Korean firm Hwang Mok Park has closed its Shanghai office less than a year after acquiring it through a merger with another law firm, citing the office as ‘unsustainable.’ Although managing partner Sang Il Park did not outline a specific date, he said the decision to close the Shanghai office was made “months after” the merger with boutique firm Hansueng was finalised, in September 2009.
That merger had handed the firm control of Hansueng’s two-year old Shanghai office, its first base outside of Korea. Park said that partners had considered various ways to make use of the office, but that it was ultimately closed based on business rationale, which has cut costs and time for the firm. All three Shanghai-based partners have been moved permanently to Hwang Mok’s base in Seoul. “It was a business decision to find a more efficient way to manage our time and our local alliances,” said Park. “We determined that [closing the office would be] more efficient for our China practice, and for our coordination and alliance with the Chinese law firms.”
Park said that the China practice is still operational, with its lawyers working on a fly in/fly out basis with the firm’s PRC ‘best friend’ alliance firms. “We’re still doing work for our Chinese clients and whenever it is necessary, our lawyers travel to China. We have our Chinese law firm friends who we work with on a case-by-case basis to assist us through local matters, but this way we can save costs and time,” said Park.
The news comes as fellow Korean firm Shin & Kim and Japanese firm Nishimura & Asahi both opened a China representative office this year. Park said each firm has its own business motivations for going abroad, and that for now Hwang Mok Park is remaining in the domestic market.
“Many Korean firms are interested in opening offices abroad, and each has their own unique background and business strategy for doing so. I think basically it’s a good sign that Korean firms are going abroad to expand practices, but the issue is which of those is better suited. For our firm now it’s better to remain in Korea to coordinate with our friends rather than having a fixed base,” he said.
Park did not rule out re-opening the office in the future, but said it would depend on deal flow. “Depends if our work volume grows, and to the extent that we need a fixed place there then probably we would open. But we don’t have a specific timeline for that yet.”
Related stories:
- Shin & Kim opens in Shanghai (June 2010)
- HMP gains Shanghai office (December 2009)
- HMP merges with Hansueng (April 2009)
