The most widely read magazine for Canadian lawyers
Issue link: https://digital.canadianlawyermag.com/i/50840
around the world, rather than rely on things within their own country where domestic demand is weak. Some of the biggest deals you see are being done by Japanese companies." Stinson observes a similar pattern with Korean companies. "Since the Korean economy is in the doldrums, the chaebols [Korean conglomerates], like the Samsungs of the world, have a lot of money, and they're looking for investments around the world." While Korea has emerged as a leading Asian economic power, Canada represents a small market for Korea. "Most of their trade is still with the U.S. and China," says Jay Shin, a BLG partner. "A Korea- Canada free trade agreement has yet to be reached, though it's been in discussion for some time now." Shin thinks more can be done to boost Korean investment in Canada. In Korea, the government takes an active role in helping businesses get off the ground, sometimes providing financial incentives, in an effort to promote invest- ment. "That's not necessarily the case in Canada," says Shin. "Korean businesses find that once they set up a company here, the kinds of assistance they expect from local governments — which can range from financial incentives to hiring information — isn't there. The Canadian and provincial governments tend to be more passive in this regard." Shin sees potential synergies between Korea and Canada, particularly in B.C. "Korea sits in the middle of the Far East, and can function as a hub for the region. At the same time, B.C. can be a gateway for Korean companies into North America. Korean companies have the perception that taxes are too high in Canada. But the reality is that the B.C. corporate tax rate isn't as high as some U.S. states." Korea's legal market is closed to for- eign law firms, so lawyers servicing the Korean market work from Canada. There aren't many Canadian lawyers practising Korea-Canada transactions — Shin is one of the few — so perhaps setting up an office in Korea isn't necessary — yet. Apart from Blakes, Lang Michener, and Davis, other firms seem content handling their Asia-Pacific work from Canada, supplemented with frequent trips to Asia. "We haven't had clients say to us that they won't work with us because we don't have an Asian office," says Donner. But he admits having a physical presence in China is beneficial, and says his firm is looking into it. At one time, Canadian law firms had nine offices in China and Hong Kong, but Blakes is the only one left. With Lang Michener's recent Hong Kong opening, perhaps other law firms will follow suit. Or not. Canadian law firms, like all other businesses, are taking a cautious approach, waiting for signs of an eco- nomic rebound before taking the plunge back into Asia. "If we do open an office in China," says Donner, "we don't want to close it." 34 SEPTEMBER 2009 www. C ANADIAN Law ye rmag.com ntitled-1 1 8/13/09 8:45:40 AM