Kim & Chang, South Korea's leading law firm, is poised to expand into Indonesia, joining the race among major legal firms seeking a foothold in Southeast Asia's most populous nation.
The firm is in the process of opening an office in Jakarta, with plans to commence operations as soon as the end of this month. Once established, the Jakarta office would be Kim & Chang's fifth overseas base, following ones in Hong Kong, Singapore, and Ho Chi Minh City and Hanoi in Vietnam.
Kim & Chang's entry into Indonesia comes as other South Korean law firms, such as Barun Law and Lee & Ko, are also ramping up their presence in the country.
Barun Law officially announced its entry into Indonesia on Jan. 30 by signing a business partnership agreement with LSW Attorney & Partners. Lee & Ko, meanwhile, has been preparing to open its Jakarta office since last year. Other well-established firms in the Indonesian market include BKL, Yulchon LLC, Shin & Kim LLC, Yoon & Yang, and Jipyong.
The Indonesian market has become increasingly attractive to leading law firms as the country emerges as a key production base for manufacturers, and is viewed as a potential alternative to China and Vietnam. With a population of 276.3 million and a growing number of young people, Indonesia is attracting attention from both domestic and international companies.
Many domestic companies have pointed to Indonesia as their main production base, with most of the nation's top-ten groups making large-scale facility investments. Companies such as Samsung Electronics Co., Hyundai Motor Co., LG Energy Solution Ltd., SK On, GS Caltex, POSCO Holdings Inc., and Lotte Chemical Corp. have either built or are pushing for the construction of large-scale production plants there.
Law firms anticipate that the expansion of companies' investment will drive demand for various legal services, including transaction structure design, legal risk assessment, and contract drafting. Some law firms are said to be so dedicated to the Indonesian business that they went on business trips earlier this year to assess the local market situation.
Write to Jin-sung Kim at
jskim1028@hankyung.com
