Tag Archives: South Korea

Korean Office Round-Up

Posted on November 29, 2012 by | 1 Comment

Last week, Baker & McKenzie was the most recent name in a long line of firms that have been beating a path to South Korea now that the country has begun to liberalize its legal market.  Currently, at least 16 U.S. and U.K. firms have either opened branches in Korea or have announced that they intend to do so.

What a difference a year makes!  It was just a year ago that Cleary Gottlieb became the first U.S. firm to announce plans to enter the market, after the US-Korea free trade agreement resulted in the Korean legal services market opening for the first time to U.S.-based firms.  Cleary’s disclosure was quickly followed by similar announcements from Sheppard Mullin and Simpson Thacher to open offices in Seoul in 2012. All three firms are now open for business in South Korea — Sheppard Mullin in August; Cleary Gottlieb and Simpson Thacher in October.

In February, McDermott Will & Emery signaled its intention to open an office and there was also a flurry of activity in March – the first time that international firms could actually begin applying for approval to set up offices.  Covington & Burling, Paul Hastings, Ropes & Gray, and Squire Sanders, all submitted applications to South Korea’s Ministry of Justice.  Ropes & Gray’s office opened in July, followed by McDermott’s office in September, Squire Sanders’ office in October, and in November, the offices of both Covington & Burling and Paul Hastings.

In June, O’Melveny & Myers signaled its intention to open an office, filing an application with the Korean Ministry of Justice; the office subsequently opened in November.  It was also reported in June by Thomson Reuters News & Insight that DLA Piper, K&L Gates, and McKenna Long & Aldridge had applied to open offices.  K&L Gates was granted approval for its office in mid-November and pending registration with the Korean Bar Association, the firm intends to formally launch in January 2013.

New York boutique Cohen & Gresser also joined the drive into Korea, launching its first overseas office in October.  The firm focuses on complex litigation and corporate transactions, counting Samsung Electronics and Hyundai Rotem among its Korean clients.

So far, Clifford Chance is the only U.K. firm to open an office in Korea.  One of the reasons for the lag in branch office openings by U.K. firms may be due to demographics. According to a report in The Asian Lawyer, U.S. firms have an edge in meeting the requirement that foreign firms have a representative qualified to practice in South Korea, due to the number of Korean immigrants to the U.S.

However, it has been reported that Ashurst is gearing up to launch in Seoul, and firms such as Allen & Overy and Linklaters are known to be active with Korea work.  And recently, Norton Rose chief executive Peter Martyr, shared plans for the further expansion of the firm following the announcement of its merger with Fulbright & Jaworski.  These plans include South Korea as well as other markets such as Brazil, Turkey and the expansion of the New York office.

Posted by Marianne Purzycki

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Monday Clicks: Doing Your Civic Duty

Posted on November 5, 2012 by | 1 Comment

This week it’s business as usual: middling economic indicators for the legal sector, the legal academy is still fretting over the state of legal education, and the Libor scandal continues apace.  There are changes abroad, however.  The Brits are struggling to keep up with U.S. firms in South Korea, and India’s legal sector is experiencing a DIY revolution.  Also: the election keeps plenty of lawyers employed.

