Statement from Legal Representative on Public Foundation Establishment Report
"Even if Establishment Fails, Foundation Will Be Established with Remaining Assets After Inheritance Tax Payment"
Former Vice Chairman Cho Hyun-moon, the second son of the Hyosung family who announced his intention to donate his entire inherited estate to society, has clarified issues raised regarding the establishment of a public interest foundation.
On the 10th, Cho’s legal representative stated in a briefing, "The misunderstanding that the establishment of a public interest foundation is being pursued to receive inheritance tax reductions is not true," adding, "The foundation is being established solely to achieve the public purpose of socially returning the inherited assets."
Cho’s side asserted, "Even if inheritance assets are donated to the public interest foundation to receive inheritance tax reductions, there is no personal financial gain or benefit."
He emphasized that even if he fails to obtain the consent of co-heirs Cho Hyun-joon, Chairman of Hyosung, and Cho Hyun-sang, Vice Chairman of HS Hyosung, and thus cannot receive inheritance tax reductions, the foundation will be established as planned.
Cho’s side added, "However, we hope that if the inheritance tax is reduced, a larger scale of inherited assets will be utilized for the establishment of the public interest foundation."
They also noted that if the obligation to pay inheritance tax disappears due to the establishment of the public interest foundation, it aligns with the will of their late father, the late Honorary Chairman Cho Seok-rae. Chairman Cho requested in his will that all inheritance taxes corresponding to the inheritance shares be paid.
Cho’s side stated, "If the obligation to pay inheritance tax disappears through the establishment of the public interest foundation, it effectively achieves the same result as paying all the inheritance tax," adding, "Naturally, the contents of the late father’s will are fully satisfied."
Furthermore, they clearly stated that there is no intention to intervene in Hyosung’s management rights through the public interest foundation. This was in response to some speculation that voting rights could be exercised by holding listed stocks through the foundation.
Cho’s side explained, "We plan to convert the listed stocks subject to inheritance into cash by appropriate means and donate them to the public interest foundation, or even if the foundation temporarily holds listed stocks due to delays in this process, we will sell them as quickly as possible to convert them into cash," adding, "There is absolutely no possibility of exercising voting rights through the public interest foundation."
Cho’s side emphasized their desire for complete independence from Hyosung.
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