"If They Submitted 5 Pages, We Responded with 20"... Bae, Kim & Lee Achieves Complete Victory in 220 Billion-Won International Arbitration [Blueprint of Victory]

After Collaboration Ended with U.S. Medical Device Company,
Ichor Claimed New Drug Rights Against Genexine
Bae, Kim & Lee Countered with Contractual Grounds
Direct Response to 'Document Attacks'... Set Precedent for Defining Scope of Responsibility

"It is highly significant that a Korean pharmaceutical company achieved a complete victory against a global player in an International Chamber of Commerce (ICC) international arbitration case related to new drug development, with a dispute value exceeding 200 billion won."

On June 10, Kim Hongjung, a lawyer in the International Arbitration and Litigation Group at Bae, Kim & Lee, explained the significance of Genexine’s complete victory in an ICC arbitration case against the U.S. medical device company Ichor during an interview with The Asia Business Daily.

Kim Hongjung, an attorney at the law firm Bae, Kim & Lee, is posing after an interview with The Asia Business Daily. Photo by Dongju Yoon

Genexine had signed a contract to use Ichor’s equipment for clinical trials of a cervical cancer vaccine. However, after several years of collaboration, Ichor abruptly demanded exclusive rights and profit sharing for the new drug under development and filed an international arbitration claim worth 223.4 billion won.

◆Claim of 'Future Rights' Not Specified in Contract...Arbitral Tribunal: "No Basis"

The key issue was whether the technology and equipment use agreement for clinical trials could be interpreted as including future commercialization or the development of other indications. Ichor argued that promises of future partnership and profit sharing were established during joint development, but Bae, Kim & Lee countered that the contract was clearly limited to the clinical trial phase, with no language concerning subsequent commercialization or additional projects.

Attorney Kim stated, "There was no basis in the contract to expand the other party’s rights beyond the scope of the agreement," adding, "The fundamental reason the claim was rejected was the lack of clear contractual grounds."

Bae, Kim & Lee also focused on conveying Genexine’s corporate character, not just on legal interpretation. Kim emphasized, "We were confident that the CEO, in-house counsel, and staff were not trying to deceive the other party or seek unfair gain," and "We aimed to present that trust convincingly to the arbitrators."

◆Direct Response to Aggressive Document Requests

This dispute was particularly burdensome for Genexine as the claim amount was comparable to its market capitalization, and the opposing party adopted an aggressive strategy. According to Kim, "We faced an exceptional volume of document requests, uncommon in typical international arbitration cases," and "If the other party submitted five pages of written arguments, we diligently responded with ten or twenty pages, focusing on thoroughly countering every point and filtering out unnecessary requests."

After six months of intense exchanges, the final result was a perfect victory for Genexine. The arbitral tribunal dismissed all of Ichor’s claims and ordered Ichor to cover all of Genexine’s arbitration institution fees, legal costs, and incidental expenses incurred during their stay in London.

This ruling sets a precedent for clarifying the scope of rights and responsibilities during the numerous collaborations between K-Bio companies and global partners in the course of drug development. Attorney Kim remarked, "Contracts at the development stage must be drafted meticulously, even to the point where you wonder if it’s really necessary, to prevent unfair disputes," and added, "This case demonstrates that Korean pharmaceutical companies need not fear disputes with global players, and it is an honor to defend the legitimate interests of Korean enterprises."

This content was produced with the assistance of AI translation services.