[Edaily Marketin Song Seung-Hyeon Reporter] As mergers and acquisitions (M&A) among major law firms intensify due to fierce competition in the legal market, a seismic shift is expected in the M&A legal advisory sector. In particular, with the merger between Daeryuk Aju Law Firm and Rin Law Firm entering its final stages, changes are anticipated in the rankings of the M&A legal advisory market. This is because combining the two firms’ advisory track records will propel them straight into the top 8 in terms of transaction value. Additionally, with Barun Law Firm and Dongindo Law Firm pursuing a merger, observers predict that the mid-tier landscape below the so-called “Big Six” law firms will be shaken up.

Daeryuk Aju and Rin Combined at 1.3 Trillion… Instantly Securing a Spot in the Top 8

According to legal and investment banking (IB) industry sources on the 19th, Daeruk Aju and Rin plan to hold a merger signing ceremony this month and subsequently complete the merger registration. They are prioritizing “D&L”—the winning entry from a naming contest—as the name for the merged firm. The two firms signed a memorandum of understanding (MOU) for the merger on April 29. Based on value-added tax (VAT) filings with the National Tax Service last year, Daeruk Aju reported revenue of 102.7 billion won and Lin reported 41 billion won, for a combined total of 143.7 billion won. With 384 attorneys, the merged firm will rank among the top six, surpassing Hwawoo.

Above all, the merger between Daeruk Aju and Rin is expected to reshape the landscape of mid-tier M&A legal advisory services. Currently, this market is dominated by the top six law firms, with mid-tier firms dividing up the remainder.

As of September of this year, the total value of completed corporate acquisitions and divestitures, based on the “Completed” category in the legal advisory league tables, stands at 84.4958 trillion won (554 cases). Of this total, six firms—Kim & Chang, Kwangjang, Yulchon, Pacific, Hwawoo, and Sejong—accounted for 74.8657 trillion won (88.6%) and 382 deals (69.0%). Of the remaining 9.6301 trillion won, Jin Law Firm accounted for the largest share at 1.6659 trillion won (17.3%), followed by Jipyong Law Firm (1.1988 trillion won, 12.4%), Ropes & Gray (1.1683 trillion won, 12.1%), Baker McKenzie & KL Partners (1.1386 trillion won, 11.8%) followed.

Lin ranked 11th with 930.4 billion won (12 cases), while Daeruk Aju ranked 17th with 399.0 billion won (5 cases). Combined, the two firms totaled 1.3295 trillion won across 17 cases. In terms of total value, this places them in 8th place—just behind Jin, a mid-tier powerhouse—and ahead of Jipyeong, one of Korea’s major law firms. Looking solely at the market outside the top six law firms, they rank second with a 13.8% share, trailing only Jin. Based on announced figures, their combined total of 1.1488 trillion won (15 cases) places them in the top nine, behind Jipyeong and Jin.

Within these combined results, Rin accounts for 70% of the total value of completed deals and 12 out of 17 deals by number. Rin is a law firm founded in 2017 by Managing Partner Im Jin-seok, a former Kim & Chang partner; by targeting the corporate advisory market, its revenue has increased 31-fold since its establishment. Within the legal community, Daeruk Aju is regarded as having strengths in litigation and international legal affairs, while Rin is seen as excelling in corporate law. This suggests that if Daeruk Aju’s client base leads to M&A advisory work for Rin, there is room for Rin to climb even higher in the rankings. An official from a major law firm stated, “In terms of complementing the areas where the top 10 law firms are lacking, the synergy between these two firms appears to be significant.”

Barun and Dongin Pursue Merger… Will the Merger Generate Synergy?

Barun and Dongin, two other major law firms, signed a memorandum of understanding (MOU) on the 14th of last month to pursue a merger. The tentative name is “Barun Dongin.” Last year’s revenue totaled 187.7 billion won, with Barun reporting 107.6 billion won and Dongin 80.1 billion won. Once the merger is complete, the combined firm will have 553 attorneys. In terms of revenue and the number of attorneys, this merger is larger than those involving Daekyung Aju and Rin.

Since neither firm specializes in corporate law, their track record in M&A advisory services is relatively limited. Based on completed deals, Barun has handled 464.1 billion won (2 deals) and Dongin 96.0 billion won (2 deals); combined, this totals 560.1 billion won (4 deals), ranking them among the top 12 firms by deal value. Both sides aim to sign a merger agreement within 12 months of the MOU taking effect, so it is expected to take some time before the merger is reflected in the league tables.

Nevertheless, some observers note that mergers among large law firms can influence the market as they expand their scale. In fact, Jipyong rose to the top 7 after merging with Jisung in 2008 and currently ranks 8th in the M&A legal advisory league table. In 2023, Class and Hankyeol merged; Class Hankyeol ranked 15th with 215.9 billion won (8 deals) based on completed transactions.

A legal industry insider stated, “Law firms have recently been making various attempts to expand their corporate law practices, and there appears to be a trend toward increasing competitiveness by growing in size through mergers, as seen in the cases of Daeryuk Aju and Rin, or LKB and Pyeongsan,” adding, “It remains to be seen whether the combination of traditional litigation and corporate law will actually translate into new client engagements.”