Lee & Ko successfully represented the Korean Bar Association and Seoul Bar Association in a landmark decision overturning all KFTC sanctions.

Lee & Ko successfully obtained a ruling from the Seoul High Court that overturned all sanctions imposed by the Korea Fair Trade Commission (KFTC) against the Korean Bar Association and the Seoul Bar Association (collectively, the “Bar Associations”).

In this case, the KFTC determined that the Bar Associations had engaged in prohibited conduct for business associations under the Monopoly Regulation and Fair Trade Act (MRFTA). The Bar Associations requested attorneys that are members of the Bar Associations to cease using the legal platform Law Talk and took disciplinary action against members that continued to use the platform.

Through a review of case precedents and a systematic interpretation of the Constitution and relevant laws, such as the Commercial Code, the Civil Act, and the Attorney-at-Law Act, Lee & Ko successfully persuaded the court by arguing:

(i) The Bar Associations’ supervision and management of member attorneys are not subject to the MRFTA or the Fair Labeling and Advertising Act, and the KFTC does not have the jurisdiction to review the Bar Associations' disciplinary actions taken against members, as bar associations function in a manner similar to public corporations and are entrusted with public administrative duties; 

(ii) Unlike general goods and services markets, where price competition is encouraged, the legal market is regulated to ensure that only licensed attorneys can provide legal services, thereby preventing the involvement of commercial capital. Therefore, the Bar Associations, established under the Attorney-at-Law Act, are granted broad autonomy in managing and supervising attorney conduct, including regulating the scope of advertising on platforms; and

(iii) In South Korea, there is a significant need for regulatory oversight over the operation of online legal platforms, including Law Talk.

Law Talk, a first-generation legal platform in South Korea, has been involved in numerous disputes over the past decade regarding the scope of the Bar Associations' management and supervision, as well as the legality of the services it provides. In addition, it is highly likely that similar disputes will arise in the future concerning other legal tech businesses. This ruling is expected to contribute to recognizing the Bar Associations' broad autonomy in managing and supervising attorney conduct, and provide a foundation for protecting the public and the high ethical standards of the legal profession.

Through this decision, it is expected that legal tech guidelines, which are being developed by the Ministry of Justice, will be properly established to contribute to sound and sustainable growth and innovation in the legal tech industry within the framework of laws such as the Attorney-at-Law Act.