Yonsei News

Alumnus Gene Lee is the CEO of LBOX, a legal tech startup that has merged the legal field with data technology, dominating the market within just five years and driving innovation in the Korean legal tech industry. A former M&A lawyer at a law firm, he stepped out of the legal insider circle to start his own business, which now provides Korea's No. 1 precedent search service, used by more than 55% of all lawyers. However, this is far from the end for Lee, as he is now incorporating AI technology to enhance the sophistication of domestic legal tech services. His life, his business, his conviction, and his unique insights have led to a series of turning points that are changing the paradigm of the industry.

The Expected Path: Taking on the Bar Exam During College

Since childhood, Lee has never considered a career path other than law, and thus it was a natural progression for him to enroll in the department of law and prepare for the bar exam. With a clear career path in mind, his preparation for the bar exam began early on.

"Pursuing a career in the legal sector has been something I was interested in since I was young, and back then, many liberal arts students would choose law as their major. The bar exam also presented a sense of challenge, which is probably why I chose to start studying for it early without much hesitation. After the winter break of my freshman year, I moved into Sillim-dong, also known as Seoul’s ‘Exam Village.’  Until the first round of the bar exam, I was still in school, preparing for the bar exam in Sillim-dong during vacations and taking classes during semesters. I took my first bar exam in my sophomore year, and it seemed manageable. With much preparation and effort, I was able to pass the exam as an undergraduate."

Passing the bar exam as an undergraduate, even for students at the most prestigious universities, is an extraordinarily difficult challenge. Given that the early years of campus life symbolize freedom from years of stressful college entrance preparation, Lee’s decision to prepare for the bar exam early would have been impossible without a clear sense of purpose, commitment, and execution of the path he desired.  In response to this, he gave a rather unexpected answer.

"I believe that I got the most out of it with minimal effort. And there was luck, of course. I don't think sitting at a desk all day studying was ever that hard for me. I'm a big fan of monotony. When I'm determined to achieve something, I intentionally choose to make my life monotonous. Having to make various choices in life consumes a substantial amount of energy, so maintaining a monotonous routine can be seen as a strategy to maintain focus over a long period."

However, Lee’s campus life was not entirely monotonous. He found ways to enjoy college life.

"My campus life was more exciting than it seemed. While attending lectures and studying for the bar exam, I often spent time in the school library. I’ve always loved rap music, so I was very active in the black music club during my freshman year. After passing the bar exam, instead of immediately enrolling in the Judicial Research and Training Institute (JRTI), I chose to participate in an exchange program. I went to Washington College of Law (WCL) for a semester as an exchange student with the help of Professor Kim Jung-Oh who kindly wrote a letter of recommendation, and I loved it. It’s uncommon for undergraduates to attend law school. I wanted to experience something different from others who passed the bar exam, most of whom prepared for JRTI programs in advance.”

Lee’s decision to postpone his entry into JRTI in favor of an exchange program can be attributed to the valuable advice of several professors. The establishment of Yonsei Law School at that time brought an expansion of faculty members with extensive practical experience. Lee was particularly influenced by Professor Nam Hyung-doo, who affectionately advised that the typical path of passing the bar exam at a young age, attending judicial training, and becoming a judge might be a bit boring for Lee. Thanks to the people around him, Lee was able to gain a new perspective.

Choosing a Dynamic, Challenging Path over a Static One

After completing his exchange program, Lee joined the Judicial Research and Training Institute (JRTI), an organization under the Supreme Court that he views as being established to nurture judges. In fact, 70 to 80 percent of the subjects taught at the institute were civil and criminal precedents. Since civil law was Lee’s favorite subject, he never doubted his dream of becoming a judge. However, during his time as a military judge after completing the institute, he decided to explore other career paths.

"When studying at the JRTI, students undergo immense pressure and competition to become judges. You start to believe in the illusion that becoming a judge is the most valuable thing in the world, without considering whether it truly holds unique value for you. That could have been the case for me as well. However, something happened during my three years in the military. I served as a military judge advocate and, simultaneously, was part of the Aerospace Operations Group, conducting research on aerospace law and organizing conferences. At that time, I interacted with lawyers from the law firm Kim & Chang and learned that many individuals who participated in the aerospace law study group later chose to work for Kim & Chang. Hearing new stories from lawyers working in the field changed my perspective. I then realized that being a lawyer was more appealing."

Lee was particularly drawn to the variety and dynamic nature of a lawyer’s work. Even if a dispute didn't end up in court, there were many instances where the lawyer's role was instrumental in settling or resolving important cases. This led him to believe that being a lawyer offers vast potential.

"I was particularly influenced by the advice that being a lawyer offers the potential for a wide range of experiences. It also made sense to me that following the flow of capital is a great way to gain a broader understanding of society, and that corporate M&A law offers an excellent opportunity to experience that flow up close. After joining Kim & Chang, I pursued a career as an M&A lawyer, in which I was involved in the buying and selling of companies. Most matters that don't escalate into conflicts or disputes would be settled without ever reaching the judge’s desk."

