Law Firms Launching African Market Expansion

Published 22 May.2024 14:11(KST)

US-China Conflict and Carbon Neutrality:
Focus on Major Resource Supply Chains
Large Law Firms' Swift Response

The law firm industry is experiencing a wave of interest in the "African continent." As the geopolitical shift away from China and the carbon neutrality trend continue, domestic companies are turning their attention to resource-rich Africa, prompting major law firms to swiftly prepare countermeasures. In particular, depending on the results of the Korea-Africa Summit scheduled for April 4-5 next month, a huge and new market is expected to open for domestic law firms.

[Image source=Beomryul Newspaper]

Daeryuk Aju Law Firm (Chief Attorney Lee Gyu-cheol) has upgraded its Africa team, active since 2016, to the Africa Group earlier this year and launched an aggressive approach. In March, they strengthened their capabilities by recruiting Senior Advisor Yoon Seong-hyeok, who oversaw Samsung Electronics' Africa operations. Additionally, in November last year, they signed a business agreement with the Korea-Africa Foundation, a legal institution under the Ministry of Foreign Affairs. Daeryuk Aju is also considering opening an office in Africa from a long-term perspective.

Jipyung Law Firm (Chief Attorney Kim Ji-hyung) launched its Africa-Middle East team earlier this year. Centered around Senior Advisor Kim Doo-young, who worked at KOTRA for 32 years, they signed a business agreement with Kenyan law firm G&A in March. On the 21st, they held an investment policy seminar for the East African region.

Jieum Law Firm merged last July with MEA, a law firm specializing in the Middle East and Africa, and Kim Hyun-jong (47, Judicial Research and Training Institute class 39), former MEA representative who has handled cases in the Middle East and Africa for over 14 years, is overseeing overseas operations.

Why are law firms turning to Africa? In addition to a young labor force and rapid economic growth, Africa is emerging as a key hub to diversify supply chains for major resources such as batteries and semiconductors, replacing China amid the US-China trade conflict. Notably, Africa is rich in deposits of key minerals like manganese and cobalt used in electric vehicle manufacturing. According to KOTRA's 2023 report, about 30% of the world's mineral resources are located in sub-Saharan Africa. Approximately 50% of cobalt, a mineral related to lithium-ion batteries, is found in the Democratic Republic of Congo, and 30% of manganese is deposited in South Africa.

Furthermore, expectations surrounding the "2024 Korea-Africa Summit" to be held on April 4-5 in Goyang City, Gyeonggi Province, and Seoul are also influencing this trend. More than 40 heads of state from the 54 African countries are expected to attend, and if policies beneficial to companies are announced, new market opportunities could open up for law firms as well.

Kim Kyung, a foreign attorney at Daeryuk Aju's Africa Group, said, "The African market is attractive, but Korean companies find it difficult to obtain local project information," adding, "We hope that the summit will produce policies that provide practical benefits to companies."