“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 Worldwide Service”, 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
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The Federal Practice Group Worldwide Service (“FPG”), founded in 2011 by Eric S. Montalvo and Debra A.
D’Agostino, began as a team of tough, experienced, respected federal
practitioners focused on the unique bodies of law created by the U.S.
federal government. FPG provided legal services worldwide -- wherever
military members or federal employees were stationed -- in the areas of
military law, national security law, federal employment law, and international
business law. ▷ Inquiry: 202-862-4360