Lee learned and grew at Kim & Chang, an esteemed law firm. While it was challenging to be trained in multiple disciplines, not just M&A, the experience gave him the holistic perspective necessary for a lawyer specializing in M&A. Although he was more than capable as an associate at a prestigious law firm, he decided to pursue an MBA five and a half years after joining the firm. Given Lee’s specialization in M&A, one might assume he pursued an MBA to further his professional development as a lawyer, but that wasn’t the case. Lee developed a new desire to start a business.

"I decided to pursue an MBA because I already knew I wanted to start a business. I originally had the opportunity to study abroad with the support of my law firm, and that’s when I first began thinking about starting my own business. If I were to study abroad at a foreign law school, it would mean delving deeper into the legal field, and I would spend time applying what I’ve learned. And when I get back after completing my studies, I will be in my mid-forties. I wondered if I would still have the opportunity to pursue what I wanted, which led to my decision. I decided to leave my job and go to the U.S. to start a business, but I didn’t have the foundation to do so. It's not like I'm a business major; I've been trained in the legal sector all my life. Everything was challenging except for the legal aspects. So my realistic option was to pursue an MBA at Berkeley."

Lee’s decision involved substantial costs. For two years, he had to bear the hefty costs of living and tuition in the western United States—expenses he wouldn’t have faced if he had attended law school with his law firm’s support.

Reimagining and Redefining the Legal Services Market  

Confronted with such harsh realities, Lee chose to prepare in advance to seize the opportunity rather than give up. After deciding on a startup idea and business model in the U.S., he established a legal entity for his legal tech startup, LBOX, before returning home. At the same time, he managed to secure seed funding while traveling back and forth between Korea and the U.S. As a result, Lee’s LBOX was launched immediately upon his return home. Given his legal background, one might assume that his business focus was a natural choice, but it wasn't his first consideration.

"I had the idea that I wanted to pursue something different. Moreover, my experience as a lawyer was centered on data-based technology, which was quite removed from the world of innovation and productivity. However, sometimes the same situation looks different depending on one’s perspective. When I viewed the law from a legal insider's perspective, I thought we were merely repeating the practices of 10 years ago and would continue to do so in the future. However, when I reassessed the law from the perspective of an entrepreneur driven by desperation, it appeared very different. This introspection led me to the fundamental question: Is there truly a 'new' type of lawsuit these days? At the time, it was evident that I was entering the data business, and once I recognized the significant potential of the legal tech industry, it shifted the direction of my business."

LBOX focused on precedent search services, leveraging the largest precedent database in Korea, and led innovation with services that stood out from competitors. The fully specialized precedent search service has gained a solid customer base, and a virtuous cycle has been established as users share precedent data and LBOX rewards them. This rapid growth was possible because Lee continually questioned the fundamental nature of the service.

"When attracting investment, the ‘why’ is much more significant than the ‘what.’ Let’s assume there is a restaurant. If the customer pays for the food they ordered, it would be considered an F&B business. However, if the owner offers cash to customers as they leave after finishing their meals, this restaurant would be operating a data business. Similarly, a few precedent search services had launched before us, but I viewed the essence of the legal tech sector as a data business. That's when the concept of ‘precedent’ caught my attention. I also recognized lawyers as the ‘main players’ at the center of that ecosystem. I realized that the key differentiator for precedent search services lies in establishing data exchanges and partnerships with the largest number of lawyers. The premise is that the company must provide value to customers first."

This strategy resulted in the company accumulating the most precedent data within its first year of operation. Disrupting the existing market order and creating value worthy of investment is not possible without innovation. The secret to that innovation was simple. No matter how meticulously Lee prepared and launched the service, success would not have been possible without insight into the market, a clear purpose for the service, and the customer value he aimed to deliver. Even now, these remain his top priorities.

"I conducted some quantitative analysis. Approximately 1.5 million precedents are generated annually, totaling 15 million over 10 years. Initially, the market leader had a cumulative total of only 300,000 precedents. To make our service more compelling, we aimed to provide search results for 1 million precedents. I was convinced that if we could create such a service, we could change the game with a value proposition that lawyers couldn't resist."

Lee’s conviction became the game changer. From its inception, LBOX revolutionized the legal industry. LBOX currently holds approximately 3.3 million precedents. It has a market share of more than 55% of lawyers in Korea and over 80% of newly admitted first-year lawyers. Additionally, it is utilized by some of the country's leading law firms as well as government offices such as the National Police Agency. It is astonishing that all of this has been accomplished by a five-year-old startup.

Discovering New Values Based on the Growth of the Precedent Search Service

The precedent search service, which has been the cornerstone of LBOX's growth, has demonstrated market-leading performance. However, the company isn't stopping there and is expanding its reach to more services as it enhances its data, services, and technology. The company has gained traction by offering a wealth of information and insights within the precedent search ecosystem, along with advanced services that meet the evolving needs of users. One such service is ‘L Find,’ which allows users to find lawyers based on the cases they've worked on.

