Arbitral Protection of Foreign Investments: The Role of the Washington and Seoul Conventions

The article examines the development of the international legal framework governing foreign investments, characterized by a multilayered system of sources and the interaction between public and private law elements. Particular emphasis is placed on the centrality of bilateral investment treaties against the background of universal and regional instruments that structure market access and investor protection. The analysis elucidates international guarantees, including protection against nationalization, expropriation, requisition, and confiscation subject to prompt, adequate, and effective compensation, alongside the principle of good-faith performance of treaties. Institutional mechanisms are addressed through the International Centre for Settlement of Investment Disputes and the Multilateral Investment Guarantee Agency, with attention to written consent to arbitration as a jurisdictional prerequisite and as a limitation on diplomatic protection. It is concluded that treaty-based guarantees, coupled with specialized dispute-settlement procedures, reduce legal uncertainty and reinforce the protection of foreign investments while maintaining a balance between public interests and the rights of private parties.