"Protect Brotherly Love" Yoo Ji's Will Included
Interest in Whether Former Vice President Cho Hyun-moon Will File a Claim for Return of Reserved Portion
Constitutional Incompatibility Decision on Reserved Portion Clause... Attention on Retroactive Scope of Revised Civil Law
It was reported on the 15th that the late Jo Seok-rae, Honorary Chairman of the Hyosung Group who passed away last March, left a will that included bequeathing assets exceeding the statutory reserved portion to his second son, former Vice President Jo Hyun-moon of Hyosung Group.
According to the Legal Times on the same day, before his death last year, Honorary Chairman Jo drafted such a will in the presence of lawyers from a major law firm. After drafting the will, Jo completed legal reviews and notarization, fulfilling the legal requirements for the will to be effective.
On the 2nd of last month, employees and executives are seen paying their respects with a moment of silence after offering flowers at the funeral ceremony of the late Cho Seok-rae, Honorary Chairman of the Hyosung Group.
The will left by Honorary Chairman Jo contained a testament urging reconciliation among family members and siblings, and bequeathed assets exceeding the statutory reserved portion, including shares of major Hyosung Group affiliates he held, to former Vice President Jo, who has been estranged since the so-called "brothers' conflict." According to Article 1112 of the Civil Act, the statutory reserved portion for direct descendants of the deceased is recognized as half of their legal inheritance share.
Additionally, in the will, Honorary Chairman Jo reportedly urged, "The bond between parents and siblings is a heavenly duty," and said, "An elder brother is an elder brother, and a younger brother is a younger brother. Regardless of what happens, please maintain brotherly affection." This testament was a plea to the three children, including Chairman Jo Hyun-joon of Hyosung Group and former Vice President Jo, who have continued the "brothers' conflict" for over ten years through lawsuits and accusations, to refrain from further sibling disputes.
The fact of the will's drafting and its specific contents were reportedly communicated to Chairman Jo and former Vice President Jo, as well as other heirs, through lawyers after Honorary Chairman Jo's death.
Former Vice President Jo, who in July 2014 initiated the "brothers' conflict" by accusing his elder brother Chairman Jo of embezzlement and breach of trust, is currently on trial for attempted coercion. At the eighth hearing held on the 13th, the second witness examination of Jo Hyun-sang, Vice Chairman of Hyosung and younger brother of former Vice President Jo, took place.
Recently, there have been speculations in the business and legal communities that former Vice President Jo's side has been preparing a large-scale lawsuit to claim a substantial reserved portion by consulting lawyers from a major law firm.
In particular, on the 25th of last month, the Constitutional Court ruled in a constitutional review case on the reserved portion provisions of the Civil Act that the failure to separately specify grounds for loss of reserved portion for children who committed filial impiety was unconstitutional, issuing a decision of constitutional inconsistency. It is analyzed that if a legislative amendment reflecting the intent of the Constitutional Court's decision is made, it could be disadvantageous to former Vice President Jo.
At that time, the Constitutional Court pointed out, "Although the disqualification grounds for heirs stipulated in Article 1004 of the Civil Act do not apply, recognizing the reserved portion of an heir who has committed acts of filial impiety such as long-term abandonment or mental and physical abuse of the decedent contradicts the general public's sense of justice and common sense," and added, "Therefore, the failure to separately stipulate grounds for loss of reserved portion in Article 1112 of the Civil Act is unreasonable."
Accordingly, the Constitutional Court issued a decision of constitutional inconsistency with a legislative deadline of December 31, 2025, regarding items 1 to 3 of Article 1112 of the Civil Act, which guarantee half of the legal inheritance share to the decedent's direct descendants and spouse, and one-third to direct ascendants.
To prevent the reserved portion system itself from losing effect, the Constitutional Court decided to temporarily maintain the legal effect until the law is amended. However, it is widely expected that the Civil Act will be amended through legislation to deprive or restrict the reserved portion rights of children who commit filial impiety against their parents.
The Hyosung side regards former Vice President Jo as having committed filial impiety against his parents. Therefore, if former Vice President Jo does not abide by Honorary Chairman Jo's testament and files a lawsuit to claim the return of the reserved portion, the application of the amended Civil Act following the Constitutional Court's decision could become an issue.
In that case, it will first be necessary to determine whether former Vice President Jo can be recognized as having committed acts of filial impiety as stipulated in the amended Civil Act. If such facts are recognized by the court, a key issue will be the retroactive application of the amended law as stipulated in the supplementary provisions of the amendment?specifically, whether the retroactive application should be based on the time of Honorary Chairman Jo's death, the time when former Vice President Jo filed the reserved portion return lawsuit against other heirs, or the time when the court delivers its judgment after trial.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
