[Column] Sister's Remark: 'The Chairman of Hankook Tire Must Be Alert'

"I think Chairman Cho Hyun-beom should feel more ashamed."

On the 28th, at the Korea & Company regular shareholders' meeting, Cho Hee-won, who met with reporters, said this. Ms. Cho is the second older sister of Cho Hyun-beom, chairman of Korea & Company. At this shareholders' meeting, Cho and Cho Hyun-sik, an advisor and older brother of Chairman Cho Hyun-beom, who were parties to last year's management rights dispute that stirred public attention, attended in person. They unleashed sharp criticism toward their younger brother.

Ms. Cho raised concerns about Chairman Cho's repeated judicial risks and questioned how the vacant positions of inside director and CEO during the trial period would be filled. The company responded that cases such as embezzlement and breach of trust that occurred in subsidiaries were not found in the holding company and that internal controls are being strengthened.

Until Ms. Cho spoke at the meeting, the atmosphere was such that not even the word "owner risk" could be mentioned. Shareholders asked questions about dividends and business, but all avoided direct mention of the "real problem" they considered to be owner risk. However, when Ms. Cho made her final procedural remarks and poured criticism on Chairman Cho, a series of shareholder condemnations followed.

Shareholders criticized Chairman Cho's decision to voluntarily withdraw his reappointment as an inside director of the subsidiary Korea Tire as a mere "cover-up." They pointed out that he only gave up the inside director position at the subsidiary considering judicial risks, but still maintains control over the group as chairman and CEO of the holding company.

After the shareholders' meeting, Ms. Cho said regarding her remarks on last year's management rights acquisition attempt and owner risk, "As a sister, it is regrettable, but strictly speaking, it is a business matter." This leaves open the possibility of future legal inheritance disputes beyond the emotional rift between siblings. Although it is difficult to shake the governance structure since Chairman Cho's side has already secured more than 47% of friendly shares, the discord within the owner family related to inheritance is expected to continue leaking out.

What is the real anxiety of the shareholders? The judicial trial on embezzlement and breach of trust charges against the current group chairman, conflicts within the owner family over inheritance, and the irresponsible remarks of the audit committee chairman that these are only subsidiary issues and the holding company has no problems. Shareholders' minds remain uneasy as they watch this.