[Invest&Law] Hwang Yungu, Managing Attorney of Dongin Law Firm: "If a Merger Is Possible, Hwa Woo Is Optimal... The Synergy Will Be Clear"

Hwang Yungu, representative of Dongin Law Firm, is being interviewed on the 2nd at Dongin Law Firm in Seocho-gu, Seoul. Photo by Kang Jinhyung

Hwang Yungu, managing representative attorney of Dongin Law Firm (LLC), has effectively extended an invitation to Hwa Woo, stating, "We are always considering large-scale mergers, and when thinking about synergy effects, I believe Hwa Woo is the optimal merger partner." Since its founding in 2004, Dongin has grown to become one of Korea's top 10 law firms, currently employing over 250 attorneys. If Dongin merges with Hwa Woo, which ranks around sixth in terms of revenue, the combined firm is expected to immediately rise to the third or fourth largest law firm in the country.

Since taking office as managing representative in May last year, Hwang has focused on expanding Dongin's scale. He has concentrated not just on increasing the number of attorneys, but on transforming Dongin into a law firm that attracts highly skilled lawyers whom corporations can trust with their cases.

In an interview with our publication at Dongin's office in Seocho-gu, Seoul, on the 2nd, Hwang stated, "In our legal market, Kim & Chang dominates almost half of the market share, and the top five major law firms account for about three-quarters of the total market. Along with discussions about mergers with other large law firms ranked sixth to tenth that are striving to compete with the top five, we are also focusing on merging with or recruiting specialized teams that are recognized for their expertise and generate significant revenue."

He added, "There are definite synergy effects from mergers, and as long as there is demand among mid-tier law firms ranked sixth to tenth to join the ranks of the top five, these discussions will continue. I am considering Hwa Woo as a potential partner and am contemplating discussions with its representative."

Hwang also commented that the rapid revenue growth of so-called "network law firms" through massive advertising is only a temporary phenomenon. He pointed out that there are limitations to attracting clients through advertisements on portal sites.

"The growth of network law firms that use large-scale advertising as a weapon is clear, but I believe there are definite limits to that growth," Hwang said. "I understand that the Korean Bar Association has disciplined several network law firms, and the fundamental reason for these disciplinary actions is excessive advertising and advertisements that could be misleading or exaggerated."

He continued, "If the bar association's disciplinary actions are deemed justified, the severity of future disciplinary measures could increase to the point where law firms may be unable to operate. Dongin will never engage in indiscriminate advertising methods such as pay-per-click ads, which have been used by network law firms to fuel their growth and can cost hundreds of millions of won per month."

Hwang Yungu, CEO of Dongin Law Firm, poses before an interview at Dongin Law Firm in Seocho-gu, Seoul on the 2nd. Photo by Kang Jinhyung

Dongin is well known in the law firm market for its strength in criminal litigation. While the firm was established primarily by former prosecutors, Dongin has aggressively recruited attorneys specializing in criminal law, building a reputation as the go-to firm for criminal cases. However, Dongin has consistently faced criticism for being relatively weak in advisory services compared to its strengths in litigation support during investigations and trials.

Regarding this, Hwang explained, "It is not that we were weak in advisory services; rather, Dongin has traditionally been so strong in litigation that there was little need to attract advisory cases, which is why the proportion of advisory work was lower compared to litigation. Recently, however, many of our attorneys have signed advisory contracts with corporations, leading to a significant increase in advisory cases. We have also reorganized dedicated teams in areas that were previously somewhat weak, such as fair trade, tax, M&A, corporate governance, intellectual property, and environmental energy. As a result, our advisory team attorneys now possess strategic planning capabilities on par with our litigation teams and have established meticulous risk prevention processes."

With the government and ruling party pushing for prosecutorial reforms such as the separation of investigative and indictment powers and the abolition of supplementary investigation rights, Dongin, which specializes in litigation, is also expected to be affected. When asked about countermeasures, Hwang said, "If a separate prosecution office is established, legal review of investigative cases will need to be conducted even before indictment, so the role of attorneys with judicial backgrounds is expected to increase. During periods of institutional transition, law firms may experience some confusion, but I do not believe the fundamental approach to handling criminal cases will change significantly. Dongin will continue to maintain its criminal case handling expertise and provide systematic services."