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IN THE MATTER OF AN ARBITRATION

BEFORE A TRIBUNAL CONSTITUTED IN ACCORDANCE WITH

THE FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF KOREA AND THE

UNITED STATES OF AMERICA, DATED 30 JUNE 2007

- and -

THE ARBITRATION RULES OF THE UNITED NATIONS COMMISSION

ON INTERNATIONAL TRADE LAW, 2013

PCA CASE NO. 2018-51

-between-

ELLIOTT ASSOCIATES, L.P. (U.S.A.)

(the “Claimant”)

-and-

REPUBLIC OF KOREA

(the “Respondent,” and together with the Claimant, the “Parties”)

PROCEDURAL ORDER NO. 2

The Arbitral Tribunal

Dr. Veijo Heiskanen (Presiding Arbitrator)

Mr. Oscar M. Garibaldi

Mr. J. Christopher Thomas QC

Registry

Permanent Court of Arbitration

14 May 2019

[Page 2]

WHEREAS on 22 March 2019, a First Procedural Meeting was held by video-conference, in which all members of the Tribunal, counsel and representatives for both Parties and the PCA participated;

WHEREAS on 1 April 2019, the Tribunal, having consulted the Parties, issued Procedural Order No. 1, which recorded the agreement of the Parties on procedural matters, and where no agreement was reached, set forth the Tribunal’s directions;

WHEREAS on the same date, the Tribunal invited the Parties to consult with each other in respect of the procedural calendar, taking into account the Tribunal’s directions regarding the sequence of submissions and the time limits to apply in the document production phase;

WHEREAS on 15 April 2019, the Parties jointly submitted to the Tribunal a draft procedural calendar indicating the aspects of the calendar on which the Parties were able to agree as well as the remaining points on which the Parties were unable to agree; and whereas on the same date, each Party set out its positions in respect of the remaining points of disagreement;

WHEREAS on 25 April 2019, the Tribunal invited the Parties to consult with each other in respect of the dates to be reserved for a hearing for each Track of the procedural calendar; and whereas on 10 May 2019, the Parties reverted to the Tribunal with an indication of their availability on the dates proposed by the Tribunal and provided further comments;

WHEREAS this Procedural Order records the agreement of the Parties on the procedural calendar, and where no agreement has been reached, sets forth the Tribunal’s directions in light of the Parties’ views set out in their correspondence of 15 April 2019 and 10 May 2019;

THE TRIBUNAL HEREBY ORDERS:

1. Procedural Calendar in the Event that Bifurcation Is Not Requested

1.1 In the event that the Respondent in its Statement of Defence does not request bifurcation (because it does not raise preliminary objections at all or, even if it raises such objections, does not request bifurcation), the arbitration shall proceed in accordance with the following schedule (Track A1):

[Page 3]

2. Procedural Calendar in the Event that the Respondent Raises a Preliminary Objection on the Basis of Article 11.20(6)(a) Only

2.1 In the event that the Respondent in its Statement of Defence raises a preliminary objection on the basis of Article 11.20(6)(a) of the Treaty (but not on any other basis), the proceedings shall be bifurcated in accordance with Article 11.20(6)(b) of the Treaty. In such a case, the arbitration shall proceed in accordance with the following schedule (Track B1):

[Page 4]

3. Procedural Calendar in the Event that the Respondent Raises a Preliminary Objection (i) on the Basis of Article 11.20(6)(a) as Well as on a Basis Other than Article 11.20(6)(a), or (ii) on a Basis Other than Article 11.20(6)(a) (But Not on the Basis of Article 11.20(6)(a))

3.1 In the event that the Respondent in its Statement of Defence raises a preliminary objection on the basis of Article 11.20(6)(a) of the Treaty as well as on a basis other than Article 11.20(6)(a) of the Treaty, or solely on a basis other than Article 11.20(6)(a) of the Treaty, the arbitration shall proceed in accordance with the with the following schedule (Track B2):

[Page 5]

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3.2 In the event that the Respondent does not raise a preliminary objection on the basis of Article 11.20(6)(a) of the Treaty but it does raise a preliminary objection on any basis other than Article 11.20(6)(a) and requests bifurcation and the Tribunal denies such a request, the arbitration shall proceed in accordance with the following schedule (Track B3):

[Page 7]

Place of Arbitration: London, United Kingdom

Signature

Dr. Veijo Heiskanen

(Presiding Arbitrator)

On behalf of the Tribunal