32 ASIAN LEGAL BUSINESS – JULY 2024 WWW.LEGALBUSINESSONLINE.COM Four Korean Air Force F-15 fighter jets escorted United Arab Emirates President Sheikh Mohammed bin Zayed Al Nahyan’s presidential jet as it entered South Korea’s air defence identification zone on May 28, to honour the first state visit by a UAE state leader to the country. Sheikh Mohammed’s trip followed President Yoon Suk Yeol’s visit to the UAE in January last year, the first such visit by a South Korean leader since the two countries established diplomatic ties in 1980. The two-day summit in Seoul - which included an air show by the air force’s Black Eagles aerobatic team, and meetings with chiefs of South Korea’s large business groups, including Samsung Electronics chairman Lee Jae-yong, Hyundai Motor Group chair Euisun Chung and SK Group chairman Chey Tae-won - culminated with the signing of the UAE-SK Comprehensive Economic Partnership Agreement (CEPA), a first for South Korea with a Gulf nation. The CEPA is set to significantly boost the $21 billion bilateral trade market between the two countries, reducing trade barriers and tariffs, particularly in the energy, defence and automobile sectors. The deal will eventually scrap tariffs on more than 90 percent of the imports of both nations. Lawyers from leading law firms in both countries say the deal is expected to create a substantial demand for legal services, particularly in corporate transactions, project finance, tax, intellectual property and compliance. INCREASED COLLABORATION Jiwon Ha, senior counsel and head of UAE law firm Al Tamimi & Company’s Korea group, says the agreement will change the legal landscape for crossborder work across both countries. Local firms will be under pressure to develop knowledge of the other country’s legal systems and business practices to compete with international firms that have established presences and may initially have an advantage. “The agreement is likely to create a more dynamic and competitive legal market in both the UAE and South Korea, favouring firms that can quickly adapt, offer genuine cross-border expertise, and provide innovative solutions tailored to the new trade regime. Clients are expected to seek one-stop-shop services for their cross-border needs, benefiting firms with comprehensive offerings and strong networks,” Ha says. “We can expect an increase in strategic alliances between Emirati and South Korean law firms, with smaller local firms likely seeking partnerships to compete effectively against larger international players,” he adds. Cross-border legal work between the two nations, which has been limited so far, is poised to rise sharply as UAE sovereign wealth funds look to invest over $3 billion in South Korean markets, and the reduction in tariffs brings Korean industry to the Gulf nation. Bae, Kim & Lee is believed to be first Korean law firm to launch operations in the Middle East after setting up an office in the Dubai International Financial Centre in 2015. Sangchul Kim, a partner in the South Korean Big Six firm’s disputes practice, agrees that navigating local regulatory and legal concerns may lead to an increased focus on building specialisation and cross-collaboration among law firms on both sides of the spectrum. “To effectively serve their clients, law firms may seek to form strategic alliances or partnerships. Emirati and South Korean firms might collaborate to offer comprehensive legal services that leverage their respective strengths. International law firms, with their extensive global networks and resources, will also play a significant role by facilitating cross-border transactions and advising MIDDLE EAST As the historic economic partnership between the UAE and South Korea takes effect, lawyers in both countries are building capabilities across multiple practice areas to help clients navigate unfamiliar regulatory environments through specialised practice groups and strategic alliances. BY NIMITT DIXIT KOREA ON THE HORIZON Image: Andy.LIU/Shutterstock.com
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