Regulation: ban on sharing fees and employing local lawyers

City firms could be allowed to open offices in Korea as early as 2008 after the country's ministry of justice this week published a Bill to regulate foreign lawyers.


A public hearing on the Bill will be held next week. It will then go to the country's national assembly, with approval likely to take a further six months.


The Bill reportedly contains a clause making its provisions available only to countries with which Korea has a free-trade agreement.


However, it is understood that its provisions will begin operating when an agreement with the US comes into force. Subject to further negotiations between the two countries, which must be concluded by 31 March next year, this is expected to occur before the end of 2007.


EU negotiations with Korea aimed at securing a bilateral agreement are expected to start early next year, and take up to 12 months.


Although foreign firms will be able to open offices under the Bill, they will still be prohibited from employing or sharing fees with Korean lawyers.


Law Society President Fiona Woolf said the Bill's publication is an important first step. 'The Law Society has been actively lobbying for the opening of the Korean legal market for over five years. This paves the way for solicitors' firms to open offices in Korea and to offer fly-in fly-out services on non-Korean law.'


Ms Woolf added: 'We will continue to forge opportunities for UK firms to ensure that they do not lose ground on their international rivals, including ensuring that the EU free-trade agreement covers legal services.'


Nick Emmerson, an associate at Eversheds and chairman of the British-Korean Law Association, said: 'There was a concern that the US was marching ahead.. but the EU is now pushing on with it as well.'


A Chancery Lane delegation was in Korea last week, attending a seminar on legal services sponsored by UK Trade & Investment.


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