Hong Kong and Singapore's international arbitration centres are among a group of institutions which have launched in Korea this week with the opening of the new Seoul International Dispute Resolution Centre (IDRC).

The Hong Kong International Arbitration Centre (HKIAC) and Singapore International Arbitration Centre (SIAC), which are currently competing to become the first choice for arbitration hearings in Asia, have each opened offices in the new campus alongside the London Court of International Arbitration (LCIA) and the Korean Commercial Arbitration Board (KCAB).

The Seoul IDRC, which is located in the Seoul Global Tower Building in the city's central business district, is hoping to attract hearings from across Asia and boost the country's profile as a venue for alternative dispute resolution.

Both HKIAC and SIAC are hoping to enhance relationships with users of arbitration services in Korea and Japan following a surge in hearings from companies and individuals in those markets.

SIAC's decision to open in South Korea follows the launch of a representative office in Mumbai in April, with the centre also hoping to launch a fourth base in the Middle East in the near future.

HKIAC currently has just one branch in Hong Kong, but with representatives working full time in Latin America and mainland China to promote Hong Kong and the HKIAC in those regions.

Leading SIAC's Korean office will be counsel Julia Yu, while HKIAC's base will temporarily be overseen by James Chun, a Korean counsel in Hong Kong.

In the first year, the Seoul IDRC expects to accommodate around 15 arbitrations, and a total of up to 200 hearings within the next five years. Officials say the economic impact of each case is expected to be around $2m.

"Seoul is geographically located at the crossroads between three major economic powers – the US, Japan and China – and there is a great potential for becoming a crucial dispute resolution venue for international disputes between parties of these countries," said a spokesperson.

"Although only four arbitral institutions are planning to open offices at the Seoul IDRC at this time, there are plans to expand the facilities to allow offices of other major international arbitral institutions such as the ICC and the ICDR."

They added: "Positioning Korea as an arbitration hub will stimulate people's interest in the growth of international arbitration as well as improve the quality of legal services.

"We also expect an indirect economical effect by becoming a leading jurisdiction for international arbitration, with many arbitrators visiting Seoul and foreign law firms establishing offices to help vitalise the market."

The opening of Seoul IDRC was supported by the Seoul City Government, the Korean Bar Association, the Korean Commercial Arbitration Board and the Ministry of Justice. 

It will be managed by a board of directors including lawyers from local firms Kim & Chang, Bae Kim & Lee, Shin & Kim and Lee & Ko, as well as the Seoul National University and Ministry of Justice.