"‘L Find’ is a service where users can find lawyers based on the cases they have handled. This service is provided from the client's perspective. When you use other services to find a lawyer, you're usually inundated with information from lawyers who are advertising themselves. Thus, the business model for such services is essentially advertising. But as a client, wouldn't you want to find a lawyer who has worked on cases most similar to yours and is able to quantitatively verify that they've actually done those things? To meet these needs, ‘L Find’ was launched, leveraging our existing precedent search service. We have a platform with a large number of precedents and a substantial number of lawyers as users. Matching the precedents with lawyers can create a new type of service."

Instead of merely viewing the vast number of precedents as data, Lee identified a point of intersection with another entity's needs, opening up new opportunities. On the one hand, it's a quantitative, data-driven matching service. While there can be concerns about polarization, Lee believes this is a step in the right direction.

"It can be uncomfortable for people who don't know the legal field in general and vaguely think, 'Oh, I've got what it takes.’ Exposure may also become polarized depending on one’s experience in the field. However, I believe it's a process of making the legal market more transparent. Therefore, the group we are focusing on is lawyers who are new to the market. These are lawyers who haven't taken any cases yet, and therefore might not be the most preferred group from a quantitative perspective. We are therefore trying to figure out what services we can offer to help fill that gap. Despite not having litigation experience, these lawyers can still bring their expertise, passion, or interest in a particular area to the L Find platform to help clients with their questions and gain their trust. I wish to support these lawyers as they navigate their way to their rightful place within the new legal landscape."

Combining Law and Tech to Create an Effective Professional Service

There is another service that Lee believes will provide LBOX with a new growth opportunity. The company launched the 'LBOX AI' service by utilizing its database, which can be easily integrated and enhanced with AI technology. Being a large language model (LLM)-based service for legal professionals, ‘LBOX AI’ uses generative AI technology to quickly and accurately answer questions without the need for repetitive keyword searches.

The company’s unique information analysis and extraction technology, combined with AI, allows for the extraction of facts, arguments, and judgments from a single precedent. Additionally, users can see the source of the response to ensure credibility. This use of generative AI technology has transformed the company from providing precedent search services to offering analytics and solution proposals.

While AI technology is being applied to services in many areas, there are concerns that it might be a bubble. Can AI technology drive further growth in the legal tech market, especially in legal information, where reliability is a top priority? Moreover, the law is based on human relationships. While cutting-edge solutions are being proposed in the legal tech market, it is clear that the legal field is fundamentally a complex tug-of-war between human interests, requiring consultation and rigorous judgment. Some worry that the law and technology will never be able to strike a balance. In response, Lee believes that such an environment actually leaves ample room for the use of technology, as he views it as a way to preserve the essence of the law.

"I think the law has an inherent significance. The role of law in society is very important. Humans are wired for relationships. Some human relationships don't work out as planned, and people often resort to the law to settle disputes. In the end, I don't think the law will become obsolete unless human social behavior vanishes. So, the more complex a society becomes, the greater the role of the law, and finding effective ways to fulfill that role is crucial for our society and the competitiveness of our justice system. I think a country's judicial competitiveness has become synonymous with the level of legal AI it has. Someone has to do it. We can't rely on old methods because new solutions are emerging rapidly with the current technology base. That's what technology needs to address, and more specifically, what legal AI needs to tackle. The time has already come, and I'm confident that LBOX has enough data to ride this significant wave of change."

Lee sees a paradigm shift in the legal field, a field that has existed for as long as humanity and will continue to exist, driven by AI technology. One of the things he feels responsibility for in this context is judicial sovereignty. If adopting AI technology in the legal sector is inevitable, losing legal AI sovereignty to another country would be akin to undergoing trials under foreign jurisdiction. As such, he is well aware of his responsibilities and role in terms of judicial sovereignty.

Today's Pessimist, Tomorrow's Optimist

Lee plans to continue focusing on enhancing services and creating value in new markets by combining AI technology.

"Looking back, I feel like the company has grown step by step. Even with the same service, our customer base has evolved and expanded. We started with lawyers, but we know there's a broader market out there. Lawyers and police officers form our largest customer base, but we also serve many other legal professionals such as customs officers, patent attorneys, judicial agents, and labor lawyers. Their combined market is larger than the lawyer market, so we're exploring it as a potential future service."

Lee's vision is clear. It is to create a sustainable cash-generating organization. While others might aim for a more abstract goal, his vision is deeply rooted in reality. He hopes the company will be sustainable, constantly innovating as a business and organization, rather than just being in the spotlight as a successful startup.

"Of course, there's the dream of going public. It's also necessary for LBOX's service to be sustainable. I'm very optimistic about the long-term future, but at the same time, I'm quite pessimistic about the short-term outcomes. I guess it's my job to hold those two contradictory things together. So when someone says, 'You're going to be great,' I respond, 'I’m already doing well.' But when someone asks, 'Is your business successful?' I reply, 'Nope.' (Laughs) I'm so confident in the long-term future that even if there are challenges in the short-term, I'm able to keep myself from blowing it out of proportion. However, there is one variable. I think it's all about how you live your day. My future depends on a fulfilling day today. So I try to live with conviction."
 
In the words of the most stalwart of entrepreneurs, the path forward seems clear. Alumnus Gene Lee’s present is characterized by intense moments, and his future will be marked by leaps and innovations.