Hyosung Family's Cho Hyun-moon: "I Will Donate All Inherited Assets to Society... Please Let Me Leave the Group"

Expression of Intent to End Sibling Conflict and Reconcile

After a long-standing conflict with his father and elder brother, Cho Hyun-moon, the second son of the Hyosung family and former Vice Chairman of Hyosung, announced on the 5th that he will donate his entire inherited estate to society.

On the same day, Cho held a press conference at SparkPlus COEX branch in Gangnam-gu, Seoul, stating, “I will not keep a single penny of the inherited estate for myself but will establish a public interest foundation and donate the entire amount.” He added, “I want to set a precedent by not being greedy about the inheritance and donating all of it to the foundation to be used for the country and society.”

Former Hyosung Vice President Cho Hyun-moon, the second son of the Hyosung family who severed ties with his family due to the "Brotherly Conflict," held a press conference on the 5th at the seminar room of SparkPlus COEX branch in Gangnam-gu, Seoul, to express his position on inheritance matters. Photo by Jo Yong-jun jun21@

"Consent of co-heirs is necessary to establish the public interest foundation"

Cho said, “I believe the other co-heirs will cooperate in establishing the public interest foundation.” When asked why the cooperation of co-heirs is necessary for establishing the foundation, he explained, “If the inherited estate is donated to a public interest foundation, there are inheritance tax reduction benefits, allowing a larger amount to be donated. For this, legal consent from co-heirs is required.”

Earlier in March, the late Cho Seok-rae, Honorary Chairman of Hyosung Group, left a will urging reconciliation among his three sons, emphasizing that “the bond between parents and siblings is a heavenly duty (천륜, Cheonryun).” It is reported that he decided to leave Cho an inheritance exceeding the statutory minimum reserved portion for heirs.

Since 2014, Cho had been involved in a 'brotherly feud' after filing complaints against his elder brother Cho Hyun-joon, Chairman of Hyosung Group, and key executives on charges including embezzlement and breach of trust, eventually severing all ties with Hyosung. On March 30, he visited his father’s funeral home, paid respects for five minutes, and left without being listed among the chief mourners.

On this day, Cho said, “I intend to honor my late father’s wishes by ending the conflict among brothers and seeking reconciliation,” adding, “I will not raise issues about the various injustices I have faced so far and will forgive.”

Hyosung family’s second son, Cho Hyun-moon, former Vice President of Hyosung, is greeting before the press conference held on the 5th at the seminar room of Sparkplus COEX branch in Gangnam-gu, Seoul. Photo by Jo Yong-jun jun21@

"I want a complete separation from Hyosung"... Request to purchase shares of unlisted companies

Kim Jae-ho, legal representative of former Hyosung Vice President Cho Hyun-moon and CEO of Barun Law Firm, is speaking at a press conference regarding the inheritance of former Vice President Cho, held on the morning of the 5th at the seminar room of Sparkplus COEX branch in Gangnam-gu, Seoul.
[Photo by Choi Seo-yoon]

He also said, “My greatest hope is to be 100% free from Hyosung,” and “I hope my brothers and Hyosung will cooperate in the essential share arrangement for my separation from the group.” He continued, “I have no interest whatsoever in Hyosung’s management rights,” and added, “It is completely unrelated to my true intentions to describe my raising of issues about Hyosung’s illegal misconduct as a management rights dispute, so I hope such misunderstandings will not be repeated.”

He further stated, “Since Chairman Cho Hyun-joon and Vice Chairman Cho Hyun-sang are also proceeding with their own separations from the group, I believe that the three brothers managing independently is my late father’s will, and I trust that the other co-heirs have no reason to oppose this.”

The separation Cho mentioned refers to the disposal of shares in unlisted affiliates within Hyosung Group. Since selling shares of unlisted companies is not easy, he is asking his brothers to purchase them directly. Kim Jae-ho, the lead attorney from Barun Law Firm who was present at the press conference, explained, “This is not about asking for the company itself,” and “Cho must dispose of his shares in accordance with the Fair Trade Act.” He added, “There are several unlisted corporations in which Cho holds shares, and since these shares are not generally traded like those of listed companies, cooperation from his brothers is being requested.”

Under the Fair Trade Act, for a large business group to separate ‘family affiliates,’ the shareholding must be reduced to less than 3% for listed companies and less than 10% for unlisted companies. Cho holds 80% of Dongryung Industrial, 20% of Hyosung Toyota, 14.13% of Hyosung TNS, and 3.48% of The Class Hyosung. He also holds 10% each in real estate holding companies Shindongjin and Trinity Asset Management. All are unlisted companies.

The second son of the Hyosung family, Cho Hyun-moon, who severed ties with his family due to the "Brotherly Conflict," is entering the seminar room at Sparkplus COEX branch in Gangnam-gu, Seoul, during a press conference held on the 5th. Photo by Jo Yong-jun jun21@

Cho explained that he has already conveyed his decision and requests announced at the press conference to his two brothers. He said, “There has been no official response for almost a month,” and added, “If my brothers and Hyosung reject my sincere requests or fail to provide a clear answer while only delaying, I will have no choice but to pursue my path, including exercising all my legal rights.”

The exact scale of Cho’s inherited estate has not yet been determined. He said, “Regarding the will said to have been written by my late father, the acquisition route, format, and content are unclear and difficult to accept,” and “Although I have asked the executor of the will several times and received answers, there are still unclear parts, so I find it difficult to accept the contents of the will.” He also claimed, “Recent media reports suggesting that the execution of the will has already been completed are not true.”