"Protect Brotherhood Bonds" Will
Likely to Leave Inheritance Above Statutory Share
No Major Impact on Group Management Rights
"The bond between parents and siblings is a heavenly duty (天倫). An elder brother is an elder brother, and a younger brother is a younger brother. No matter what happens, please maintain the brotherly affection."
With the will of the late Honorary Chairman Jo Seok-rae of Hyosung Group, who passed away last March, being revealed, attention is focused on the second son, former Vice President Jo Hyun-moon. This is because the father left a will instructing to leave an inheritance exceeding the statutory reserved portion, eliminating the grounds for filing a reserved portion claim lawsuit.
According to the business community on the 16th, Honorary Chairman Jo wrote his will last year in the presence of a lawyer. He urged reconciliation among siblings and left a will instructing to leave an inheritance exceeding the statutory reserved portion to former Vice President Jo.
In his will, Honorary Chairman Jo said, "The bond between parents and siblings is a heavenly duty," and "An elder brother is an elder brother, and a younger brother is a younger brother. No matter what happens, please maintain the brotherly affection." It is reported that the fact of the will's creation was notified to the heirs, including the eldest son, Chairman Jo Hyun-joon of Hyosung Group, and former Vice President Jo, after his passing.
A business community official said, "Even though there was concern that the second son might file an inheritance dispute after severing ties with the family, wouldn't this show a father's love embracing the second son?" and added, "In honoring the father's great will, he would have no choice but to refrain from actions that cause family conflicts."
If Honorary Chairman Jo had not mentioned the second son's share in the will, former Vice President Jo could have demanded half of the legally inherited property through a reserved portion claim lawsuit.
Before the will was revealed, it was reported that former Vice President Jo's side was preparing a large-scale reserved portion claim lawsuit by contacting lawyers from major law firms, and the business community predicted that he would soon file a lawsuit.
The shares of Hyosung Group affiliates held by Honorary Chairman Jo are estimated to be approximately 10.14% in Hyosung Co., Ltd., 10.55% in Hyosung Heavy Industries, 10.32% in Hyosung Advanced Materials, and 9.09% in Hyosung TNC, with the total share value estimated to exceed 700 billion KRW.
If the legal inheritance takes place, former Vice President Jo's share is estimated to be about 150 billion KRW worth of group and affiliate stocks. According to the legal inheritance ratio, his wife Song Gwang-ja and three sons will inherit shares in a 1.5:1:1:1 ratio. In the case of Hyosung Co., Ltd., Mrs. Song is expected to receive 3.38%, and the three brothers will divide 2.25% each.
Since July 2014, former Vice President Jo has sparked a "brotherly conflict" by filing complaints and accusations against Chairman Jo, his elder brother and the eldest son of Honorary Chairman Jo, and key executives on charges of embezzlement and breach of trust. In response, Chairman Jo's side counter-sued in 2017, claiming that former Vice President Jo threatened them by saying, "If you do not purchase unlisted stocks at a high price, I will hand over materials containing illegal acts to the prosecution."
Former Vice President Jo was indicted without detention in November 2022 on charges of attempted coercion, and the trial is currently ongoing.
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