Legal Service Market
The number of foreign law firms in South Korea is increasing based on the legal service market opening agreement between South Korea and the EU implemented in July. From March next year, U.S. and South Korean law firms can establish joint ventures in accordance with the KORUS FTA.
On October 13, Latham & Watkins was permitted to set up a foreign law consulting office in South Korea. Latham & Watkins has 2,200 or so affiliated lawyers and this number is 2.7 times that of lawyers working for Kim & Chang, the largest law firm in the country. Baker & McKenzie and DLA Piper already established their offices in the country.
In the joint ventures, in the meantime, the share of a foreign law firm is limited to 49% according to the Foreign Legal Consultant Act. Still, it can be engaged in domestic legal advice by hiring a domestic lawyer. Its domestic legal advice can be provided during a South Korean enterprise’s overseas IPO and purchase of a non-South Korean company as well and it can work with a local office abroad during the course, too. This means South Korean law firms’ business can be affected in the field of M&A, IPO and intellectual property.
Under the circumstances, some South Korean law firms are seeing the opening of the market as an opportunity and what they are focusing on are countries like Vietnam, which has a legal service market completely open to foreigners. Yoon&Yang LLC opens its office in Ho Chi Minh City on November 29 and the others of the six largest South Korean law firms have already done so or are planning to do so sooner or later.