It is crucial to review local laws and regulations to avoid unnecessary risks before entering the local market by supplying a pre-existing product or service from overseas startups or establishing a new business in South Korea as a foreign entrepreneur. Many startups and companies make the mistake of doing their research and finding the right legal representation. A lot has to do with the fact that most attornies in Korea do not speak English well. However, there are a lot of great lawyers in Korea who do speak English and have helped foreign entrepreneurs establish a business in Korea. Furthermore, there are some free South Korean legal services (Helpline: 1345) offered by the Korean government for foreigners. However, the free legal service deals with counseling on disputes on domestic, civic, criminal, and labor issues only.
These services were started by the Ministry of Justice in partnership with the Korean Bar Association and the Ministry of the Interior. Therefore this is a great place to go for lease contract disputes or criminal cases.
What about a lawyer for doing business in Korea?
Foreign companies or startups looking to start a business in Korea find it very difficult to get the right legal advice. Information on South Korean legal services for foreign entrepreneurs is very limited. If done incorrectly it is very possible a foreign business in Korea will have to shut down. The same is the case for foreign investors looking to invest in startups in Korea. Any investments that are made disregarding any legal revision, may diminish the profitability of the investment. Paying a small fee for the right legal advice can not only save your company but also save you from having to pay unexpected legal fees.
To prevent these types of issues, we have conducted an interview with Ted Park(Sang oh, Park) from Barun Law LLC.
- 2007 Graduated, Ritsumeikan AP University
- 2013 Graduated, Law School of Sungkyunkwan University
- 2013 Passed, 2nd Bar Exam
- 2019 UCLA School of Law (LL.M.) – Majored Media, Entertainment, and Technology Law and Policy
- 2019 Passed, Bar Exam of New York State of America
Barun Law LLC
Barun Law LLC is South Korea’s fastest-growing and most dynamic full-service law firm. It was founded back in 1998 and is considered one of Korea’s top law firms today. Their office is located in Gangnam and is comprised of over 200 attorneys who along with highly qualified support staff, provide a full range of legal services for foreign entrepreneurs/investors looking to do business in Korea. Best of all they have English-speaking attornies on staff that can answer any legal questions you might have in English.
The firm’s partners include some of the most prominent and well-respected members of the Korean Bar. In addition, they have a highly experienced team of foreign lawyers who adds international savvy and recognized expertise, creating a substantial comfort factor for international clients. They have worked with many foreign businesses that have entered South Korea. These businesses include both large corporations as well as startups.
South Korean Legal Services for Foreigners
Riso: Commonly, it is expected that foreign entrepreneurs would not take any illegal actions. Would it be still necessary for them to be legally advised?
Ted: On the overseas startups or investors’ side, it is difficult to have knowledge about relevant laws and regulations, most of them receive legal support from local law firms or legal experts.
Riso: We have very little knowledge of Korean law firms or the legal market in Korea, would you briefly introduce us to it?
Ted: Forms of legal experts in South Korea can be categorized into “Large”, “Small-Medium(including Boutique Law firms)” law firms, and “private attorneys”.
Large Law Firms in Korea
We generally distinguish it as a “Large Law Firm” when they have over 200 lawyers with various expert teams that can respond to diverse areas of expertise, which is considered to be its biggest advantage. Additionally, the majority of “Large Law Firms” are comprised of accountants, labor attorneys, and numerous professionals from diverse legal and regulatory sectors. As they compensate with high income and quality work conditions, top-tier lawyers tend to work with them and because of that, large law firms get a positive overall reputation on their performance and evaluation from customers. But the demerit of large law firms is that they charge a high price for their services.
Boutique Law Firms in Korea
On the other hand, there are also Small-Medium law firms specialized in particular fields, so-called “Boutique Law Firms”. They offer a similar or superior performance to large law firms. In contrast, there are some Small and Medium law firms that have numerous lawyers gathered but are incapable of working in harmony, which practically makes them lawyers working in a co-working space.
Private Lawyers in Korea
With Private lawyers, it is obvious to have is a gap between each individual in experience and capability. Therefore, since it is impossible to cover experience and expertise in all spheres, although private lawyers may have a great reputation for their performance, they would inevitably have weaknesses in other areas outside of their expertise. Instead, Small and Medium law firms and private lawyers would request fewer fees on legal consulting and cases than large-sized law firms.
Riso: Thanks for the discrete explanation of the Korean legal consulting market. What are the things foreigners should be careful about when it comes to hiring a professional lawyer in Korea?
Ted: When it comes to hiring an attorney, it should be considered synthetically consisting of these types of criteria.
- Career Experience of the Lawyer
- English ability
- Field of issue
- The number of Identical or Similar cases he/she handled.
- Price for service (legal fee, consulting fee)
Working with large-sized law firms, it would be comparatively convenient to designate an eligible lawyer. They have lawyers with above-average level performances. When it is small-medium-sized law firms or private lawyers, as said, they have a significant gap in regard to the quality of service. Though there are good lawyers, you would want to spend enough time prudently reviewing the candidates.
Rise: How are consulting fees assessed?
Ted: There are two methods of calculating consulting fees. First is the “time charge” method, after signing a consulting contract, multiplying time input with price per hour. The second is a fixed rate per case, consulting fee (often divided into down payment + contingent fee) charged regardless of time spent on the case such as contract review or M&A deals.
Riso: What about lawsuit cases? Is it the same?
Ted: Generally, when it’s a lawsuit case, it is paid with a down payment with contingent fees. Depending on the circumstance, a time charge can be applied even though it is a lawsuit case. But, if the lawsuit gets longer than expected it would cost beyond your initial estimates. So time charging may not be rational as it looks since it is charged per time spent.
Finding the Right South Korean Attorney
It is vital foreigners find the right South Korean legal firm or attorney for their business. Those that have businesses in Korea know the sheer amount of paperwork involved in setting up a business, getting investment, and filing corporate taxes. In addition, the skills and experience of a Korean lawyer are critical because some laws apply differently to foreigners. It can be more complex, and unique, and involve different documents/certifications. There are also individuals in Korea who market themselves as Korean attorneys but are not actually attorneys. They do not have the ability to take cases to the Korean court if need be. That is why most use large law firms.
