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Korean law firms vie to capitalize on Ukraine's post-war reconstruction
gettyimagesbank
By Park Jae-hyuk
Experts in Ukrainian laws give legal advice to builders, manufacturers
Competition is heating up among major law firms in Korea to take the lead in the market for legal services offered to Korean companies interested in the post-war reconstruction of Ukraine, according to industry officials, Thursday.
With their diplomatic experts and lawyers having knowledge of Ukrainian laws, Korean law firms have vied to attract domestic construction firms and manufacturers that seek to rebuild the war-torn country’s infrastructure, which is expected to be worth around $900 billion.
Just after the war broke out two years ago, the law firms apparently focused more on giving legal advice for Korean companies in Russia to avoid fallout from international sanctions. However, they shifted their focus to Ukraine last year, as expectations are growing over a ceasefire and more Korean companies have suspended their operations in Russia or left the country.
Yulchon, one of Korea’s largest law firms, hosted a meeting on Jan. 24 with Ukrainian politicians and businesspeople at its head office in Seoul, for Samsung C&T, Hyundai E&C, Daewoo E&C, POSCO E&C and eight other Korean firms interested in reconstruction projects to receive more practical advice on their plans.
The law firm said that the Ukrainian delegation introduced business opportunities in Lviv and the city’s plan to build a smart city and an industrial complex.
Since Russia began its invasion of Ukraine in February 2022, Yulchon has offered seminars for domestic companies to learn how to sign contracts in Ukraine and how to cope with potential legal disputes there. In February last year, the law firm organized a team dealing with legal affairs related to Ukraine’s reconstruction projects.
“Russia and Ukraine are similar in terms of infrastructure, system and laws, and Yulchon has focused on offering legal advice for reconstruction projects in Ukraine and other former Soviet countries,” said Lee Hwa-joon, the team's leader who was admitted to the bar in Russia and has served as a legal adviser for both Russian and Ukrainian embassies in Korea.
“We will support Korean companies that want to enter the Ukrainian market, taking account of the characteristics of domestic firms that considered entering the Russian market,” he said.
Shin & Kim, another major law firm that also established a task force for Ukraine’s reconstruction last February, was the only law firm that participated in the government’s briefing session last November for Korean companies interested in entering the Ukrainian market.
During the session, lawyer Lee Seung-soo of the law firm explained Ukrainian laws related to reconstruction and ways to set up a local subsidiary there. He recommended Korean firms at that time to use Poland as a gateway to Ukraine, as the country could be under martial law for a while.
Ukrainian politicians and businesspeople pose with Yulchon's lawyers and representatives of Korean construction firms during a meeting at the law firm's head office in Seoul, Jan. 24. Courtesy of Yulchon
Former diplomats play key roles
Yoon & Yang tasked former Vice Foreign Minister Choi Jong-moon with leading a task force for Ukraine’s reconstruction, which was established recently on the occasion of the second anniversary of Russia’s invasion. He is known to have built personal networks in Ukraine, thanks to his 40-year diplomatic career.
Kim Han-chil, the director of Yoon & Yang’s Tashkent office, who was admitted to the bar in Russia, will support the new task force. Yoon & Yang lawyer Park Geun-bae, who previously worked for Hanwha Defense, was also sent to the task force. Ukraine asked for Korea’s investments in the defense industry, as well as the infrastructure construction, when President Yoon Suk Yeol visited the country last July.
Lee & Ko also appointed a diplomatic expert last year to lead a center that studies strategies for the Eurasian market.
Lawyer Woo Yoon-keun of the law firm, a former lawmaker who served as the ambassador extraordinary and plenipotentiary to the Russian Federation between 2017 and 2019, leads the center that consists of 20 experts, including Dmitry Letunov, who was admitted to the bar in Russia and has provided legal advice for corporate clients doing business in Russia, Ukraine, Belarus, Georgia, Azerbaijan and Central Asian states.
“Lee & Ko will provide all kinds of information and services needed for companies and investors entering the Eurasian countries,” Lee & Ko Managing Partner Kim Sang-gon said.
Lawyers of Jipyong and Aequo pose after signing a memorandum of understanding at their respective offices via teleconference in this November 2023 file photo. Courtesy of Jipyong
Partnership with Ukrainian law firms
Jipyong signed a memorandum of understanding last November with Aequo, a Ukrainian law firm, to enhance its legal services and networks in Ukraine and Eastern Europe. The partnership was seen as part of the Korean law firm’s efforts to gain a competitive edge over its rivals.
“We will provide services to address legal disputes and risks facing Korean companies entering Ukraine and East European countries,” said Jeong Cheol, a lawyer who leads Jipyong’s Eastern Europe team.
After establishing the team last May, Jipyong hinted at its aggressive expansion in Ukraine, as well as in Poland, Hungary, the Czech Republic and Slovakia, where Korean companies have rushed to build their manufacturing facilities for the European market.
Other Korean law firms have also sought cooperation with Ukrainian law firms to provide better legal services to their corporate clients interested in the market. Kim & Chang, the largest law firm in Korea, has communicated with Ukrainian law firms and other companies there to support the operation of Korean companies in the East European country.