Mediation Proceedings and the Necessity of Retaining Legal Counsel

Whenever I have personally represented clients in mediation proceedings as an attorney, the outcome has, in nearly every case, been successful. In the more than a decade since I became an attorney, I have never once encountered a problem arising out of a mediation proceeding. Based on this experience, I have long regarded mediation as a relatively straightforward and manageable process. Recently, however, I came to realize that this view was, in fact, entirely my own.


Why Mediation Is Undervalued in Korea

Most attorneys in Korea are not particularly fond of mediation, and tend to prefer resolving disputes through a court judgment rather than through mediation. This is so even though, from the client's perspective, resolving a dispute through mediation is often more advantageous. I have come to learn that some attorneys, for this reason, either fail to appear when a mediation date is scheduled, or advise their clients that mediation is disadvantageous and urge them to see the case through to judgment instead.


In my own view, however, mediation is a far more advantageous procedure for the parties involved, for the following reasons. First, it brings the case to a swift conclusion. Second, once mediation is successfully concluded, the client can promptly recover payment from the opposing party. Third, a mediation settlement includes a clause barring further civil or criminal proceedings, thereby preventing future disputes from arising.


Because of these clear advantages, I actively encourage my clients — even in cases where litigation has already been filed — to resolve their disputes through mediation whenever the opportunity arises, believing that doing so produces a far more favorable and desirable outcome for the parties. That said, mediation is a process that presupposes a degree of compromise, so I do not necessarily recommend it to clients who have made clear that they are unwilling to give up even a single won. To be candid, from an attorney's standpoint, there are certain respects in which foregoing mediation actually works to the attorney's advantage.


The reasons mediation tends not to be favored from an attorney's perspective are as follows. First, it reduces opportunities to be retained for further proceedings. If a judgment is rendered granting partial victory or defeat, there is a chance of persuading the client to retain the attorney for an appeal; once a case is resolved through mediation, however, that opportunity disappears. Second, in cases with a strong prospect of complete victory, a substantial contingency fee may be expected, but if the case is instead resolved through mediation, the contingency fee is typically reduced, which works against the attorney's interest. Third, unlike judgment proceedings, mediation requires a process of negotiation with the opposing party and, unlike an ordinary hearing date, can sometimes take one to two hours, making it a comparatively inefficient use of the attorney's time.


For these reasons, relatively few attorneys actively recommend mediation to their clients, and I have come to realize that I belong to the comparatively small group of attorneys who do.



A Cautionary Case: Mediation Without Counsel

Recently, however, I encountered the following case. Because the amount in controversy was not large, I advised a client seeking consultation to make use of the mediation committee within a national administrative agency. The client attended the mediation proceeding in person, without retaining counsel, and ultimately received a mediation decision that was somewhat unfavorable.


Although a more advantageous resolution had been available, the client was persuaded by the mediation committee members and ended up agreeing to terms that were, in fact, disadvantageous. To make matters worse, the written mediation decision contained a number of typographical errors, making it difficult even to pursue compulsory execution on the basis of that decision. As a result, a separate correction procedure had to be undertaken, giving rise to a number of additional complications.


In my own view, the root cause of the problem was the client's decision to forgo retaining counsel in order to save a modest sum in fees. In the end, the client expended an unnecessary amount of personal time and energy in an effort to save that relatively small cost. Of course, if one has ample time to spare, choosing to take on that kind of experience firsthand is one option; but I believe it is far more sensible to devote one's limited time and resources to the areas in which one is best equipped to perform.


In my own experience representing clients in mediation proceedings as an attorney, this kind of problem has never once arisen, because carefully reviewing the content of a mediation decision before it is finalized is a standard part of the process, leaving no room for errors such as typographical mistakes to slip through. By contrast, a number of problems were found in the decision received by a party who attended in person without counsel — confirming once again that parties often find it difficult to scrutinize their own cases carefully on their own.


Why You Should Never Attend Mediation Alone

For this reason, I would like to emphasize the following point — both to Koreans and to foreign nationals who plan to take part in mediation proceedings in Korea. Please do not attend a mediation proceeding alone simply to save on costs; I strongly encourage you to retain counsel and appear together. Doing so may, in the end, actually prove to be the more cost-effective choice. Please do not go it alone.


If you attend on your own, you run the risk of receiving an unfavorable mediation decision, and you may even end up with a written decision that cannot be enforced. I have also recently come to learn something new: at the mediation committees operating within national administrative agencies, the staff members responsible for drafting the written mediation decisions are not necessarily held to the same standard of competence as their counterparts at the courts. In court-annexed mediation, a mediation committee member prepares a draft that is then reviewed by a judge, whereas at administrative-agency mediation committees, the staff members involved often lack a comparable level of review capability, which not infrequently results in significant typographical errors. In such cases, the decision may prove impossible to enforce, requiring a separate correction procedure and giving rise to a range of additional complications.


For these reasons, I strongly recommend that, even at some additional expense, you retain counsel to accompany you in mediation proceedings in Korea.


Copyright ⓒ 2026 Mecklin Kim. All rights reserved.

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