Should I Ally with My Older Sister... All Eyes on Vice Chairman Cho Hyun-sik

Appointment of a Law Firm with Strong Expertise in Limited Guardianship
Possibility of Independent Path Depending on Trial Outcome

[Asia Economy Reporter Kiho Sung] As the management rights dispute within the Hankook Tire & Technology Group (formerly Hankook Tire Worldwide) intensifies, attention is focused on the actions of Vice Chairman Cho Hyun-sik, the eldest son of Chairman Cho Yang-rae. Although Vice Chairman Cho has not yet clearly stated his position regarding his sister, Cho Hee-kyung, Chairwoman of the Hankook Tire Nanum Foundation, filing a petition for limited guardianship over their father, he is showing signs of preparing for the management rights dispute, raising concerns that the conflict may escalate.

According to the business community on the 5th, Vice Chairman Cho recently stated through Law Firm Won, "As a family member and a major shareholder of the group, I am considering the issue of Chairman Cho's limited guardianship petition," adding, "I will decide my future course of action after considering various possibilities."

Although Vice Chairman Cho expressed a simple stance of "considering" the matter, he has already made preparations. He is currently undergoing a second trial on charges of embezzlement related to his duties and is responding through Law Firm Kwangjang. However, separately from this, he has appointed Law Firm Won to prepare for the ongoing dispute.

Law Firm Won is frequently involved in divorce, inheritance, and management rights disputes within the business community. Attorney Hong Yong-ho, who is leading Vice Chairman Cho's legal representation, has experience representing Samsung Electronics Chairman Lee Kun-hee and successfully winning an inheritance dispute case against the late Lee Maeng-hee, former Honorary Chairman of CJ Group. Recently, during the management rights dispute of the Hanjin family, he gained attention as the legal representative of former Korean Air Vice President Cho Hyun-ah.

Law Firm Won also has strong expertise in the limited guardianship system. The firm currently operates a separate Inheritance and Guardianship Center and recently published a book titled "Legal Issues of Inheritance and Guardianship" through this center. Additionally, the nonprofit organization Seon, which was designated as the limited guardian of the late Shin Kyuk-ho, Honorary Chairman of Lotte Group, was separately established by Law Firm Won for public interest projects. Attorney Hong stated, "Vice Chairman Cho is comprehensively considering the impact of the current situation on the group and the family," adding, "No specific schedule has been decided yet."

Although Vice Chairman Cho is preparing for the management rights dispute by appointing legal representatives, there is also a possibility that he may choose an independent path rather than forming an alliance with Chairwoman Cho. Previously, Chairman Cho and Chairwoman Cho expressed positive opinions on the social return of Chairman Cho's assets through their respective statements. If the eldest daughter, Chairwoman Cho, becomes the limited guardian and, through additional trials, the shares transferred to the second son, President Cho Hyun-bum, are restored, part of Chairman Cho's assets could be returned to society through the Hankook Tire Nanum Foundation. In this case, Chairwoman Cho, who oversees the foundation, could take the lead.

The outcome of President Cho's trial is also expected to be a variable. President Cho was indicted on charges including breach of trust and embezzlement and was sentenced on April 1st in the first trial to three years in prison with a four-year probation and a fine of 615 million KRW. According to the Act on the Aggravated Punishment of Specific Economic Crimes, executives who commit embezzlement or breach of trust exceeding 500 million KRW are barred from returning to the company. A business community official explained, "Various trials are intertwined, and there are many variables," adding, "It is a situation that cannot be easily predicted."