[Exclusive] "Remove 'Hanta' Name from Foundation"…Korea & Company Demands Jo Hee-kyung Side

Hankook Tire Prohibits Use of Company Name by Chairman's Sister-Run Foundation
"Foundation and Company Are Unrelated... No Future Sponsorship"
Foundation Activities Also Promoted in ESG Report

[Image source=Yonhap News]

It has been confirmed that Korea Tire & Technology, led by Chairman Cho Hyun-beom, has requested the Korea Tire Sharing Foundation, operated by Chairman Cho Hee-kyung, the chairman's elder sister, to remove the name "Korea Tire." Although Chairman Cho won the management rights dispute with his siblings, the conflict appears to be deepening.

According to industry sources on the 29th, Korea & Company and its business entity Korea Tire & Technology recently sent a certified letter through Kim & Chang Law Firm to the Korea Tire Sharing Foundation, demanding the immediate cessation of the use of the "Korea Tire" name. The reason cited was that since 2021, they have neither collaborated on social contribution activities with the foundation nor provided sponsorship funds. Furthermore, since there are no plans to collaborate on social contribution activities or provide sponsorship funds in the future, they stated that continued use of the Korea Tire name could be considered unauthorized trademark infringement.

The Korea Tire Sharing Foundation is a social contribution foundation established in 1990 with the purpose of returning the wealth accumulated by Cho Yang-rae, honorary chairman of Korea & Company Group (formerly Korea Tire), to society. The eldest daughter, Cho Hee-kyung, has served as the chairperson and managed the foundation. After Chairperson Cho filed a petition for adult guardianship against Honorary Chairman Cho Yang-rae, support funds of 1.5 to 2 billion KRW annually, which had been provided to the Korea Tire Sharing Foundation since 2022, were cut off.

Chairperson Cho Hee-kyung's side stated, "While publicly expressing a desire to reconcile with the siblings, it is absurd to prohibit the use of the company name in a foundation that embodies Honorary Chairman Cho's principles," and criticized, "They claim the foundation is unrelated to Korea Tire, yet they highlight the foundation's achievements in the company's ESG (Environmental, Social, and Governance) report, which reflects sustainable management performance. This behavior is contradictory."

The latest edition (2022?2023) of the ESG report, published by Korea Tire for the 14th consecutive year, records the activities of the Korea Tire Sharing Foundation as achievements. It introduces activities supporting nine local organizations in 2022, even after the cessation of funding. A Korea Tire official explained, "Nothing has been decided yet regarding the establishment of a new foundation."

Separately, Korea Tire recently filed a provisional seizure lawsuit at the Seoul Western District Court against real estate owned by Cho Hyun-sik, the eldest son of Honorary Chairman Cho Yang-rae and former advisor to Korea Tire. The provisional seizure target is Nine One Hannam in Yongsan-gu, Seoul, jointly owned by Cho Hyun-sik and his wife. A company official said, "It is true that the provisional seizure application was made due to a debt of 500 million KRW," but added, "We cannot disclose the background."