Korean Bar Association and Others Counter Ministry of Justice on "LegalTalk Legality"... "Legal Platforms Undermine Fairness in Legal Market"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The Korean Bar Association (KBA), which has recently been in conflict with the advertising-based legal platform service 'Lotok,' announced that it will continue to raise issues, maintaining its opposition stance that "new legal platforms undermine market fairness," together with local bar associations nationwide.

On the 21st, the KBA and 14 local bar associations issued a statement expressing concern that "judicial justice in the Republic of Korea is becoming subordinated to capital," and emphasized that "due to the rapid expansion of indiscriminate online platform-based businesses, we will actively continue to raise issues to abolish the harmful effects of platform businesses and realize fairness in platform services, in solidarity with other professional interest groups marginalized and subordinated to capital in the market."

The KBA and others explained that new legal platform services like Lotok allow consumers to communicate only through the platform operators and advertise lawyers as if they were affiliated members, which is no different from the "onlineization of sham law firms," arguing that "they are effectively nullifying the Attorney-at-Law Act, a statutory law, and operating with virtually no restrictions."

They added, "There is a strong possibility that the top legal platform operator will monopolize the domestic legal market, and the operator may maximize investment returns through listing at a certain point, with the business potentially falling into the hands of foreign large platform companies or domestic conglomerate capital." Citing the example of a major domestic precedent search service company that was acquired by a Canadian multinational media group in 2012, they stated, "Lawyers cannot fight for human rights and justice against large corporations or huge capital. Lawyers who fight against capital are expelled from the platform and cannot survive in the market."

The KBA and others expressed serious concern that "legal platform operators, who pursue profit as the highest good based on public interest such as protecting citizens' fundamental rights and realizing judicial justice, and the huge capital invested in them, are encroaching on and commercializing the legal market and further subordinating legal professionals." They clarified, "The revision of lawyer advertising regulations and the resolution to amend the Code of Ethics for Lawyers were made in recognition of the gravity and seriousness of this issue, as a decision to protect the basic ideals of the legal market and judiciary according to laws and procedures."

They also urged lawyers, saying, "If innovation is an inevitable trend of the times, paradoxically, reflection and consideration of the world that innovation will bring must be accompanied." They called for wisdom to be gathered together with the KBA, the National Assembly, government ministries, and related organizations.

The background for the KBA and 14 local bar associations issuing the joint statement appears to be the recent stance of the Ministry of Justice recognizing Lotok as a legitimate service.

On the 15th, Minister of Justice Park Beom-gye stated at a meeting with startup officials that "Lotok does not violate the Attorney-at-Law Act."

The Ministry of Justice holds the primary decision-making authority in the conflict between the KBA and Lotok. If the Minister of Justice recognizes that the KBA's general meeting resolution violates laws or bylaws, it can be canceled. In fact, the KBA, which revised the lawyer advertising regulations to effectively ban legal platforms like Lotok, is inevitably under pressure.

Meanwhile, Lotok recently reported the KBA to the Fair Trade Commission for violations of the Fair Trade Act and the Act on Labeling and Advertising, and also filed a constitutional complaint against the regulation revision. It is reported that the KBA is internally considering criminal charges against Lotok.

This content was produced with the assistance of AI translation services.