According to the FTA agreements with the U.S., there are three
stages to open the Korean legal market. 12 The first stage concerns
provisions about FLCs such as their registration and consultation
privileges:
No later than the date this Agreement enters into force, Korea
shall allow, subject to certain requirements consistent with this
Agreement, U.S. law firms to establish representative offices
(Foreign Legal Consultant offices or FLC offices) in Korea, and
attorneys licensed in the United States to provide legal advisory
services regarding the laws of the jurisdiction in which they are
licensed and public international law as foreign legal consultants
in Korea.13
The second stage, estimated to take about two years after the date
the KORUS FTA enters into force, allows foreign law firms and Korean
law firms to collaborate in cases where domestic and foreign legal issues
are mixed and share derived profits.14 The third stage, estimated to take
about five years, will allow foreign law firms to enter into joint ventures
with Korean law firms and employ Korean professionals.15
The first stage of the FLC Act benefits primarily foreign
individuals. The second stage benefits both Korean and foreign law firms.
The third stage promises the most benefit to Korea as it will allow for the
establishment of international law firms offering convenient, cost-effective
one-stop legal services meeting local demand with global experience and
resources.16 Korean and U.S. clients will most likely benefit from the
establishment of international law firms through reduced cost and
increased convenience of retaining experienced U.S. lawyers in Korea.17
The availability of U.S. based global law firms in Korea may also provide
U.S. companies a level of comfort and security sufficient to expand
business relationships consistent with Korea’s longstanding desire to
increase foreign investment activity.18 Competition in the legal services