[Invest&Law] MZ Lawyers Who Rejected Large Law Firms Move to Corporations

Prioritizing Work-Life Balance and Experience Over Money
Rush to Change Jobs to Corporate Legal Teams
Major Law Firms Used for Building Credentials

The rush of junior lawyers with 3 to 7 years of experience moving from large law firms to corporate legal teams is accelerating. A reversal phenomenon is occurring where large corporations, known for better work-life balance (WLB) compared to the ‘king’ salary priority at large law firms, are gaining popularity among elite lawyers prioritizing their careers. Large law firms, having lost elite talent to corporations, are once again competing to recruit experienced lawyers from rival firms, repeating the corporate-driven talent war in law firms.

According to the legal community on the 24th, several lawyers from Kim & Chang Law Office and Bae, Kim & Lee LLC recently joined Samsung Electronics’ legal team at once. The reason for the increasing trend of young elite lawyers, who were once the top priority for recruitment by large law firms, moving to corporations is ‘work-life balance.’ Rather than becoming a partner lawyer at a law firm and facing pressure to secure clients, they prefer corporate lawyers who can work in a relatively comfortable environment and gain diverse experiences beyond legal work.

"These days, finding junior lawyers who won’t leave is like ‘catching stars in the sky.’"

At a large law firm ranked within the top 10 domestically, the shortage of junior lawyers has recently become a hot topic. A partner lawyer at this firm said, "There is even some self-deprecation that the know-how we painstakingly teach is just used as a stepping stone for moving to other law firms or in-house counsel positions."

One of the biggest reasons large law firms worry about the outflow of junior lawyers is the sustainability of the firm. Even if mid-level junior partners handle urgent litigation support, if the ‘inverted pyramid’ structure with many seniors but few newcomers continues, the firm will inevitably fall behind in long-term competition.

◆ For juniors, corporate lawyer is the top choice = Originally, large law firms were the number one employment preference for young lawyers. However, as more MZ generation (Millennials + Generation Z) lawyers prioritize work-life balance over firm size or salary, preferences for law firms have changed. A lawyer at a large law firm said, "Large firms demand significant results from associate lawyers," adding, "With the rise of co-parenting culture, young lawyers feel burdened by working late hours."

The fact that it has become harder to get promoted due to more structured hierarchies at large law firms also influences job changes. On the other hand, corporate lawyers are often evaluated as having relatively lighter workloads and decent treatment compared to law firms. They can realize a 9-to-6 schedule like regular office workers, and workload can be reduced depending on proficiency in company legal advice and contract review. A lawyer who moved from a large law firm to a corporate legal team said, "Since moving to a corporate lawyer role, I have much more free time and have been writing my (doctoral) thesis in between."

◆"Large law firm experience is just for building credentials"= As corporate lawyer popularity soars, moving to corporations is becoming a ‘needle’s eye.’ Because of this, among lawyers in their 20s and 30s, there is even talk that gaining experience at large law firms or as judicial research fellows (law clerks) is a credential for becoming a corporate lawyer. A former chief judge and head lawyer at a Seocho-dong law firm said, "If talented legal resources concentrate in large corporations and large law firms, it will eventually become difficult for courts and prosecutors to secure talent."

With frequent job changes among young lawyers, law firm recruiting is shifting from a strategy of preemptively hiring excellent new lawyers to a ‘stove league (period of contract renewal or trade)’ competition focusing on recruiting experienced lawyers with expertise in specific practice areas such as construction real estate and capital markets.

A partner lawyer at a large law firm said, "There is even talk that the main task of lawyers in charge of recruitment at law firms is shifting from ‘selecting’ excellent talent to ‘retaining’ them."

Reporter Lee Soon-gyu, The Law Times

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