  • The third quarter Peer Monitor Economic Index (PMI) has been released.  Tricia Pelton will have an overview of the results (along with the latest jobs numbers for the U.S. legal sector) tomorrow, but the upshot is: demand is down.
  • The Washington Post had an in-depth report on the state of legal education over the weekend. The story chronicles many of problems with the legal academy, while profiling two schools at either end of the spectrum: Erwin Chemerinky’s new “Yale of the West” at UC-Irvine, and the University of the District of Columbia.  Two very distinct visions for the future of legal education emerge.
  • The Wall Street Journal reports on a growing trend as companies seek to decrease their outside legal spend – the increasing visibility and primacy of in-house lawyers.
  • Thomson Reuters News & Insight reports that new draft guidelines from the U.S. Trustee Program aim to rein in legal fees in bankruptcy proceedings.  Law firms are fighting a new requirement that fees must be in line with “market rates.”
  • Lateral hiring has been on the rise for several years now, but in a recent piece for the Global Legal Post, consultants Marc Bartel and Caroline Vanovermeire point out that the practice is not without risk.  They recommend firms hedge that risk by “professionalizing” the acquisition and integration of lateral attorneys.
  • The Libor scandal continues – the New York Times is reporting that the Royal Bank of Scotland will likely face fines.  The announcement comes on the heels of RBS reporting a net loss for the third quarter.
  • We have reported previously on the opening up of the South Korean legal market and the ensuing interest of global firms to expand into Seoul.  The Asian Lawyer reports that this expansion has proceeded, but largely without the involvement of British firms, save Clifford Chance.  Part of the problem is demographics – the influx of Korean immigrants gives U.S. firms an edge in satisfying the requirement that foreign firms have a chief representative qualified to practice in South Korea.
  • The rapidly developing Indian legal market is experiencing an influx of “do-it-yourself” online legal service providers.  According to Forbes India, new online startups are offering DIY legal service in a manner similar to U.S. company LegalZoom.  There are already at least three competing firms on the market, with another to debut in December.

In case you live in a cave, tomorrow, November 6th is Election Day in the U.S. Civic participation is a virtue, so we encourage you to vote.  But rest assured, no matter who you vote for, an army of lawyers is ready and waiting to argue over the outcome.

Posted by Emily Fisher with contributions from Marianne Purzycki

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More Office Openings on the Horizon in South Korea

Posted on June 19, 2012 by | 3 Comments

O’Melveny & Myers has become the latest firm to signal its intention to open an office in Seoul, South Korea, filing an application with the Korean Ministry of Justice.  This announcement follows on the news last week that the Ministry of Justice has given final approval to individual lawyers at three law firms to be designated as foreign legal consultants, an important milestone towards opening an office in the country.  The three firms are Ropes & Gray, Sheppard Mullin Richter & Hampton and Clifford Chance.

The Korean Ministry of Justice officially started accepting applications from U.S. firms in March.  In addition to Ropes & Gray and Sheppard Mullin, other U.S. firms filing applications include Covington & Burling, Paul Hastings and Squire Sanders.  Other AmLaw firms that have previously announced plans to launch in Korea include Cleary Gottlieb Steen & Hamilton, McDermott Will & Emery and Simpson Thacher & Bartlett.

So far, Clifford Chance is the only U.K. firm to submit an application.  However, Legal Week is reporting that Ashurst is preparing to launch in Seoul, with the firm due to file an application within the next month.  Other firms such as Allen & Overy and Linklaters are also known to be active with Korea work.  Last year U.K. firms were granted permission to open offices in South Korea with the approval of the free trade agreement that was signed by the European Parliament in February. 

William Y. Kim, Korea practice chair at Ropes & Gray, says the firm plans to focus on intellectual property litigation in Seoul, according to The Am Law Daily.  The firm’s Korean clients have included LG, Samsung and Daewoo.  O’Melveny, too, has a long history of serving Korea-based clients, including Asiana Airlines, Samsung, and SK hynix.

Initially, U.S. firms will be permitted to advise only on U.S. law, public international law and international arbitration.  In 2014, firms can enter into cooperative agreements with local firms on work that combines elements of international and local counsel.  In 2017, U.S. firms will be able to hire local lawyers and merge with local firms.

Posted by Marianne Purzycki

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All Eyes on Seoul

Posted on March 7, 2012 by | 2 Comments

Tuesday was the first day that international law firms could begin applying to South Korea’s Ministry of Justice for approval to set up an office in that country.  And it was a very busy first day.  Paul Hastings reported that it was the first U.S. firm to submit an application to establish a foreign legal consultant office in Korea.  Squire Sanders also filed an application yesterday, as well as Ropes & Gray.   

And this new activity is following hot on the heels of the multitude of planned launches announced by U.S. firms last December, including Cleary Gottlieb Steen & Hamilton, McDermott Will & Emery, Sheppard Mullin Richter & Hampton, and Simpson Thacher & Bartlett.

