South Korea is preparing to open its doors to international law firms. The country's Ministry of Justice has published a draft bill, which, if passed by the National Assembly, would for the first time allow foreign law firms to establish offices. The first offices are expected to open by mid-2008.

There is, however, a catch: the draft bill prohibits the employment of Korean lawyers as well as fee-sharing with local lawyers. The ministry says it understands the necessity to discuss these issues and will address them during free trade agreement negotiations with the European Union and the US.

The opening up of the South Korean market could see Australian firms seizing the opportunity to establish offices, some of them already active in the country via other offices within the region. Three firms stand out as the most likely: Allens Arthur Robinson, Minter Ellison and Mallesons Stephen Jaques.

Allens has offices throughout Asia and recently added Hanoi and Ho Chi Minh City to its network. It has never made a secret of its aspirations to establish a broad presence in Asia.

A spokesperson for the firm, however, says Allens already has a relationship with South Korean firm Shin & Kim - where it has senior associate Michael Chang on secondment - and will focus for the time being on the recent takeover of Phillips Fox's Vietnamese operations.

Mallesons' spokesperson, Dale Bryce, says the firm directs all its attention to China: "Client demand means that we continue to give priority to on-ground resourcing in China. However, we do keep an eye on other markets and have completed recent transactions in South Korea."

Minter Ellison has offices in Jakarta, Hong Kong and Shanghai; however, chief executive Guy Templeton (pictured) stated clearly that Seoul wouldn't be added to this list. "Although we work with a number of Korean clients with investments in Australia, at the moment we don't have any plans to open an office in South Korea," he said.