bank in enforcing contracts.
- On October 26, 2016, 1:00 (local time in Korea), Doing Business 2017 was released.
- Korea is evaluated as the best in expeditious procedure and low litigation cost, which were the previous evaluating indicators.
- In particular, Korea gets the highest score in the areas of court automation based on e-litigation and alternative dispute resolution.
■ Rankings of major countries and the comparison of scores per items in Enforcing Contracts
☞ Comparing to major countries, Korea demonstrates the most expeditious, with low cost, and high level judicial system.
- In Resolving Insolvency, Korea ranks high, in the 4th place, same as last year.
- Korea is ranked 5th in the ease of doing business this year, one step down from the 4th place of last year.
○ Among 190 countries, Korea is ranked 5th in the overall ease of doing business and ranked first in Enforcing Contracts.
○ The effective and outstanding judicial system in Korea is expected to contribute to international credit standing and economic development of Korea.
■ [Reference] Prior to this, the World Justice Project released the Rule of Law Index 2016 in October 21, 2016.
- They have published the index which evaluates the progress of the Rule of Law of the countries over the world.
- The index’s scores are based on the assessment of local people (1,000 respondents per country) and around 24 local experts per country through survey and questionnaire this year.
- Among 113 countries, Korea ranks 8th in Civil Justice.
○ Korea ranked 2nd as for the ‘no unreasonable delay’ factor.
○ In particular, Korea ranked 1st three years consecutively in the ADR area.
< Comparison of major countries >
The Netherlands (rank 1)→ Germany (2) → Norway (3) → Singapore (4) → Denmark (5) → Japan (6) → Sweden(7) → Republic of Korea (8) → ... → the United Kingdom (16) → ... → France (23) → ... → the United States (28)
■ World Bank’s assessment on the judicial system
- The World Bank has annually published Doing Business report based on the results of survey on ease of doing business in countries over the world.
- Doing business 2017 is the comprehensive report which analyzes the relevant laws of countries and the survey of expert groups and covers the period of the second half of 2015 and the first half of 2016.
■ Rankings in Enforcing Contracts
- Rankings since 2010
- It covers across 190 countries over the world.
- Korea has ranked high since 2010 and ranked first in 2017 for the first time.
- Methodology of evaluation
○ They gathered evaluations from experts including lawyers of major law firms of countries of the world.
○ They assume that a specific case of contract dispute is filed in the first instance court in each country and evaluate three factors of 1) time for resolving the dispute through the court, 2) cost, and 3) quality of judicial process.
■ Overall comment
- With the recent continuous improvement of trial system, the ranking of Korea on individual indicators has continuously moved up and entered into top five countries in 2010.
- Since then, Korea has ranked among the highest and ranked first on Enforcing Contracts in 2017.
○ This is an accomplishment made in only two years after the introduction of the indicator of ‘the quality of judicial process.’
○ The indicator of ‘the quality of judicial process’ is the area on which the Korean judiciary has put emphasis for a system improvement, and this result shows that the Korean trial system has been recognized worldwide for excellence in quality in its operation.