[Exclusive] KBA Launches Six-Month Suspension for "Habitual" 72-Hour Clause That Harmed Clients

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The Korean Bar Association (KBA) has initiated disciplinary proceedings to impose a six-month suspension on the representative attorney of Law Firm A, citing the disruption of client engagement order due to unfair contract terms and refusal to issue refunds.

This attorney included a so-called "72-hour clause" in contracts, stipulating that attorney fees would not be refunded if more than 72 hours had passed since the case was accepted. When clients requested refunds, instead of responding immediately, the firm reportedly formed an internal "refund defense team" to redirect calls or delay communication. After 72 hours elapsed, the firm would notify clients that refunds were not possible, citing the contract. There have been numerous complaints that the firm collected fees without even commencing work on the case.

It has been confirmed that around 100 petitions have been filed with the KBA. Some clients sought to withdraw their cases simply due to a change of mind, but even partial refunds or reasonable settlements were refused. As a result, some clients reported having to find another law firm to refile their lawsuits.

Traditionally, the legal industry regarded attorney fee refunds as a civil matter, and there was an unwritten rule that the association would not intervene directly. This was because some clients would request refunds simply because they were dissatisfied with the outcome of their cases. However, in this instance, the KBA deemed the repeated petitions and serious ethical violations significant enough to warrant an exceptional disciplinary process. A KBA official explained, "We viewed this as a case that needed to be addressed at the association level in order to restore a healthy order in client engagement."

If the attorney objects to the KBA’s disciplinary action, the case will be referred to the Ministry of Justice’s Attorney Disciplinary Committee. The Ministry of Justice may accept the appeal and modify or revoke the disciplinary measure. If the appeal is dismissed, the attorney may file an administrative lawsuit.

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