[비즈한국] "A market where only large law firms survive." This is the phrase that best summarizes recent trends in the legal industry. While Kim & Chang, Korea’s largest law firm, is estimated to have surpassed 1.5 trillion won in annual revenue for the first time last year, Lee & Ko became the first firm other than Kim & Chang to break the 400 billion won revenue mark.
According to the legal sector and the National Tax Service, the combined revenue of major firms including Lee & Ko, Bae, Kim & Lee (BKL), Yulchon, Shin & Kim, and Hwawoo, based on value-added tax filings, reached 1.7936 trillion won, a 12% increase from the previous year. If the scope is expanded to include nine major domestic law firms, such as Jipyong, Barun, Daeryook Aju, and Dongin, the total reaches 2.1918 trillion won. This marks the first time the revenue of these nine major firms, excluding Kim & Chang, has exceeded 2 trillion won. They have shown consistent growth, following 2021 (1.7776 trillion won), 2022 (1.8916 trillion won), and 2023 (1.9842 trillion won).
Large Law Firms Maintain Growth by Sweeping Up Corporate Cases
The upward trend in the performance of large law firms is driven primarily by "corporate case retention." In particular, experts note that the number of corporate mergers and acquisitions (M&A) handled has been the deciding factor in their financial success.
Last year, Lee & Ko successfully closed the 6.45 trillion won merger between SK Innovation and SK E&S, and also handled Air Incheon’s acquisition of Asiana Airlines' cargo business. Bae, Kim & Lee (BKL) successfully completed Affinity Equity Partners' acquisition of SK Rent-a-Car and Lotte Rental089860. Shin & Kim drove strong results by successfully advising on M&As in 2024, including Hankook Tire & Technology161390’s acquisition of Hanon Systems018880, Genesis PE’s sale of KJ Environment, and the establishment of Alibaba’s joint venture.
The series of corporate management disputes last year also provided opportunities for large law firms. In the Korea Zinc management dispute, the legal team for MBK Partners and Young Poong was BKL, while the team for Young Poong was Shin & Kim. Additionally, Hwawoo made its mark by serving as counsel in cases such as the injunction against the issuance of new shares by Hanmi Science. They also achieved positive results in management disputes, including the stock transfer lawsuit related to Hahn & Company’s acquisition of Namyang Dairy Products.
Large firms also handled high-profile cases involving conglomerate owners, which boosted their performance. Yulchon participated as part of the legal team for Chairman Chey Tae-won of SK Group in his divorce appeal against Art Center Nabi Director Roh Soh-yeong, and also served on the legal team for Chairman Koo Kwang-mo of LG Group in his inheritance dispute, playing a significant role in high-stakes litigation involving corporate leaders last year.
A partner at a large law firm explained, "It is a thing of the past for large firms to handle only the criminal and civil cases of corporate owners. From minor management decisions to major issues like company acquisitions, we often start with advisory services that lead to full case representation, which seems to be why the revenue of large law firms continues to rise."
Median Annual Income for Lawyers is 50 Million Won, the Lowest Among Professionals
On the other hand, small and mid-sized law firms and solo practitioners are struggling to survive. As large firms scoop up most of the "high-value corporate cases," competition has become increasingly fierce for smaller firms that rely on individual or small-business cases.
A representative of a boutique firm and former prosecutor explained, "The competition is so intense that we often have to visit companies and give presentations alongside three or four large law firms just to land a case worth 300 to 400 million won. Even after such efforts, the 'big name' of a large law firm often wins the case, making it increasingly difficult for smaller firms to survive."
It is said that for solo practitioners without a "safety net," the structure is becoming even more punishing. A lawyer who graduated from law school and opened their own practice lamented, "Not to mention corporate cases, there are almost no requests for small business cases. Even startups with some scale or vision entrust their legal affairs to the dedicated teams at large law firms, so many solo practitioners are left scraping by on 5 or 10 million won criminal or civil cases."
In fact, according to the 'Status of Business Income by Profession (2014-2022)' released by the National Tax Service, the average income of lawyers was 100 million won, but the median income was only 30 million won—the lowest among all licensed professionals. Even excluding lawyers with zero or negative income, the average income was 130 million won, while the median remained at just 50 million won. This means the lawyer at the 50th percentile out of 100 earns only about 4 million won per month.
An official from the Korean Bar Association expressed concern: "Large law firms are continuing to grow in their own league, but with more than 1,000 new lawyers entering the market every year and little growth in the volume of low-fee cases, the trend of declining incomes for solo practitioners is likely to continue."