Chairman Cho Yang-rae: "Stock Sale Not a Sudden Decision... I Am Staying Healthy" (Comprehensive)

Cho Yang-rae, Chairman of Korea Technology Group

[Asia Economy Reporter Kiho Sung] Cho Yang-rae, chairman of Korea Technology Group (formerly Korea Tire Worldwide), clearly drew the line regarding the controversy over the management rights dispute among his children, stating, "The decision to transfer all shares to President Cho Hyun-beom was not made suddenly." He also expressed his stance to his eldest daughter, Cho Hee-kyung, chairwoman of the Korea Tire Sharing Foundation, who requested the appointment of a guardian for his adult affairs at the court, saying, "If it is about a desire for management rights, I have never once thought of giving management rights to my daughter."

On the 31st, Chairman Cho issued a statement through the company, saying, "Upon hearing the news that my eldest daughter recently filed a petition for the commencement of adult guardianship, I feel truly ashamed and concerned that this appears as a family conflict," and added, "Since this has become a social issue causing confusion among shareholders and unrest among employees, I have issued this statement to manage the situation."

Chairwoman Cho had filed a 'petition for commencement of adult guardianship' at the Seoul Family Court the day before and stated in her statement, "I filed the petition because an objective judgment is needed to determine whether Chairman Cho is in a healthy state and capable of voluntary decision-making," and "Through an objective judgment, I hope to protect the chairman's usual beliefs and prevent potential problems for the family or the company."

The adult guardianship system is a system that appoints a guardian for adults who continuously lack the capacity to manage affairs due to mental limitations such as illness, disability, or old age. The ward can receive protection and support from the guardian for property management and matters difficult to decide on their own in daily life.

Regarding this, Chairman Cho said he called Chairwoman Cho on the 30th but she did not answer, adding, "I felt that our relationship has somewhat cooled due to the recent stock sale," and said, "I really do not understand why my beloved eldest daughter is doing this, and I want to ask if she is really okay."

He also emphasized that there is absolutely nothing wrong with his health. He said, "I enjoy playing golf with friends every week, receive personal training on days without golf, and walk more than 4 to 5 km daily," and added, "I believe I am living very healthily for my age."

Regarding the background of selling shares to his second son, he said, "I have practically entrusted management to President Cho Hyun-beom for about 15 years, and during that time, he has produced good results and contributed greatly to the company's growth. After sufficient verification, I had already designated him as the largest shareholder," and added, "To prevent further confusion over the largest shareholder position among family members in recent months, I sold all shares to President Cho Hyun-beom as I had planned in advance. I want to reiterate that this was not a sudden decision."

Regarding the issue of his eldest daughter, Chairman Cho said, "If it is about a desire for management rights, I have never once thought of giving management rights to my daughter," and drew the line by saying, "If it is about money, I believe I have already given enough money to all my children, including my eldest daughter, so that they can live comfortably. If she has intentions for the foundation, she can use the money she has already received as a gift."

Earlier, Chairman Cho sold all of his 23.59% stake in Korea Technology Group to his second son, President Cho, through a block deal (large-scale trading outside regular hours). Combining his existing shares with his father's shares, President Cho now holds 42.9%, becoming the largest shareholder. In this regard, there were significant concerns in the business community about the possibility of a dispute over management rights between siblings. The company quickly tried to calm the situation by stating, "There will be no change to the existing sibling management system," but Chairwoman Cho opposed her father's decision.

Meanwhile, Cho Hyun-sik, the eldest son of Chairman Cho, expressed through a representative the day before that "As a family member and a major shareholder of the group, I am considering the issue of Chairman Cho Yang-rae's adult guardianship application."

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