[Column] 'Legal Tech Innovation' Depends on the Ministry of Justice's Decision Speed

Without a Decision, Nothing Can Be Done but 'Waiting'
Even If 'Disciplinary Action Is Justified', Administrative Litigation Remains

The disciplinary committee for lawyers held by the Ministry of Justice on the 6th ended without a conclusion. It was a session for the Ministry of Justice to determine whether the disciplinary actions taken by the bar association against lawyers registered on the legal service platform ‘Lotok’ were lawful. A total of 123 lawyers who joined and operated on Lotok and were disciplined by the Korean Bar Association submitted objections to the Ministry of Justice at the end of last year. According to Ministry of Justice regulations, a decision must be made within three months of receiving an objection. However, the Ministry of Justice cited a supplementary clause allowing a three-month extension “if there are unavoidable reasons” and only conducted internal deliberations until June. Even after holding two disciplinary committees in July and September, no conclusion was reached.

Eom Bo-woon, Director of Law&Company (right), is expressing his position before attending the second review of the Ministry of Justice's Lawyer Disciplinary Committee regarding the discipline of lawyers registered with 'Lotoc' at the Ministry of Justice in the Government Gwacheon Complex on the morning of the 6th.
[Photo by Yonhap News]

Lotok has already been reported for violations such as the Attorney-at-Law Act and the Personal Information Protection Act, but the prosecution decided not to indict. Minister of Justice Han Dong-hoon also stated at the National Assembly in July, “(With the prosecution’s non-indictment) the issue of Lotok’s violation of the Attorney-at-Law Act is already settled.” He added, “What remains problematic is the disciplinary action according to the bar association’s advertising regulations. In a way, this is the final stage,” emphasizing, “There is absolutely no intention to delay the decision unnecessarily. I promise to make a transparent and fair decision.” The chairperson of the disciplinary committee is the Minister of Justice. To enhance fairness in deliberations, the chairperson does not participate in the deliberations nor change the conclusion. Even after Minister Han’s remarks, the disciplinary committee has postponed the decision, citing the need for careful and sufficient discussion.

Legal tech industry insiders say, “Our hearts are burning black,” and “At this rate, we will wither away.” As the prolonged indecision continues, the number of Lotok’s lawyer members, which was once about 4,000, has dropped to the 1,700 range. Lotok conducted a large-scale restructuring earlier this year, cutting its staff by half and putting its headquarters office up for sale. Investments have also stopped. The title of ‘pre-unicorn’ awarded by the Ministry of SMEs and Startups has become meaningless.

What the legal tech industry most desires is the resolution of uncertainty. If the bar association’s disciplinary action is canceled, lawyers can freely use Lotok again; conversely, if the disciplinary action is upheld, they can consider additional responses such as administrative lawsuits. The ride-sharing platform ‘Tada’ received a Supreme Court acquittal four years after being indicted. After four years of legal battles, the company, service, and customers all disappeared. If the disciplinary committee delays the decision and only wastes time, new businesses, where timing is crucial, may never blossom, and opportunities to change business models will be lost.