US trade deal paves way for Korean liberalisation

The US and South Korean governments have brokered a landmark agreement providing a timetable for liberalisation of the South East Asian nation's legal market that could see US firms on the ground by 2009.

The free trade agreement (FTA), struck yesterday (2 April), maps out a three-stage process for opening up the country's legal market­, as well as a number of other sectors.

Although the wording of the agreement has not yet been released, it is understood that the FTA will come into effect in 2009, with phased liberalisation taking place over a five-year period.

Phase one of the agreement will allow US firms to establish offices in the country practising foreign law. Phase two will enable US practices to team up with local firms and split earnings, while the final stage will enable them to hire local lawyers.

It is understood that the Korean authorities plan to follow a Japanese-style model over foreign firms practising domestic law, albeit with a quicker timeframe.

The deal follows the publication of the draft Foreign Legal Services Bill last November, which critics have labelled too restrictive.

The European Union (EU) is due to start negotiations on its own FTA with South Korea next month. While the US began negotiations last June, the Law Society has expressed its confidence that the EU discussions will come to a swift conclusion.

Law Society international head Alison Hook told Legal Week: "On the information that we have so far, the FTA deal appears to be better than the draft [Foreign] Legal Services Bill. There is a relatively quick pathway through to employment and partnership and that is what firms are really looking for."