The Second Daughter Also Submits Opinion Statement... Korea Tire Ownership Dispute Enters Turbulent Waters

[Asia Economy Reporter Kiho Sung] Cho Hyun-sik, Vice Chairman of Hankook Technology Group (formerly Hankook Tire Worldwide), submitted a statement of opinion as an interested party in the adult guardianship application trial concerning his father, Chairman Cho Yang-rae. It has been confirmed that the second daughter, Cho Hee-won, also submitted her opinion to the court. With both siblings submitting their respective opinions to the court, the management dispute within the Hankook Tire family appears to be heading into turbulent waters.

According to the legal community on the 6th, the second daughter Cho submitted her opinion to the Seoul Family Court on the 5th as an interested party. Vice Chairman Cho also submitted his opinion on the same day in the capacity of an interested party. Since an interested party holds the same status as the petitioner, this indicates that Vice Chairman Cho intends to actively participate in the adult guardianship trial concerning Chairman Cho. Additionally, it is reported that Vice Chairman Cho has appointed a new legal representative for this trial.

However, the exact stance of the second daughter Cho has not been confirmed. Industry insiders have speculated that she has joined the dispute after reportedly sending a certified letter demanding explanations of withdrawal details from accounts in her name to Chairman Cho and President Cho Hyun-bum. Depending on the opinion expressed by the second daughter, the structure of the management dispute is expected to become clearer.

As the children submit their opinions on Chairman Cho’s adult guardianship trial, the Hankook Tire management dispute is expected to prolong further. The key issue in the adult guardianship application is whether Chairman Cho transferred his holding company shares to President Cho voluntarily while in a healthy state. If the application is accepted, all shares will revert to their original status. In this case, a shareholding battle among the siblings will ensue, leading to a prolonged conflict.

Moreover, the adult guardianship trial itself is unlikely to conclude quickly. Currently, the court has gathered the children’s opinions and issued an order for a family investigation. The family investigation order involves the court examining the necessity of adult guardianship, which typically takes four to five months. Therefore, it is difficult to schedule a trial date within this year. In the case of the late Shin Kyuk-ho, Honorary Chairman of Lotte Group, the Supreme Court’s final ruling took about one year and six months.

There is another variable. President Cho is currently on trial for allegations including receiving bribes from partner companies. While he was sentenced to a suspended prison term in the first trial, the prosecution requested a four-year prison sentence at the appellate trial’s final hearing. If the first trial’s verdict and the second trial’s sentence are confirmed as is, it is expected to restrict President Cho’s participation in management, which could negatively affect the management dispute.

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