Clifford Chance & Others Moving In On Korean Legal Market
This month's Asia legal goldmine is Korea looking at the amount of articles and press releases we are getting
Here's a story from Bloomberg about Clifford Chance moving to Seoul and then also a general piece from the Korea Herald on the same subject matter
Clifford Chance LLP has become the first foreign law firm to apply to open an office in South Korea since free trade agreements with the European Union and U.S. were ratified last year.
South Korea’s Ministry of Justice is reviewing the London- based firm’s application for preliminary approval, which would take about two to four months, it said in a statement today.
U.S. firms including Cleary, Gottlieb, Steen & Hamilton LLP and McDermott Will & Emery LLP announced plans to open in Seoul soon after the U.S.-South Korea free trade accord was ratified in November. Clifford Chance, which announced its plans before the EU-South Korea agreement took effect in July, has worked with clients in the Asian country for more than 30 years.
“We have ambitious plans for our Asia Pacific operations, and South Korea is an important part of those expansion plans,” said Peter Charlton, Clifford Chance’s Asia Pacific regional managing partner.
STORY 2
Competition in local legal service market set to intensify on FTAs with U.S. and EU
Major American and European law firms plan to enter the Korean market in the coming months, taking advantage of the free trade agreements and signaling a round of cutthroat competition.
Sheppard Mullin, U.S. legal adviser of Samsung Electronics and Hyundai Motor, said in a recent interview with The Korea Herald that it will set up a Seoul office soon.
Two other U.S. law firms ― Cleary Gottlieb Steen & Hamilton and Paul Hastings ― earlier revealed their intention to open a Seoul office this year.
On Thursday, McDermott Will & Emery, a Chicago-based law firm, joined the fray as it put out a press release and confirmed it would enter the Korean legal market by setting up a Seoul office. It said the exact launch date for the Seoul branch is yet to be decided.
As for European law firms, the Justice Ministry said that Clifford Chance, a top British law firm, has applied for a license here and its preliminary application is being reviewed. If passed, Clifford Chance will be the first foreign law firm to make a formal debut in Korea.
The rush into the local market by American and European law firms has been sparked by the Korea-U.S. and Korea-EU FTAs, which will allow foreign lawyers to serve Korean clients.
The American law firms’ interest toward the Korean legal market, which is estimated to be worth 2 trillion won ($1.8 billion), is also in line with the rapid growth of Korean companies on the global market such as Samsung, LG and Hyundai. More Korean firms seek legal advice on various issues, demonstrated by the ongoing patent battle between Samsung and Apple.
In addition, as the Korean market will open up further under the bilateral trade deal, American companies are expected to tap into the legal services provided by American law firms specializing in the local market.
“Under the treaty, we will be representing the Korean companies in their dealings under U.S. law,” said Guy Halgren, chairman of Sheppard Mullin. He said the Seoul branch will also serve American companies entering the Korean market.
Besides Clifford Chance, other major European law firms such as DLA Piper and Allen & Overy are eyeing the Korean legal service market. These firms, armed with their reputation, capital and extensive networks, are expected to have a sizable impact on the Korean market once they set up offices and begin to work with local partners.
Under the FTA with Europe, the Korean market will be opened up in three phases. On July 1 this year, the second phase will start, allowing Korean and European law firms to jointly handle cases and share profits. The third and final phase will take effect on July 1, 2016, which will allow EU law firms to form joint ventures with Korean partners and hire Korean lawyers.
To secure potentially big corporate clients in Korea, American and European law firms are planning to form partnership with Korean law firms, heralding a round of heated competition for forging better networks.
Korea’s top law firms such as Kim & Chang, Shin & Kim, Yulchon currently dominate the local market with hundreds of lawyers each, but the forthcoming debut of foreign law firms will affect the market structure at a time when the country’s legal market is already getting crowded.
Korean law firms are hiring more lawyers and establishing more foreign partnerships to strengthen their competitiveness to better compete with American and European law firms.
