The Open Korean Legal Market Yong-Jae Chang Cross-Border Investment Committee Chair, IPBA Lee & Ko, Seoul

1.Globalization of the Korean Legal Market 2.Status of Korean Lawyers 3.Three Stage Process 4.Additional FTAs 5.List of Approved International Law Firms 6.Regulation: Foreign Legal Consultant (FLC) 7.Regulation: Foreign Legal Consultant Office (FLCO) 8.Actions of Korean Lawyers 9.Actions of the Korean Bar Association

3 1. Globalization of the Korean Legal Market Opening of the Legal Market Free Trade Agreement with the EU and the US A process of three (3) stages over a period of five (5) years for opening the legal market to the EU (July 2011) and to the US (March 2012) Expansion of Cross-Border Markets for Foreign Law Firms From 2009 ~ 2012: More than USD 1 Billion was paid to foreign law firms by Korean clients USD 500 Million was paid to Korean law firms by international clients during the same period Caused by a rapid outbound of investments by Korean clients International trade volume of Korea: USD 1 Trillion (Ninth country in the world to join “$1 Trillion Trade Club” – US, Germany, Japan, China, France, Netherlands, Italy, UK and Korea)

4 2. Status of Korean Lawyers As of December 31 st 2012, 14,534 lawyers (Seoul 10,744 / other regions 3,790) 20% have overseas education 10% are qualified to practice in the US and in other countries Increase of lawyers –Increase of new lawyers in 2011: 1,116 –Increase of new lawyers in 2012: 2,067 –Expected new lawyers in 2013: 2,100 Firm Size –Big Six: More than 300 professionals including Korean lawyers, Foreign Licensed Lawyers, CPA, Patent Attorney, and Customs Agent –#7 ~ #10: Approximately 100 ~ 150 professionals –#11 ~ #20: Approximately 50 ~ 100 professionals

5 3. Three Stage Process The opening of the Korean legal market was commenced for foreign lawyers and law firms from countries which are parties to an FTA or other treaty signed with the Republic of Korea. A Three-stage Process Stage 1 Stage 2 Stage 3 Foreign law firms can establish their representative office in Korea and foreign lawyers may register to practice in Korea Foreign law firms can link with Korean law firms and share profits Foreign law firms can establish a joint office with Korean law firms which can hire Korean lawyers

6 4. Additional FTAs Current Status of FTAs with Korea EFTAASEANIndia Stage 1 Stage 2 Stage 1 Contracting Parties Korea – EFTA FTA Korea – ASEAN FTA Switzerland, Norway, Liechtenstein, Iceland Singapore, Indonesia, Malaysia, Vietnam, Myanmar, Philippines, Laos, Cambodia, Brunei, Thailand

5. List of Approved International Law Firms 15 US & 3 UK firms applied 11 US & 2 UK firms approved 7

8 6. Regulation: Foreign Legal Consultant (FLC) How to become a FLC? ‒ Qualification Approval by the Minister of Justice ‒ Registration with the Korean Bar Association What legal services can a FLC provide? ‒ The Laws and Treaties of their “Home Country of License” ‒ Customary International Law ‒ International Arbitration Proceedings Requirements ‒ Overseas legal qualification (currently valid) ‒ No less than 3 years of experience in their “home country of license” ‒ “Home country of license” must be a contracting party of the FTAs or other trade treaties signed with the Republic of Korea ‒ No grounds for disqualification pursuant to Article 5 of the FLC Act ‒ Postal address in Korea and 180 or more days in Korea

9 7. Regulation: Foreign Legal Consultant Office (FLCO) Head Office: ‒ Must be established in a contracting country of the FTAs or other trade treaties with the Republic of Korea ‒ Must pass a resolution or make a decision to establish a representative office in the Republic of Korea ‒ Must guarantee the discharge of civil and commercial liabilities of the representative office in Korea Representative: ‒ Must have no less than 7 years of legal practice experience ‒ Must be a registered FLC

10 8. Actions of Korean Lawyers Increase “Size” Top 6 law firms: Approximately 300 or more professionals including foreign licensed lawyers, CPAs and patent attorneys Top 7 ~ 10 law firms: More than 100 or more professionals Strengthen “Expertise” Recruiting from international law firms Overseas training and exchange programs Facilitated by the increased size of law firms Go “Offshore” China (Beijing, Shanghai, Suzhou) Russia / Uzbekistan Vietnam (Hanoi, Ho Chi Min) / Cambodia / Laos Germany (Munich) / Austria / United Kingdom Unites States of America / Japan Various types of roles and professionals of the offshore office pursuant to local rules “Networking” with foreign law firms

11 9. Actions of the Korean Bar Association Promoting Globalization Networking with Foreign Bar Associations / Law Societies Regulation of Cross-Border Legal Services MOU with KOTRA (Korean Trade-Investment Promotion Agency) Korea forums overseas – 1 st forum in Shanghai & 2 nd forum in Hong Kong, jointly hosted by the KBA, Ministry of Justice and KOTRA IBA Seoul Office Seoul International Dispute Resolution Center Support young lawyers for international conferences IPBA 2013 Annual Conference from April 17 th - 20 th, 2013 in Seoul Strengthen relationships by exchanging visits and joint seminars Exchange internship programs with UK Bar Council To guide and supervise FLCs and FLCOs

Thank You