Barun, Dongin members divided over benefits of merger

South Korea’s leading large law firms Barun and Dongin have signed a memorandum of understanding (MOU) to pursue a merger, but views within the firms remain divided over its necessity and potential benefits. Since the two sides must negotiate detailed terms over the next year and then go through internal approval procedures again, analysts say it is difficult to determine whether the merger will go through.
According to legal industry sources on the 18th, Barun and Dongin recently made their merger plans official and began detailed discussions. Last year, Barun had revenue of 107.6 billion won and Dongin 80.1 billion won, for a combined total of 187.7 billion won. Barun has 303 lawyers and Dongin 250; if the merger goes through, they would form a mega-firm with 553 lawyers.
The two sides have said they will form a merger committee on the premise of an equal merger to discuss governance, personnel, evaluation and compensation systems, organizational operations, branding and office space, among other matters. They aim to sign a definitive agreement within 12 months of the MOU taking effect.
Some of Barun’s partner lawyers have recently raised objections over the need for a merger and whether it would generate substantial synergies. “Several lawyers among the partners oppose the merger,” one Barun partner lawyer confided. “It’s true that we need internal discussions among the partners.”
Concerns have been raised that their practice areas overlap considerably, since both Barun and Dongin count civil and criminal litigation and corporate-related cases among their main strengths.
“Nothing has been decided at all about whether the merger will happen or not under the current circumstances,” a senior Barun official said. “We have only just begun discussions, and we don’t know what will happen going forward. There are various possibilities.”
By contrast, the mood within Dongin was understood to be relatively favorable toward the merger.
A Dongin partner lawyer, discussing internal reactions to the merger, said, “Some lawyers are opposed, but the mood is that most are in favor. Since the MOU was signed, people have been assuming that the executive leadership will handle things.”
[email protected] Yoo Seon-jun Reporter