The headquarters of Kim & Chang in central Seoul. The law firm has dominated South Korea’s legal market in recent years. Photo by Tae-gyu Kim/UPI
SEOUL, Oct. 24 (UPI) — South Korea’s law firm industry is ruled by Kim & Chang by any measure, while a handful of other companies struggle to catch up with the leader.
In terms of annual revenue, Kim & Chang reportedly posted about $1 billion last year, which was roughly equivalent to the combined revenue of its next four competitors — Lee & Ko, Bae, Kim & Lee, Yulchon and Shin & Kim.
When it comes to the number of lawyers, Kim & Chang was also second to none.
According to the Ministry of Justice, 1,020 lawyers licensed in Korea worked for Kim & Chang as of July, followed by 565 at Lee & Ko, 519 at Shin & Kim, 497 at Bae, Kim & Lee and 433 at Yulchon.
Kim & Chang was the only South Korean law firm in 2024 to be featured among the world’s Top 100 in a survey published by The American Lawyer and Law.com International.
Observers expect that the outfit will maintain its dominant position for the foreseeable future.
“As a perennial leader, Kim & Chang enjoys a premium. Corporate clients with deep pockets tend to select the best law firm available regardless of cost,” Sungkyunkwan University former law school professor Choi June-seon told UPI.
“Kim & Chang has a recruiting team that picks the cream of the crop. Its reward system, based on intense internal competition, is also notable. Its dominance is unlikely to fade within five years. And I expect it to continue even for a decade,” he said.
Economic commentator Kim Kyeong-joon, formerly vice chairman at Deloitte Consulting Korea, said that Kim & Chang has savored a first-mover advantage. Named after two founders, Kim Young-moo and Chang Soo-kil, it was established in 1973.
“As one of the earliest law firms in South Korea, Kim & Chang has stood out by meeting the mounting demand from corporate clients at a time when the country was undergoing rapid economic growth,” Kim said in a phone interview.
“In addition to its long history, the firm’s strength lies in its diversity across practice areas and industries, including M&A consulting, finance, antitrust, tax and litigation in both Korean and foreign languages,” he said.
Kim & Chang said the full-service law firm employs up to 2,100 professionals, including accountants, tax specialists and patent attorneys, on top of Korean and international lawyers.
Yonhap Infomax, a subsidiary of Yonhap News Agency, reported that Kim & Chang advised on 168 M&A deals last year worth $25.95 billion, capturing a 35.88% market share and remaining atop the list for 12 consecutive years.
Shin & Kim ranked No. 2 with 19.8%, chased by Lee & Ko with 12.6%, and Yulchon with 10.31%.
During the first half of this year, Kim & Chang again topped the podium with a market share of 28.27%.
Globally renowned law firms have tapped into the South Korean market since the early 2010s, but they have failed to make their presence felt. Some even exited the country after failing to achieve significant results.
“From the perspective of global law firms, it would be very difficult to build networks within Korea’s tightly-knit legal community. That’s why they have languished,” Seoul-based consultancy Leaders Index CEO Park Ju-gun said. “The situation is not likely to change in the near future.”
Asked which company might emerge as a serious contender to Kim & Chang, Park named Yulchon, which has chalked up fast growth over the past several years. Even so, he projected that it would take quite a lot of time.
Founded in 1997 as a latecomer, Yulchon has risen to the top ranks on the back of its expertise in tax, antitrust, and regulatory affairs. Other major players were mostly launched in the 1970s and 1980s.