Hyosung, to Cho Hyun-moon saying "Let's end brotherly conflict," responds "Must have sincerity, not just words"

"Considering Fundamental and Practical Measures to Achieve Family Peace and Harmony"

Hyosung Group stated that former Vice Chairman Cho Hyun-moon, the second son of the Hyosung family, should demonstrate sincerity regarding his expressed willingness to end the sibling conflict and reconcile.

On the 5th, following Cho’s press conference, Hyosung Group said, "We consider it fortunate that he has now expressed his intention to honor his father’s last wishes." They added, "It seems the family is contemplating fundamental and practical measures to achieve peace and harmony among family members with genuine sincerity, not just words."

Former Hyosung Vice President Cho Hyun-moon is speaking at a press conference on inheritance held on the morning of the 5th at Sparkplus COEX branch in Gangnam-gu, Seoul.
[Photo by Joint Press Corps]

At a press conference held at SparkPlus COEX branch in Gangnam-gu, Seoul, Cho Hyun-moon announced ▲ full donation of inherited assets to society ▲ request to purchase shares of unlisted affiliates for separation of business units ▲ request to stop distortion of facts related to ongoing lawsuits filed by Hyosung.

He stated, "I want to end the conflict among siblings and reconcile." Cho expressed regret, saying, "If there have been difficulties experienced by my siblings and family because of me, I am sorry." He also said, "The accusations in the case I am currently on trial for are wrong in terms of motive, procedure, and content." He continued, "There has been much distortion of the truth related to this, and such wrongful actions must cease."

In 2014, Cho filed complaints against his elder brother, Hyosung Group Chairman Cho Hyun-joon, and key executives on charges including embezzlement and breach of trust. In response, in 2017, Chairman Cho Hyun-joon countersued, alleging threats. This conflict is known as the "Sibling War."

Cho also stated, "I will not claim any ownership of the inherited assets and will establish a public interest foundation to donate them." He added, "I believe the other co-heirs will cooperate in establishing the public interest foundation."

When asked why cooperation from co-heirs is necessary for establishing the public interest foundation, he explained, "Donating inherited assets to a public interest foundation allows for inheritance tax reduction benefits, enabling a larger donation amount. For this, legal consent from co-heirs is required." The foundation’s name is "Danbit Foundation," meaning "morning sunlight." Cho said, "We are still considering which fields the foundation will focus on."

Former Hyosung Vice President Cho Hyun-moon is attending a press conference on inheritance-related statements held on the morning of the 5th at Sparkplus COEX branch in Gangnam-gu, Seoul.
[Photo by Joint Press Corps]

He also said, "What I want is 100% freedom from Hyosung," and added, "I hope my siblings and Hyosung will cooperate with my business separation and the essential share arrangement for it."

At the same event, Cho’s legal representative, Kim Jae-ho, lead attorney at Barun Law LLC, explained, "This is not about asking for the company itself," and said, "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, he is requesting cooperation from his siblings."

Under the Fair Trade Act, for a large business group to separate affiliated family companies, 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 of real estate holding companies Shindongjin and Trinity Asset Management. All are unlisted companies.

Former Hyosung Vice President Cho Hyun-moon is greeting after finishing a press conference on inheritance held on the morning of the 5th at Sparkplus COEX branch in Gangnam-gu, Seoul.
[Photo by Joint Press Corps]