Four years of foreign law firms in the Korean legal market shows expansion and substance

Four years of foreign law firms in the Korean legal market shows expansion and substance After Dupont and Kolon Industries entered into a settlement agreement resolving all litigation regarding misappropriation of trade secrets earlier this month, Kim Jong Han, the managing partner of Paul Hastings’ Korea office, commented from its headquarters in the U.S., “We are glad that the six year litigation is over.”   Kim represented Kolon Industries since February 2009, when Dupont filed a complaint alleging misappropriation of trade secrets related to Aramid fibers.  Kolon has agreed to pay a settlement of a total of $360 million.  However, Kim says that the sum would have been higher, had it not been for steady communication between Paul Hastings’ Korea office and Kolon’s executives throughout the litigation.  “Ten years ago for a case such as this, Korean executives would have had to travel to the U.S. and spend countless hours calling Korea without even having a chance to overcome jetlag,” he says.  “Having a Korea office is instrumental in allowing us to counsel our clients at a moment’s notice.” Foreign law firms entered the Korean legal market four years ago, and have shown visible results.  By answering Korean companies’ demand for counseling related to international business, foreign firms have steadily established their presence in the Korean legal market.   Recession in the domestic economy has also led to Korean companies expanding into international waters, which in turn has led to increased work for foreign law firms.  An established global infrastructure that foreign law firms possess give them a competitive edge in counseling foreign/international cases and transactions.   Other than Paul Hastings, which became well known for the Kolon – Dupont litigation, Cleary Gotlieb, Ropes and Gray, Cohen and Gresser, and DLA Piper are foreign law firms that are well received by domestic clients, and which are expanding as a result.   This past year, Cleary Gottlieb’s issuance of Korea related securities amounted to approximately $14 billion.  Counseling Samsung SDS and Jaeil Worldwide are but a few on its list of significant matters.  When it first entered the Korean market in 2012, its scale was approximately $12 billion.  As a result of this expansion, 16 lawyers currently based in Hong Kong working on Korean matters will relocate to Seoul by mid 2015.  Lee Yong Guk, the head of Cleary’s Korea office comments, “With respect to overseas issuance of Korean securities, Cleary outperforms the rest.” Ropes and Gray, which was the first foreign law firm to enter Korea, has steadily increased the number of attorneys in its Korea office.  It originally started with two attorneys and increased that number to six, with plans to expand to ten attorneys by next year.  It is also considering relocating from its Yeoksam Dong office to a larger space in order to accommodate the increased number of attorneys.  Ropes and Gray focuses on litigation in patent/IP infringement, white collar, and fair trade, and services many domestic IT companies.  Kim Yong Gyun, the managing partner of the Korea office, comments, “Dupont also filed a complaint against Woongjin for misappropriation of trade secrets, but we were able to settle both civil and criminal claims for $2.5 million. Our Korea office is growing at a much faster pace than expected.”       S.C. Sohn is the Head of the Korea office for Cohen Gresser, which defends Samsung Electronics and LG Electronics in class actions against U.S. consumers that allege problems with televisions, laptops, washing machines and other appliances.  Cohen and Gresser is a boutique law firm with 50 attorneys, which boasts a competitive edge by giving clients a lower fee structure.  Recently, Cohen and Gresser’s team led its clients to prevail on all counts in an international arbitration regarding a cutting edge technology transfer worth 400 billion Won.  Sohn comments, “Although not all foreign law firms in Korea are achieving great results, I know that they are operating at an average level.  The complete opening of the Korean legal services market in 2016 will be another variable in determining success.” DLA Piper manages corporate compliance in the four main Korean businesses (Samsung, Hyundai, SK, LG).  Although it opened the Seoul office in 2013, DLA Piper was able to win its compliance role through its business relationships with the four businesses cultivated for over a ten year period.  DLA Piper’s strength lies in the construction sector, and is involved in litigation and arbitration in this area.  Lee Won Jo, Head of the Korea office, says, “Foreign law firm’s roles have increased, and will continue to increase in the future in line with Korean companies’ expansion into the international market.  We have plans to add one more senior attorney to the team this year, and to bring back attorneys that are currently abroad back to the Seoul office next year.”