Korea Tire Management Dispute: 'Alliance' or 'Every Man for Himself'?

The Situation May Change Depending on the Contents of the Opinion Statement to Be Submitted to the Court on the 5th

[Asia Economy Reporter Sung Ki-ho] Ahead of the adult guardianship trial of Cho Yang-rae, chairman of Korea Technology Group (formerly Hankook Tire Worldwide), his second daughter Cho Heewon, who had declared neutrality, appears to be joining the management rights dispute. As a result, a structure of Cho Hyun-bum, president of Korea Technology Group, versus the other three siblings (Cho Hyun-sik, Cho Heekyung, and Cho Heewon) is being formed, but since the three siblings have differing positions, there are indications that the situation could change depending on the responses to the opinion submission requested by the court.

According to the tire industry on the 4th, the second daughter Cho Heewon recently sent a certified letter through a law firm asking Chairman Cho and President Cho to explain the withdrawal details from an account in her name. Unlike her initial declaration of neutrality during the early controversy over the adult guardianship trial of Chairman Cho, she has now taken concrete action.

However, industry insiders point out that the second daughter’s issue is different in nature from the adult guardianship trial being pursued by the eldest daughter. An industry official said, "In the case of the second daughter, she is asking for an explanation of withdrawal details from her own account," adding, "Since this is not an expression of opinion on the adult guardianship trial, what the two children are asserting are different in nature."

Moreover, there are speculations that the eldest son, Vice Chairman Cho Hyun-sik, may have a different view. The eldest daughter, Cho Heekyung, director of the Hankook Tire Nanum Foundation, cites Chairman Cho’s emphasis on social contribution as the reason for filing the adult guardianship trial, but Vice Chairman Cho did not mention social contribution in his statement. Ultimately, Director Cho emphasizes 'social contribution,' Vice Chairman Cho focuses on 'management rights,' and the second daughter Cho Heewon stresses 'property division,' showing subtle differences in their respective claims.

Additionally, Vice Chairman Cho has so far maintained his status as an 'interested party' in Chairman Cho’s adult guardianship trial and has not shown an active stance in the trial. Earlier, the Family Division 20 of the Seoul Family Court, which is hearing the petition for limited guardianship of Chairman Cho, registered the other three children as interested parties except for the petitioner, Director Cho, and sent each of them a request for submission of opinions regarding the commencement of the trial on the 11th.

The opinion submission must be submitted within 14 days from the date the request is received. Although it is not mandatory, most family members tend to submit opinion statements. In this process, they can choose whether to be a 'participant' or an 'interested party.' A participant participates in the adult guardianship trial on equal footing with the petitioner, while an interested party maintains a more withdrawn position, only confirming the results.

The key issue is the content of the opinion statement on the adult guardianship trial, which must be submitted by the 5th. An industry insider said, "Except for President Cho Hyun-bum, the other siblings may express active opinions in favor of starting the trial, but since Chairman Cho initially dismissed concerns about his health, there is a possibility that the adult guardianship petition could be dismissed," adding, "In that case, the children who actively expressed opinions in favor of starting the trial will inevitably be at a disadvantage in the future."

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