'Ok' Sounding US Lawyer Salaries
Star Lawyers Earn About 3.3 Million KRW Per Hour
Competition for Recruitment to Law Firms Intensifies
The labor costs of American lawyers are rising sharply, intensifying competition among law firms to recruit star attorneys.
On the 5th (local time), The Wall Street Journal (WSJ) reported that the hourly billing rates of U.S. lawyers increased by about 9% in the first half of this year. According to quarterly survey data from Wells Fargo's legal specialist group, the increase was around 8.3% in the same period last year, but this year showed a steeper rise. This figure is more than double the past average annual fee increase rate of about 4%.
Lawyers' wages in the U.S. have recently risen significantly, reportedly reaching levels comparable to those in investment banking (IB) or private equity industries. Especially in certain specialized areas such as mergers, tax, and regulation, the number of available law firms is very limited, driving prices even higher. From a corporate perspective, when handling critical matters like mergers, there is an expectation that the cost will be worth it, leading to reliance on large law firms. Some star lawyers charge hourly rates of $2,500 (approximately 3.3 million KRW) or more.
Alan, Chief Legal Officer at global commercial real estate services firm JLL, explained, "Top-tier law firms are spending huge amounts to recruit the best star lawyers, and this is driving the market," adding, "No one can say this is 'wrong.' Ultimately, clients have become part of this issue."
Additionally, according to a survey of top law firms by Citi Global, law firm revenue growth in the first half of this year was 11.4%, surpassing the increase in costs. In particular, star lawyers' annual salaries range from $15 million (about 20 billion KRW) to $20 million (about 27 billion KRW). Junior salaries at large law firms start at $250,000 (about 330 million KRW), a 30% increase over five years.
In this situation, companies are taking measures such as conducting competitive bidding to reduce legal costs and handling tasks within their in-house legal departments. Large corporations are also changing the practice of using only top-tier law firms, sometimes shifting certain legal work from large firms to smaller ones.
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