In this file photo, people pass by a billboard advertising LawTalk, an online service that connects clients and lawyers, in Seoul on Aug. 4, 2021. (Yonhap)
SEOUL, Feb. 22 (Korea Bizwire) — LawTalk, an online service that connects clients and lawyers, is in trouble, after continued disputes with bar associations have led to a plunging number of members, hurting profitability.
Industry sources said that Law&Company, operator of the mobile legal service app, has begun accepting voluntary retirement from employees, aiming to cut 50 percent of its payroll.
The company decided to move out of its new headquarters in Gangnam, Seoul which they only moved in last June, and ask employees to work from home.
Wages have been frozen, and those in management have had to take a pay cut.
Law&Company has been engaged in an extensive dispute with lawyers since the beginning of the service, which has led to a drop in the number of attorney members. The result was lower profitability.
LawTalk does not charge users commissions. Instead, it profits from the advertisements put up by lawyers.
Last May, the Korean Bar Association penalized attorneys who were subscribed to LawTalk by fining them, which led LawTalk to lose a lot of its attorney members.
The Korea Fair Trade Commission will deliberate upon whether the bar association’s penal measure has amounted to an unfair activity and decide upon countermeasures.
The Ministry of Justice will release its decision on the objections submitted by penalized attorneys in March.
H. M. Kang (hmkang@koreabizwire.com)
