| Significant changes are on the horizon following the recent ratification of the EU Free Trade Agreement (FTA) by South Korea. The free trade pact between Korea and the EU, which came into force in July of this year, will impact the legal landscape quite considerably given that European firms will be able to establish a presence in Korea and conversely, Korean law firms will be in a position to develop their overseas practices in Europe.
Korea’s accession to the FTA will not affect US law firms at this stage however. Pending a similar agreement with the US, (which is also on the cards) there is potential for Korea’s doors to open up to US firms in the future too. For now, it is largely the UK firms that are angling for expansion into Korea. Korea is considered one of the final frontiers by international law firms and in-house counsel alike in terms of liberalization, and the new pact hails a watershed moment for lawyers seeking to create a footprint for themselves in what was previously uncharted territory. This key change will potentially see legal titans Clifford Chance, Freshfields Bruckhaus Deringer, Allen & Overy, DLA Piper and Linklaters launching offices in Korea in a bid to strengthen their construction, ship building, intellectual property, telecommunications and financial services there. Numerous other UK firms are also looking to expand their practice and make their mark in Korea. In the same way that Korean firms are eyeing an opportunity to strengthen their connections overseas. The knock on effect of Agreement will be a stronger sense of competition between Korean and foreign firms as they jockey for clientele. One of the limitations imposed by the FTA upon foreign firms however is that they are initially only allowed to provide legal services which are EU related. When the market opens up more fully in 2016, foreign firms will additionally be able to practice Korean law and advise on Korean legal issues. |
EU Free Trade Agreement pact with Korea hails a watershed decision for the legal sector
