[Active Volcano Hanjin Family] Buamjang Who Promised to Build the Cho Joong-hoon Memorial Hall... Now

Will the rift within the Hanjin Group family be sealed as it is? Although a reconciliation atmosphere was created for the greater cause of maintaining management rights, realistic adjustments of interests for peaceful family co-management have not yet been made. Without mutually acceptable give-and-take, the rift can resurface at any time. Everyone knows that if they scatter, they all perish together, but perfectly mending a once-broken plate is no easy task. It is also not easy to distinguish between external allies and enemies. KCGI, Delta Air Lines, and Bando Group continue to buy shares of Hanjin KAL, calculating their moves. They may be on our side now, but they could turn around and reveal their claws at any moment. The National Pension Service and many individual investors watching the situation are weighing which side to take. The third generation of the Hanjin family stands at a turning point on whether they can maintain group control and management rights across three generations. This article examines the process through which they secured control over Hanjin Group, the current situation, future variables, and assesses whether the sibling co-management system can be sustained long-term.

[Asia Economy Reporter Yoo Hyun-seok] In December last year, Cho Won-tae, Chairman of Hanjin Group, visited the home of his mother, Lee Myung-hee, an advisor at Jungseok Enterprise, located in Pyeongchang-dong, Jongno-gu, Seoul. At that time, Chairman Cho had a severe argument with the advisor, during which household items were damaged. The place where Cho and the advisor quarreled was the Pyeongchang-dong residence, where the late Cho Yang-ho, former Chairman of Hanjin Group, had lived since February 2014.

There is another similar location. It is Buamjang, the former residence of the late Cho Jung-hoon, founder of Hanjin Group. In the past, Cho Nam-ho, the second son of the late Cho Jung-hoon and Chairman of Hanjin Heavy Industries Holdings, and Cho Jung-ho, the fourth son and Chairman of Meritz Financial Group, filed lawsuits against the eldest son, the late Cho Yang-ho, concerning Buamjang.

Although the reasons differ, these two places share a commonality: they are spaces where disputes occurred among the second and third generations of the Hanjin family after their father's passing. On the 5th, we visited Buamjang, where disputes took place even before those at the Pyeongchang-dong residence.

Near Buamjang are Seokpajeong, a villa once used by Heungseon Daewongun, and the Seokpajeong Seoul Museum of Art. On Sunday, many couples and families were present. Unlike the bustling museum area, the path to Buamjang was quiet and desolate. Only the massive gate of Buamjang welcomed visitors on the way up.

Passing through the gate, we walked around along the wall. The wall was taller than a person, completely blocking any view inside. Only withered vines and fallen leaves, dried by winter, hung over the wall. After circling around, we stood again before the firmly closed gate. A crack was visible in the old, worn gate. Through the gap, we caught a glimpse of Buamjang’s interior. It was neatly maintained. There were no common fallen leaves on the ground, suggesting the presence of a caretaker. Otherwise, it retained the appearance of an old traditional Korean house.

Buamjang is a 2,000-pyeong (approximately 6,600 square meters) hanok that the late Cho Jung-hoon used as a private residence and guesthouse. It was also the site of lawsuits among the second generation of the Hanjin family. Shortly after Cho Jung-hoon's death in late 2002, Cho Nam-ho, Chairman of Hanjin Heavy Industries Holdings, and Cho Jung-ho, Chairman of Meritz Financial Group, agreed to build a memorial hall at Buamjang. However, the late Cho Yang-ho filed a lawsuit in early 2008 demanding damages and transfer of shares, claiming the agreement was not honored. The lawsuit was eventually settled in 2011 when the court recommended reconciliation. Although 18 years have passed since the agreement to build the memorial hall and 9 years since accepting the court's reconciliation recommendation, Buamjang remains a quiet hanok without any sign of a memorial hall. At that time, Hanjin Group was known to have agreed to build a memorial hall at Buamjang at a specific point.

Currently, Buamjang is owned by Jungseok Enterprise. Jungseok Enterprise is an unlisted company responsible for real estate sales, leasing, and building management within Hanjin Group. Advisor Lee Myung-hee holds 6.87% of its shares, while Cho Hyun-ah, Cho Won-tae, and Cho Hyun-min each hold 4.59%. As of 2018, it had assets worth 261.9 billion KRW and liabilities of 45.9 billion KRW. Due to the high value of its real estate holdings, Jungseok Enterprise is considered a valuable asset within the group. This has led to speculation that Jungseok Enterprise could be utilized to pay inheritance taxes for the third generation of the Hanjin family.

On the way down from Buamjang, we stopped by a nearby repair shop and asked about Buamjang. The person said, "I understand there is a caretaker," and added, "After the chairman passed away, it seems company people occasionally come and go." It was hard to shake the impression that the founder's birthplace of Hanjin Group was being left desolately unattended.

Meanwhile, the Pyeongchang-dong residence of the late Cho Yang-ho is reportedly fully inherited by his wife, Advisor Lee Myung-hee. The Pyeongchang-dong residence is a building with three basement floors and two above-ground floors, newly built under joint ownership by the late Cho and the advisor.

This content was produced with the assistance of AI translation services.