With the ratification by both countries of the US-Korea Free Trade Agreement (FTA) last fall, pent up demand by global firms for a presence in a market long closed to foreign firms is quickly being satisfied.  While U.K. firms such as Allen & Overy, Clifford Chance and Linklaters are all active with Korea work, so far only Clifford Chance has submitted a preliminary application to launch an office there.  “We have ambitious plans for our Asia-Pacific operations, and the Republic of Korea is an important part of those expansion plans,” said Peter Charlton, Asia-Pacific managing partner for Clifford Chance.

The allure is similar for U.S. firms.  With solid Korea practices, some stretching back over 25 years, these firms have a strong desire to be on the ground with their clients and to also take advantage of new business opportunities.  Ropes & Gray chairman Bradford Malt, as reported by The Lawyer, noted:

We’re transparent in how we’re working, and we make key decisions jointly. This requires open and easy communication. So being in geographic proximity to our Korean clients, as soon as regulations allow, is something we’re eager to do.

The Korean Ministry of Justice officially started accepting applications from U.S. firms on March 6.   The US-Korea FTA, ratified last November, will come into effect on March 15, 2012.

Posted by Marianne Purzycki

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South Korea Quickly Attracting U.S. Firms

Posted on December 16, 2011 by | 5 Comments

For the third week in a row, a major American law firm has announced that it will open an office in South Korea next year.  Cleary Gottlieb Steen & Hamilton, Sheppard Mullin Richter & Hampton, and Simpson Thacher & Bartlett, have all announced that they intend to open offices in Seoul in 2012.  Pent up demand, which has been building since the U.S. and South Korea agreed to a free trade agreement (FTA) in 2007, is now being satisfied, since both countries ratified the FTA this fall, opening the legal services market to U.S.-based firms. 

Earlier in the year, U.K. firms were granted permission to open offices in South Korea with the approval of the FTA between Europe and South Korea that was signed by the European Parliament in February.  Beginning in July, European Union-based law firms were permitted to open representative offices in South Korea to advise on foreign law. By July 2013, EU firms will have the right to fee share with Korean law firms and by July 2016, firms will be able to enter into partnerships and hire Korean lawyers.  While Allen & Overy, Clifford Chance and Linklaters are all active with Korea work, only Clifford Chance has announced (in February) its intention to open in Seoul. 

Foreign firms must first get approval from the Korean Ministry of Justice before setting up an office and must then register with the Korean Bar Association, in a process that takes approximately three months.

Beginning in January, U.S. firms will be allowed to file applications to open representative offices. In a multi-stage process, the firms are initially permitted to advise on U.S. law, public international law and international arbitration.  In 2014, they will be able to enter cooperative agreements with local firms on work that combines elements of international and local counsel.  In 2017, U.S. firms will be able to hire local lawyers and merge with local firms.

Immediately after the US-Korea FTA was approved in late November by the Korean Parliament, Cleary Gottlieb, with one of the leading Korea practices among international firms, was the first U.S. firm to announce its intention to open an office in Seoul in the first half of 2012.  The firm will initially relocate two Hong Kong-based partners to Seoul for the launch plus a number of Korean-speaking associates.  The firm plans to move most of its 17-lawyer Korea team from Hong Kong in the next two to four years.

Sheppard Mullin announced last week that it would open an office in Seoul in the first quarter of 2012.  Partner Seth (Byoung Soo) Kim, chair of the firm’s Korea practice and currently based in the firm’s New York and Los Angeles offices, will relocate back to Seoul to head the office.  Samsung, Hyundai Motor, and Korea Development Bank are among the firm’s many Korean clients.

Simpson Thacher,  which like Cleary has a large share of the Korean market, announced plans this week to open an office in Seoul “as soon as practicable in 2012.”  Partner Youngjin Sohn will relocate to Seoul, together with several associates from the firm’s Hong Kong office, where the firm’s 10-lawyer Korea team is currently located. The firm represented Goldman Sachs, Morgan Stanley and BoA Merrill Lynch in connection with Samsung Life Insurance’s $4.4 billion IPO, the largest ever IPO by a Korean company. 

Other U.S. firms that are considering launching offices in South Korea include Paul Hastings, McDermott Will & Emery, and Ropes & Gray. 

Posted by Marianne Purzycki

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