[Yonhap News file photo]

Mid-sized domestic law firms are increasingly pursuing mergers, engaging in a race to scale up their operations.

Analysts suggest this trend is driven by the realization that merging existing assets is more advantageous for survival than individual lateral hiring, especially as the demand for talent has surged due to major shifts such as judicial reform and the implementation of revised criminal procedure laws.

According to Yonhap News reports on the 21st, mid-sized law firms Barun Law and Dongin are currently in talks regarding a potential merger.

Barun stated, "We are in discussions with Dongin regarding a merger," but added that "nothing has been finalized."

According to sources such as the Legal Times, the revenues for Barun and Dongin last year were approximately 107.6 billion won and 79.5 billion won, respectively, with roughly 300 and 240 attorneys each.

If the merger is successful, it would result in the birth of a large-scale law firm with 180 billion won in revenue and over 500 members. Based on last year's revenue, this would place the firm at 7th in the industry, following Hwawoo (281.2 billion won).

However, as these are early-stage discussions, sources note that there are still significant hurdles to overcome.

Barun previously pursued a merger with law firm LIN in the second half of last year, but the deal ultimately fell through.

Subsequently, LIN began merger procedures with Daeryook Aju in April of this year.

Last year, Daeryook Aju recorded 102.7 billion won in revenue, while LIN recorded 41 billion won. Their combined revenue of 143.7 billion won would surpass Jipyong, which is ranked 8th in the industry.

As of last year, the number of attorneys at Daeryook Aju was 247, and 137 at LIN, totaling 384.

Prior to these developments, LKB & Partners and Pyeongsan merged in July of last year to launch LKB Pyeongsan, a firm with 150 attorneys.

The underlying reason for this wave of mergers among mid-sized law firms is said to be a sense of crisis fueled by the widening "wealth gap" within the industry.

An industry insider explained, "The domestic law firm market is not large, and the so-called 'Big Firms'—Kim & Chang, Bae, Kim & Lee, Shin & Kim, and Lee & Ko—are acting like black holes, absorbing cases and exacerbating the 'rich-get-richer, poor-get-poorer' phenomenon," adding that "for mid-sized firms, pursuing a merger has become a necessary step for survival."

Logos of Barun Law and Dongin [Screenshots from the websites of Barun Law and Dongin]