Regulations and lawsuits are ‘an obstacle’ for companies entering the US market… ‘Speed’ of K Law Firm’s overseas expansion

Since the Trump administration strengthened mutual tariffs, Korean companies' investments in the U.S. and entry into the U.S. market have increased, but the number of cases facing difficulties due to complex legal regulations in the U.S. is increasing. Accordingly, domestic law firms are moving to build networks in the United States and strengthen legal advisory services.

According to a report by the Korea Institute for Industrial Economics and Trade on the 12th, Korea's cumulative investment in the United States increased significantly from about $40 billion (about 55 trillion won) in 2014 to $130 billion (about 181 trillion won) in 2023. During the same period, the number of domestic companies operating in the United States increased by approximately 43% from 11,101 to 15,876.

Experts emphasize that assistance from legal experts is essential for successful entry into the U.S. market. According to a survey by the Korea Federation of Medium-sized Enterprises, mid-sized companies cited rising raw material costs as difficulties in the export market, as well as problems with applying local laws, such as import regulations and customs clearance in export destination countries.

An official from an IT company said, "As we tried to enter the U.S. market without any special advice, we encountered legal issues related to personal information and patents, which delayed the opening of the service."

A global strategy researcher said, “In the United States, regulations from the federal and state governments are intertwined in multiple layers, making it difficult for domestic companies to respond alone,” and advised that it is important to receive help from experts from the early stage in order to respond to regulations such as intellectual property rights and personal information protection from the contract process.

In line with this trend, domestic law firms are also strengthening their support for entering the U.S. market. Daeryun Law Firm signed an MOU with 'Koriny', an American real estate platform company, in March of this year, and has been cooperating with 'Bridgeway IP Law Firm', a law firm specializing in American intellectual property rights, since July to support patent applications and IP licensing practices. An office is also scheduled to open at One World Trade Center (1WTC) in Manhattan, New York.

Daeryuk Aju Law Firm opened an office in Washington, USA in 2022, and Yulchon Law Firm expanded and reorganized its international trade, international taxation, and customs teams into a trade and industry specialty team in preparation for the launch of the second Trump administration. DL Law Firm opened a U.S. office in Silicon Valley early this year and began providing legal services.

An industry official said, "In a complex regulatory system like the United States, it is difficult to enter the market successfully with just a simple contract review," and added, "The demand for law firms with practical experience and knowledge of local laws from the early stages is increasing."

Reporter Hwang Jeong-won (jwhwang@mt.co.kr)

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Regulations and lawsuits are 'an obstacle' for companies entering the US market... K Law Firm’s ‘Speed’ for Overseas Expansion (Shortcut)