President Jo Hyun-beom summoned for National Assembly audit... Attention on whether he will show a responsible attitude

President Cho Hyun-beom giving a presentation at the Korea Tire Technodome completion ceremony

[Asia Economy Reporter Kiho Sung] Cho Hyun-bum, CEO of Hankook Tire & Technology who is undergoing a management rights dispute, will appear at the National Assembly's National Assembly Committee on Economy and Finance audit on the 22nd. CEO Cho is expected to respond to questions related to unfair subcontracting transactions. The industry is paying attention to whether CEO Cho can dispel the recent controversy over management rights and demonstrate a responsible attitude through his response at the audit.

According to the industry and political circles on the 11th, the National Assembly Committee on Economy and Finance selected CEO Cho as a witness for the Fair Trade Commission's comprehensive audit scheduled for the 22nd. Previously, Kim Hee-gon, a member of the People Power Party, had requested CEO Cho as a witness regarding the alleged power abuse by the affiliate Korea AtlasBX. In addition, Ji Sung-han, chairman of Hansung Industrial (Hansung Intech), will also attend the audit as a reference witness along with CEO Cho.

The power abuse controversy involving AtlasBX began to attract attention when Hansung Intech, unable to endure repeated deficits, closed its factory in 2018. Hansung Intech claims that AtlasBX froze delivery prices for ten years and did not fulfill the promised supply volumes.

Hansung Intech entered the industrial battery parts business at the recommendation of AtlasBX but suffered greater losses. They also express grievance that a new investment started with a promise to supply automotive battery parts ended with the factory closure due to frozen price increases and failure to increase supply volumes. In this regard, a complaint has also been filed with the Fair Trade Commission. Chairman Ji is also the father of Ji Sang-wook, former member of the Future United Party (predecessor of the People Power Party) and current head of the Yeouido Institute.

Various opinions are circulating regarding CEO Cho's witness appearance. Although no final decision has been made, it is highly likely that CEO Cho will attend the audit. Being summoned to testify at the audit is burdensome, but it can solidify his position as the 'successor.' Kim's office has also stated that they applied for CEO Cho as a witness because they consider him the de facto top executive of the group.

On the other hand, there are criticisms that CEO Cho's attendance at the audit itself is a negative factor. It is a significant burden to have to appear in an official setting while public attention is focused on the management rights dispute.

An industry insider said, "Considering CEO Cho's position so far, it is difficult to see him as directly responsible for Hansung Intech," adding, "Rather, from the perspective of a new manager, it could be an opportunity to dispel doubts about management ability and morality and to show a responsible attitude."

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