'Network Law Firm' YK Enters Top 10 After 12 Years Since Establishment

Bareun Surpasses 100 Billion Won in Sales for the First Time Since Its Establishment

Analyzing the growth rates of Korea's top 12 major law firms in 2023, Barun, which received a huge success fee from a wage-related lawsuit, joined the '100 Billion Won Club,' while seven large law firms including Daeryuk Aju recorded single-digit growth rates due to the impact of the economic downturn. Law firm YK, which promotes itself as a network law firm, experienced rapid growth in just 12 years since its establishment.

Barun surpassed 100 billion won in revenue for the first time since its founding, growing 22.7% compared to 2022. It is reported that Barun received a success fee in the 100 billion won range from the Hyundai Heavy Industries wage lawsuit, which concluded after 10 years last year. Contributions to the Fair Trade Commission and Qualcomm's trillion-won lawsuit that ended in April last year, as well as active roles in claims lawsuits such as the termination payment for the Masan Robot Land implementation agreement, also had an impact. Lin, which achieved nearly 30 billion won in revenue in seven years since its establishment, cited △competitive fee proposals △building work efficiency such as digital nomads △establishing real-time communication channels as the secrets to its growth. Dongin, celebrating its 20th anniversary this year, accelerated revenue growth by operating about 70 dedicated teams including the Serious Accident Team and Real Estate Crisis Response Team.

Daeryuk Aju attributed its success to its activities in serious accident consulting and new business areas. Yulchon cited serious accidents and litigation work, while Sejong mentioned specialized teams led by serious accidents and virtual assets as growth drivers. Jipyung grew by 5.2%, Roel by 4%, and Taepyungyang by 2.5%.

Based solely on law firm revenue, Kwangjang recorded the highest revenue (372.38 billion won) excluding Kim & Chang, but experienced a 1% decline compared to 2022. It is analyzed that the firm's focus on advisory areas such as mergers and acquisitions was disadvantageous due to the downturn in the IB industry. Hwawoo also recorded a low growth rate of 1%.

When considering total revenue including overseas offices, patent firms, and tax firms, Daeryuk Aju recorded a high growth rate of 13.8%, compared to 9.9% based solely on law firm revenue. Applying the same criteria, Yulchon followed with 8%, Sejong 7.4%, Jipyung 5%, Hwawoo 2.2%, and Taepyungyang 1.4%.

A YK official explained, “The secret to growth is building a profit structure in areas such as criminal law through an aggressive scouting strategy.” YK introduced the so-called ‘network law firm’ system for the first time, operating offices nationwide in Daejeon, Gwangju, Busan, etc., and conducting large-scale online advertising to attract legal consumers nationwide. Subsequently, latecomers with similar models such as Roel and Daeryun also appeared. However, many challenges remain. The issue of ‘quality control’ regarding whether uniform services are provided across nationwide offices is continuously raised. Additionally, YK has received both expectations and criticism by recruiting a large number of former police officers, including 76 retired police officers from 2017 to June 2023.

Sujeong Hong & Hanju Jo, Legal Times Reporters

※This article is based on content supplied by Law Times.

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