By Gregory C. Eaves
Business Reporter

SEOUL - Jeffrey Jones, attorney at law for Kim & Chang, possibly the largest law firm in Korea, described the legal services market in Korea as being closed and suffering accordingly in a recent interview with The Korea Times.

Through his description of a lawyer’s view of Korea, he painted a picture of a market where the necessity for increased use of legal services is widely acknowledged, especially as Korea stands up on the global stage.

But such demand, required for growth and development, is not being met by the current antiquated, elitist system.

He is not alone.

The European Union chamber of Commerce in Korea (EUCCK), in its yearly publication, described Korea as "one of the last countries in Asia which has not even partially liberalized its legal services market. Despite its commitment to the international community to open up its legal market by 1997, the Korean government has made no effort to liberalize their legal services market to date."

Indeed, such criticism has been followed by action, as there have been "recent and significant progress," said the EUCCK, made in lobbying for the liberalization of the legal market.

But Jeffrey Jones does not approach the subject from a politician’s stance. He lives and works in the legal market of Korea, and, as are many expatriates in Seoul, must be thankful of the pluses found here as he wrestles with the minuses.

To begin with, the market in Korea is somewhat different from the legal systems common in Britain or in the United States. The legal community here comprises four main and distinct types of law firms, Jones said: Korean domestic business firms, Korean international business firms, of which Kim and Chang is one, the "Socho-dong" lawyers, and the global firms.

The "Socho-dong" lawyers, named after their proximity to the court houses in Socho-dong, southern Seoul, generally operate individually, and tend to work on a fixed fee basis covering family affairs, criminal law and other domestic litigations.

That is in comparison to the Korean international business firms, where the lawyers group together in firms of 50 up to 250, and cover mergers, acquisitions, and other international transactions.

The remaining category, aside from the global firms, is the few Korean business firms, which normally comprise between 2 and 10 lawyers.

Global firms, professional with a worldwide reach, are currently barred from opening offices in Korea. As the EUCCK said, "Foreign law firms are not allowed to establish themselves in Korea."

If they were allowed to enter the market, the Korean international business firms would be under threat.

Jones said that Kim & Chang is strong enough to hold its own, with enough confidence, expertise and skill to play in the big leagues. But, he continued, the smaller firms would suffer.

Jones pointed out that the global firms that do operate in the "extremely small" Korean legal services market generally operate out of international centers, such as Tokyo, Singapore or Hong Kong. They fly in, do business, and fly out, he described.

He said that because of the small size of the Korean market, there is little pressure from international firms to open up the market. They can operate well with offices in international hubs, and do not need an office in Seoul. Besides which, the Seoul government forbids them from having offices here.

In describing the legal market as a whole, the American Chamber of Commerce in Korea (AmCham) says that "there exist many restrictions within the Korean legal system: it is small, elitist and closed-market."

Part of the reason for this is the schooling required to become a lawyer. Korea is a culture obsessed with education but that also suffers from its education system.

To become a member of the bar in Korea, the education is difficult, expensive, and extremely closed, Jones described.

The prospective legal professional, most likely a man as women are generally discouraged from studying law here, must attend a 4-year college and study law as their major.

Then the potential judge, lawyer or prosecutor takes the Law Exam, what in the USA is referred to as a Bar Exam.

Only about 1 percent of people who sit the exam pass. As AmCham noted, "From 1997 to 1999, 64,270 candidates took the Bar Exam; 2,013 passed." This does not bode well for the legal education system of the country. But, Jones did mention that these days the Judicial Training & Research Institute, run by the Supreme Court, is allowing more people to pass the exam.

Finishing up his exhausting description of the legal market in Korea, Jones sat back and reminisced about his twenty some odd years in Korea.

When he first came to Korea, for example, the main strip in Itaewon was unpaved. But what he remembered most was the dictatorship. He has been amazed by the democratization to which he has been witness.

That word can certainly be over used, or given too much emphasis, but Jones used it in all seriousness. He described the way in which, when he first arrived on the peninsula, people spoke in whispers. The military controlled everything, people were suspicious of each other, informants abounded, and there was little, if any, freedom. Koreans couldn’t even get passports then, he said.

He is in shock now, as he looked out toward the Sejong Cultural Center from his Chongno offices, at the amount of change he has seen. He now sees an open culture where people dress as they like, talk as they like, and where there is an active opposition in government.

Jones noted that the quality of legal education and services, especially in corporate law, his area of expertise, would improve and become professional if the Lawyers Act were redrawn and if international offices where allowed to open offices in Seoul.