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The number of occurrences of conflicts between local governments is annually increasing as competition between local governments becomes active since local governance has been put into effect. A method for settling conflicts between local governments should be seriously taken into account for such conflicts have immediate effect on wasting administrative resources. The increased needs for settling conflicts can be explained from the fact that since the importance of financial self-support is getting bigger as each local government seeks autonomous administration, conflicts arise frequently to establish facilities beneficial to each local government. Establishing a PIMFY facility can help promote local economy, leading directly to expansion of local finance. For this reason, local governments are eager for establishing facilities beneficial to the interests thereof. In this regard, this research introduces a case where conflicts between local governments centering around establishment of a PIMFY facility have been successfully resolved. This research introduces the conflict between Nam-gu and Jung-gu of Ulsan city for establishing 'judicial town', which caused intensive competition for establishment, but came to an end amicable for the both, suggesting much of policy implication. This research demonstrates that intervention of third-party arbitration is highly effective in settling conflicts between local autonomies and verifies the above demonstration by analyzing research cases. Along with the announcement of ‘judicial town construction’ by respective local autonomies of Nam-gu and Jung-gu of Ulsan city, competition to establish the judicial town in their jurisdiction became severe as time went by. Settlement of conflict based on mutual agreement between interested parties was the last thing to happen; the intense competition for establishing the jurisdiction town, however, finally came to an end through the intervention of third-party arbitration and construction of jurisdiction town could be started at an appropriate time. More specifically, by analyzing the case of ‘jurisdiction town construction’, this paper tries to demonstrate the necessity of third-party intervention as a conflict arbitrator and validate the effectiveness in settling a conflict.
