Ashurst has announced via a media note plans to launch in Korea through a new joint venture (JV) with local law firm, HwaHyun.
The JV, which was approved by the Korean Ministry of Justice on 29 November 2022, makes Ashurst the first global firm permitted to practise Korean law since the country began to liberalise its legal market in 2011, the firm said in the announcement.
However, it is understood that the move follows that of global peer, Dentons, which in 2019 announced a partnership with domestic law firm, Lee International, to launch legal services in the market.
Initiated through a 2011 free trade agreement between the EU and Korea, participation by foreign firms in the market is legal through the establishment of representative offices in the country. However, law firms are restricted from practising Korean law unless in partnership with a local firm. This has resulted in Korea’s legal environment being dominated by a small number of longstanding local law firms, such as Kim & Chang, Lee & Koh, and Bae, Kim & Lee.
Ashurst currently has an outbound Korean practice but not a physical presence in the market, a spokesperson for the firm told FinanceAsia. The practice is led by Hong Kong-based partners, John Kim and Huiyeon Kim, and its clients include Hyundai Motor Group, Samsung Group, SK Group, POSCO and Hanwha Group.
“The JV…will allow Ashurst to capitalise on substantial inbound and outbound opportunities and so, allows Ashurst to expand its Korean practice significantly by providing one-stop services to the JV's clients. This also allows HwaHyun to benefit from Ashurst's global presence by increasing its client base at the global level.”
On the firm’s decision to establish a JV at this point in time, the spokesperson said that the firm expects a surge in outbound investments by Korean corporates into Europe and other jurisdictions, prompted by a fall in asset prices.
“The JV will meet increased demand for multijurisdictional counsel due to high levels of market activity. It will also meet the demand from Korean corporates with global operations who need cross-border legal services to navigate complex regulatory systems.”
Ashurst will focus initially on building its local practice across outbound corporate activity and M&A, general corporate inbound activity, inbound investigations and disputes, and international arbitration. “We will of course keep this under review,” the spokesperson added.
The JV will see a number of key lawyers move from other locations to lead the new inititative. Ronnie King, partner at Ashurst’s Tokyo office, and Huiyeon Kim will transfer alongside Kyung-Shik Shin and Sung Ryul Park, from HwaHyun. They will be supported by a team of associates from each firm.
Additionally, Ashurst is “actively recruiting” for its new Korean capability, the spokesperson confirmed.
In the release, Ashurst global CEO, Paul Jenkins, called Asia “a critically important part of Ashurst's strategy” and said that the JV reflects the firm’s ambitions in the market.
Other appointments that Ashurst has made in the region this year include Tom Wilson as international projects group counsel in Tokyo; Jean Woo as managing partner in Singapore; and Yan Yuan as a corporate M&A and private equity partner, in Shanghai.
