[Big Tech, Big Change①] "Lease Consultation for 20,000 Won" 'Naver Lawyers' Lower Legal Bar

Big Tech Changing the World
Naver and Kakao, which started as internet portal services, are expanding infinitely into mobility, finance, e-commerce, content, and more. This so-called 'catfish effect' leads to conflicts not only with traditional industries but also beyond changes in conventional sectors. As the distinction between traditional industries and ICT industries becomes blurred and barriers between industries disappear, big tech represented by Naver and Kakao is shaking the framework of South Korea's industrial structure. Asia Economy examines the major industrial changes triggered by big tech in mobility, finance, e-commerce, and more.

[Asia Economy Reporter Bu Aeri] About 200 lawyers belong to 'Naver Knowledge iN eXpert,' introduced by Naver to lower the barrier to legal services. Although it does not reach the scale of Korea's largest law firms such as Kim & Chang (866 lawyers), Bae, Kim & Lee (534 lawyers), or Yulchon (334 lawyers), it has secured a considerable number of lawyers. The traditional legal market, where people visited law firms or sought out known lawyers when legal issues arose, is rapidly entering the 'legal tech' era, which combines law and ICT. Legal tech is expected to shift legal services from a supplier-centered model to a consumer-centered one, expanding the contact points between demand and supply and reducing service costs.

3,630 Legal Consultations in Just 3 Months Since Service Launch

According to Naver on the 24th, the number of legal consultations conducted on the online expert consultation platform 'Knowledge iN eXpert' reached 3,630 as of June. This achievement was made within just three months of launch. Legal consultations are services where users access Naver Knowledge iN eXpert via mobile, select a lawyer, pay a fee, and receive consultations via chat or phone for a set period. The service is well-received due to its easy accessibility and affordable price.

Legal services have traditionally been a difficult area for the general public. Lawyers have felt distant, and the process of finding a lawyer, researching prices, and scheduling consultations was not easy. Naturally, the barrier to the legal market was high. Naver Knowledge iN eXpert aims to lower this very barrier.

Lawyer Jeong Seong-yeop, active on Knowledge iN eXpert, sometimes handles up to 25 consultations a day. Many inquiries are about minor legal knowledge, but sensitive topics such as voice phishing and sexual crimes, which are difficult to discuss face-to-face, are also frequently addressed. Jeong said, "A grandmother who received consultation on rental contract issues for 20,000 won once came to my office to thank me personally," adding, "The advantage is that people lacking legal knowledge or unable to receive legal protection due to economic reasons can easily and freely meet lawyers anytime."

In the 'legal consultation' service of eXpert, 200 specialized lawyers in areas such as divorce, criminal, and civil law provide real-time answers. Consultation fees are also relatively low. Although fees vary by lawyer, the average is about 10,000 to 30,000 won per 10 minutes. In contrast, offline consultations cost about 100,000 won per 30 minutes. Large law firms charge even more, ranging from several hundred thousand to millions of won. With Naver's platform technology, lawyer consultations have become possible in a 'low-cost, high-efficiency' structure.

Various Topics Including Tax and Real Estate

Naver Knowledge iN eXpert provides consultations in 59 fields including tax, real estate, and fitness, with 2,900 experts offering advice. Naver itself functions as a massive consulting platform. The cumulative number of consultations has reached 175,000. The weekly average consultations in July were 9,000, marking a 530% growth compared to January (1,500). The spread of untact (non-face-to-face) culture due to the COVID-19 pandemic has further expanded the scope. Some experts now earn a monthly net income of up to 9 million won.

The tax field is as well-received as legal consultations. Issues related to complex and cumbersome taxes such as comprehensive income tax, capital gains tax, local taxes, and corporate tax can be easily discussed. Like legal services, tax payment issues previously required visiting tax accountant offices, spending significant time and money, but now solutions can be found by paying consultation fees ranging from 1,000 to 3,000 won. In April alone, ahead of the comprehensive income tax filing season, 15,324 consultations were recorded.

"Ensuring Professionalism and Accuracy Is a Challenge"

As Naver breaks down the 'fortress' of professional services such as legal services, opposition forces have emerged. On the 22nd, the Korea Bar Association filed a complaint with the Seoul Central District Prosecutors' Office against Naver CEO Han Seong-sook and eXpert managers for violating the Attorney-at-Law Act. The issue concerns the 5.5% payment agency fee that eXpert lawyers pay to Naver from consultation fees, which may violate the Attorney-at-Law Act. Article 34 of the Attorney-at-Law Act prohibits providing money, entertainment, or other benefits in exchange for introducing or recommending lawyers.

Naver maintains that there is no violation of the Attorney-at-Law Act. Naver states that it does not receive brokerage fees for lawyer engagements but only deducts a 'payment agency fee.' This fee is a cost incurred when using electronic payment services, charged by the payment gateway (PG) company. Naver explained, "We pay the entire payment agency fee to the PG company."

Experts say that instead of outright opposing big tech companies' entry into professional consultation fields such as legal services, it is time for social discussions including institutional improvements. Professor Choi Kyung-jin of Gachon University Law Department said, "It is meaningful that ICT technology has entered and acted as a 'mediator,' lowering the barrier to legal services," adding, "However, since users could be harmed, the quality of professional service areas must guarantee 'accuracy' and 'professionalism.' Discussions on how to resolve this are necessary."