[BizHanKook] In the South Korean legal market, law firms around the top 10—previously considered the "Maginot Line" for large firms—have begun a period of strategic alliances and mergers to ensure their survival. Following the official merger push between litigation powerhouses Barun Law and Dongin, Daeryook Aju and Lin are also holding a merger signing ceremony at 2 p.m. on the 9th to formally execute their contract.
The consensus in the legal community is that these mergers signal a "tectonic shift" in the market. Large firms with revenues ranking between 8th and 15th are joining forces as a "necessary choice for survival." Experts explain that, in particular, these firms are merging to combine complementary strengths, aiming to secure a spot in the top 10 to better compete for lucrative corporate cases.
Lin, Strong in "Corporate Advisory," and Daeryook Aju, a "Traditional Litigation" Powerhouse, Hold Signing Ceremony Today
According to the legal industry, Daeryook Aju and Lin will hold their merger ceremony today and complete the merger registration shortly thereafter. The name of the integrated entity is currently being reviewed as “D&L,” which was the grand prize winner of a public contest. The two firms have been pursuing the merger since signing a Memorandum of Understanding (MOU) on April 29.
Based on VAT filings from the National Tax Service last year, Daeryook Aju’s revenue was 102.7 billion won and Lin’s was 41 billion won; combined, they would reach 143.7 billion won, vaulting them to 8th place in terms of revenue. With 384 lawyers, the firm would surpass Hwawoo, positioning them as the 6th largest firm.
Above all, the merger between Daeryook Aju and Lin is expected to shake up the mid-tier market, an area where firms are currently "concentrating" their efforts, particularly in M&A legal advisory. Regarding completed M&A legal advisory transactions, six major firms—Kim & Chang, Shin & Kim, Yulchon, Bae, Kim & Lee (BKL), Hwawoo, and Jipyong—accounted for 74.8657 trillion won (88.6%) and 382 cases (69.0%) through September this year. In that same period, Lin recorded 930.4 billion won (11th) and Daeryook Aju recorded 399 billion won (17th). Combined, the two firms would reach 1.3295 trillion won, securing 8th place as a powerhouse in the mid-tier market.
A managing partner at a large law firm explained, “The biggest concern in our executive meetings lately is how to grow our scale to remain the preferred choice for companies. The combination of Daeryook Aju, known for its strength in traditional litigation, and Lin, which has rapidly grown its business through M&A, is a move that complements their mutual weaknesses. We are watching closely because if they successfully integrate, they could change the market landscape.”
Barun and Dongin Also Pushing for a Merger Aiming for "Top 7" Status
Barun Law and Dongin also signed an MOU in September and are currently working toward integration. If the plan succeeds, based on 2025 combined revenue, they would emerge as a firm with 187.7 billion won in revenue and 553 lawyers, ranking 7th in both revenue and size. The gap between them and the “Big 5” firm Yulchon (574 lawyers) would narrow to just 40–50 people. This has the potential to be the largest merger of domestic law firms in history in terms of scale.
The two firms are considered to have relatively similar profiles. Barun was founded by former judges and, based on its competitive edge in litigation, expanded into corporate advisory, M&A, intellectual property (IP), and human resources/labor affairs. Dongin grew by focusing on former prosecutors and has recently been recruiting more personnel with judicial experience to expand its litigation and corporate advisory divisions.
The backdrop to these mid-sized firms with revenue in the 100 billion won range joining forces is clearly a "structure where only the big survive." Until now, firms outside the Big 4 or Big 6 have managed to survive by leveraging specialized areas like criminal law, litigation, or M&A. However, as the corporate preference for "major law firm brands" has become deeply entrenched, these firms are opting for mergers as a last-resort strategy to stay afloat.
A managing partner at a boutique law firm explained, “Even if talented lawyers from a small or medium-sized firm present an excellent strategy to a corporation, if the owner or CEO says, ‘Isn't it safer to go with Kim & Chang, Bae, Kim & Lee, or Shin & Kim?’, then the large firms—which didn't even put in the effort to present—end up winning the contract at a higher fee. That is the case in the majority of instances today. Because of this, everyone is desperate to increase their scale to win lucrative corporate cases, and my firm has also received multiple merger offers.”
A partner at one of the "Big 4" law firms hinted, “The key factors corporations demand and check before hiring a firm are how many former government officials from institutions like the Korea Fair Trade Commission or the Financial Services Commission they have, and whether these individuals can effectively deliver messages to relevant ministries before legal action is taken. You shouldn't just look at the number of lawyers when evaluating a law firm merger; you should also look at the increase in the number of specialized consultants affiliated with the firm.”