This Dec. 21, 2021, file photo shows the headquarters of South Korea’s justice ministry in Gwacheon, south of Seoul. (Yonhap)
SEOUL, Dec. 1 (Korea Bizwire) – The Ministry of Justice announced that it has approved a joint venture deal between domestic law firm HwaHyun and British counterpart Ashurst LLP.
Since the nation’s legal services market was opened under terms of the free trade agreement (FTA), this is the first time that the establishment of a JV between domestic and foreign law firms has been permitted.
The opening of the nation’s legal services market is divided into three stages, based on the Foreign Legal Consultant Act.
In the first stage, foreign law firms are allowed to set up local offices.
In the second stage, domestic law firms and foreign legal consulting offices can jointly deal with cases when such cases involve both domestic and foreign legal affairs.
In the third stage, the establishment of JVs is permitted between the law firms of open-door countries.
Foreign law firms can have a stake of up to 49 percent in the JV.
They can also exercise voting rights in accordance with the share of their stake. The JVs can employ domestic lawyers and deal with domestic legal affairs.
M. H. Lee (mhlee@koreabizwire.com)
