“Designate Problematic Law Firms, Raise Fine Cap from 30 Million to 1 Billion Won” Seoul Bar Association Submits Opinion to Ministry of Justice

Seoul Bar Association: "Violations of Attorney Advertising Regulations on the Rise"
Submits Opinion Calling for Designation of Problematic Law Firms and Higher Disciplinary Fines

The Seoul Bar Association (President Cho Soonyeol) announced on August 14 that it had submitted an official opinion to the Ministry of Justice, requesting institutional improvements including amendments to the Attorney-at-Law Act regarding "network-type law firms." Network-type law firms refer to legal entities that operate multiple branch offices nationwide and acquire cases through advertising.

The Seoul Bar Association reported cases in which network-type law firms cut off communication with clients after accepting a case; refused to return retainers even when no progress was made after signing a contract; advertised as if connections with former officials would influence case outcomes; and failed to ensure continuity between the stages of consultation, case acceptance, document preparation, and pleading. As a result, disciplinary actions at the bar association level have increased. According to the Korean Bar Association, there were 169 disciplinary cases in 2022, 154 cases in 2023, and 206 cases in 2024. In particular, violations of attorney advertising regulations accounted for 101 cases in 2023 and 2024 combined.

The Seoul Bar Association expressed the opinion that a system for suspending law firm operations should be introduced, and that a "designation system for law firms to be cautious of when retaining legal services" should be implemented. It also argued that the upper limit for attorney disciplinary fines should be significantly raised. The current Attorney-at-Law Act sets the maximum fine at "up to 30 million won," which is considered ineffective as a sanction given law firms' revenues. The Seoul Bar Association believes the cap for fines against law firms should be raised substantially, for example, to "up to 1 billion won" or "up to 10% of annual revenue."

The Seoul Bar Association stated, "We will do our utmost to foster a healthy legal market order," adding, "Based on the results of our association's survey, we plan to communicate closely with the Ministry of Justice and other relevant agencies."