[Contribution] Korean legal market in crisis, must meet global standards

Today, the Korean legal market is at a crossroads where structural change is inevitable, beyond simple internal competition. Sustainable competitiveness can no longer be achieved simply by taking on more cases or securing talent. What is needed now is a decision and implementation as to whether to stick to the existing office-centered, individual performance-centered traditional structure or to reorganize into an integrated system that meets global standards. In a situation where large American law firms are already institutionally allowed to enter the country through the Korea-U.S. Free Trade Agreement (FTA), unless changes are made, there will be no place for Korean law firms in the next stage of competition.

Nevertheless, many law firms in Korea still look like a single organization on the outside, but in reality, they adhere to a ‘separate system’ structure in which overall operations, including case acceptance, profit distribution, and cost management, are separated into partner units. This is a structure in which the appearance and substance of the organization are inconsistent, and has structural limitations in collaboration, integration, and brand management. On the other hand, the ‘regional distributed-operation integrated model’ commonly adopted by large global law firms is a structure in which offices are integrated and operated under one system even if they are dispersed by region. However, due to a lack of understanding of this, there are many cases in Korea where it is misunderstood as an unfamiliar and inefficient system, or appears in a distorted form as a ‘network law firm’ that only imitates its appearance.

Meanwhile, resistance to the transition to this global system is expressed in the form of regulation through regulations or misleading the media. However, such resistance is inevitably powerless in the face of the huge flow of the global market. The moment large foreign law firms enter the domestic market in earnest, the market order and competitive landscape will be quickly reorganized. This is similar to the case in the past when the iPhone appeared in the domestic market, where existing mobile phone brands immediately took the lead. Therefore, rather than rejecting the introduction of a global system, we must first accurately understand it and implement and operate it ourselves to take the lead.

Daeryun Law Firm was the first to sense this trend of change and set a clear strategic direction in line with it. Daeryun's goal is not to survive domestically, but to grow into a large global law firm. To this end, we have learned and interacted with the systems of major law firms around the world, and while preparing to open Daeryun's New York office, the author also visited the New York headquarters of Milbank LLP and personally saw the practical integrated operating system in which partners of different nationalities jointly carry out one case.

Based on this experience, Daeryun has established an integrated operation system, case sharing system, and centralized risk and accounting management system among offices across the country at a level that meets international standards. In addition, we are actively reviewing and preparing for implementation of various forms of practical global cooperation, such as strategic partnerships with foreign law firms, joint brand building, mutual investment, and mergers and acquisitions (M&A).

The reality facing Korean law firms is not a matter of choice. Having a structure and system that meets global standards is a necessary condition for survival, and furthermore, rather than passively accepting the standards, we must actively design them to fit our reality and materialize them in a way that can actually operate. Daeryun Law Firm was the first to detect these changes and is actually creating a structure appropriate for them. Through this, Daeryun hopes to become a standard that suggests the direction in which Korean law firms should move.

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[Contribution] Korean legal market in crisis must meet global standards (Shortcut)