Korea & Company "Jo Hee-kyung, Blind to Money, Betraying Family Bonds with Words and Actions"

On the 20th, Hankook & Company refuted the claims made by Cho Hee-kyung, Chairwoman of the Korea Tire Sharing Foundation, stating that "there is no issue with Chairman Cho Hyun-bum's management capabilities." The company also strongly criticized Chairwoman Cho, saying, "It is a statement blinded by money that betrays familial bonds to indiscriminately criticize even the elder family member (Hyosung) who desires to defend management rights and ensure business stability."

On the same day, Hankook & Company stated in a press release, "Honorary Chairman Cho Yang-rae has tested Chairman Cho Hyun-bum's management abilities for decades and had already designated him as the largest shareholder," adding, "It is absurd to claim there is a problem with management capabilities when Hankook & Company and Hankook Tire & Technology have recently achieved record-breaking performance."

The headquarters of Hankook Tire & Technology located in Pangyo, Seongnam-si, Gyeonggi-do
[Photo by Hankook Tire & Technology]

The day before, Chairwoman Cho, the eldest daughter of Honorary Chairman Cho, criticized her younger brother, Chairman Cho, saying, "A manager without morality is damaging the company's value." In response, Hankook & Company countered that Chairwoman Cho has privatized two foundations, the Korea Tire Sharing Foundation and Together Walking Children.

Hankook & Company stated, "Honorary Chairman Cho and the company have consistently donated over 2 billion won annually to the foundations, but Cho Hee-kyung has provided almost no financial support to the foundations over the past five years," and claimed, "After being refused a request for management rights in 2020, she has been threatening her healthy father by filing a limited guardianship commencement petition as a weapon."

Regarding the purchase of Hankook & Company shares by Hyosung Advanced Materials, which is considered an ally of Chairman Cho, the company dismissed any major issues. Hankook & Company said, "Professional lawyers in the IB industry have stated that there is absolutely no problem, as it is for the purpose of maintaining a stable business relationship."

Finally, Hankook & Company urged investors to invest cautiously. The company pointed out, "MBK has set a condition that if the minimum quantity is not met, they will not purchase even a single share," and added, "The fact that the stock price does not reach the public tender offer price reflects the market sentiment that does not trust MBK's public tender offer."