Chairman Cho Yang-rae of Hankook & Company Appears at Limited Guardianship Hearing... 'Silent'

[Asia Economy reporters Ki-min Lee and Dae-hyun Kim] On the 21st, Cho Yang-rae, chairman of Hankook & Company and father of the Cho brothers involved in the management rights battle at Hankook Tire, appeared for his limited guardianship hearing.

The Seoul Family Court held a hearing at 2 p.m. on the same day to examine the commencement of limited guardianship for Chairman Cho. Limited guardianship is part of the adult guardianship system and is a system where the individual, spouse, or relatives within the fourth degree of kinship can request guardianship from the court for a person with mental disabilities who has 'insufficient' capacity to handle affairs. However, in the case of adult guardianship, which is initiated when it is judged that the capacity to handle affairs is 'continuously lacking' due to mental disabilities, the guardian can exercise most of the ward’s rights, but the guardian’s authority under limited guardianship is restricted to the scope determined by the court.

At around 2:12 p.m., Chairman Cho entered on his own without assistance from attendants or aids such as a wheelchair. When reporters asked, "How do you feel about appearing in court?" and "It seemed you intended to pass the holding company (Hankook & Company) to your eldest son, so why did you sell shares to your second son?" Chairman Cho did not respond and proceeded to the courtroom.

The hearing will proceed with the court asking whether Chairman Cho has the ability to perform company duties and management, and whether he is mentally and physically capable of judgment, with Chairman Cho responding. After this hearing, Chairman Cho will undergo a physical evaluation at one of the Seoul National University Hospital, National Mental Health Center, or Asan Medical Center, all of which have partnerships with the Seoul Family Court.

Previously, in July last year, Chairman Cho transferred 23.59% of shares to his second son, President Cho Hyun-beom, through off-hours block trading, increasing Cho’s stake in Hankook & Company to 42.90%. Subsequently, Cho Hee-kyung, director of the Hankook Tire Nanum Foundation and eldest daughter, requested a limited guardianship hearing for Chairman Cho, stating that "an objective judgment is necessary to determine whether the decision was made voluntarily and in a sound mental state." The eldest son, Vice Chairman Cho Hyun-sik, also joined the limited guardianship hearing process for their father, marking the intensification of the management rights dispute.

After the limited guardianship petition by Director Cho, Chairman Cho has been reported to commute daily to the Hankook & Company headquarters in Pangyo, Gyeonggi Province, occasionally seen walking around the headquarters. Recently, he has been engaging in exercise such as playing golf with industry associates.

Although Chairman Cho appeared in person at the Seoul Family Court on this day, Director Cho, Vice Chairman Cho, and the second daughter Cho Hee-won, who filed the limited guardianship petition, did not appear in court. President Cho, who opposes the limited guardianship hearing for Chairman Cho, submitted a letter of absence to the court on the 16th.