[Aju News DB]
The decision by Britons to pull out of the European Union could force British law firms out of South Korea's legal market, local sources said.
Such a step will be a setback for the legal firms that have been systematically gearing up to expand their presence in the market since the South Korea-EU free trade agreement went into effect in July 2011.
Data showed that five EU law firms -- Clifford Chance, Allen & Overy, Herbert Smith Freehills, Stephenson Harwood and Linklaters -- have been preparing to enter the South Korean market. These are all Britain-based firms.
In expectation that the FTA will open South Korea's legal sector to outside competition, the British firms have opened offices and even received Foreign Legal Consultant Office certificates from the justice ministry.
Under the bilateral open trade pact, Seoul is set to allow firms with consultancy certificates to provide legal counsel on matters of foreign law to clients in the country starting next month. Such firms can also set up joint law firms with South Korean partners, hire local attorneys and practice Korean law.
Seoul has been opening its market in stages so as to allow local and foreign firms time to adjust, with July's opening to be the third and last phase. The first and second liberalization each occurred with the FTA going into force in July 2013.
"With Britain to leave the 28-member union, British firms will technically not be eligible to provide services in South Korea because the pact only entitles EU member states," a local legal sector observer said.
Others confirmed that the minute Britain legally breaks away from the single market, British firms will no longer be able to do business here, although this separation process may take more than two years.
(Yonhap)
reporter
Park Sae-jin
swatchsjp@ajunews.com
