Attorney Daehoon Park Quoted for Korea Daily
Posted By fedpractice || 29-Feb-2016
“Bring your company to the international horizon, but with legal risk management by an international law expert“
Daehoon Park, attorney at the international law firm “The Federal Practice Group”, pointed out two regrettable mistakes that Korean businesses make with regard to global business operation.
The first is the business is not well aware that there are enormous opportunities outside of Korea. The second is that Korean businesses can encounter legal issues without proper help from an international transaction lawyer, sometimes ending in paying enormous damages that they could have prevented with legal consultation from the start of negotiation.
Mr. Park, at the law firm headquartered on K Street in Washington, DC, illustrated a recent case that an auto parts company in Korea had to reimburse $ 50 million for defective products. Due to this legal cost, the Korean manufacturer suffered a blow despite their successful expansion in the US. He stressed that “given the nature of auto parts, there would be always issues of defective products. The problem was the legal response.” He added that legal advice from an international commercial lawyer could have solved the problem without paying a big indemnity of $ 50 million.”
He stressed that it is wiser to involve an international lawyer from the start of negotiation for cross-border transactions rather than go to a law firm after when legal action is pending. He explained that many Korean companies focus only on global marketing. According to him, with no legal consultation early on the businesses can save initial legal fees, but said the bigger cost is waiting for the businesses if mistakes are made. Mr. Park wants to inform Korean business of the uniqueness of US legal system. ”The United States has a pre-litigation phase that is complex and can be expensive for small and medium Korean business,” he said, adding that “Arbitration could be a good alternative to litigation, which is fast and cost-efficient. While legal costs might appear to be burdensome for Korean companies, ultimately it can be far less expensive than not having legal representation from the beginning. So, the best way is find a mid-sized law firm with expertise on international transaction laws.”
This article has been translated – to read the article in its original form, please visit Korea Daily by clicking here.
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