Chairman Cho Yang-rae's Limited Guardianship Trial Drifts for 1 Year and 3 Months... 2nd Hearing Scheduled This Week

Three Hospitals Consecutively Refuse Chairman Cho's Psychiatric Evaluation
Court to Hold Hearing and Discuss Future Procedures

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] The management dispute controversy that arose after the petition for limited guardianship of Cho Yang-rae, chairman of Korea & Company, has been drifting for 1 year and 3 months.

The procedure has not progressed because hospitals commissioned to conduct psychiatric evaluations on Chairman Cho, which are central to the decision on whether to initiate limited guardianship, have refused due to reasons such as preventing the spread of COVID-19. Accordingly, the court plans to hold a limited guardianship trial for Chairman Cho this week to discuss future procedures.

According to the legal community on the 10th, the Family Court Division 50 of Seoul Family Court (Chief Judge Kwang-woo Lee) will hold the second hearing for the petition to initiate limited guardianship of Chairman Cho on the 13th. This is about six months after the first hearing on April 21.

Limited guardianship is one of the legal guardianship systems where the person, spouse, or relatives within the fourth degree can request guardianship from the court. The court designates limited guardianship if, through medical evaluation and statements, it judges that the respondent lacks the mental capacity to handle affairs.

The court has sent summonses to Chairman Cho, the parties involved, and the participants who are his children, but they are unlikely to attend in person, and representatives are expected to appear. Cho Hyun-beom, the second son and a party involved in this case as president of Korea & Company, submitted a letter of absence on the 8th.

Usually, a hearing is held after the psychiatric evaluation results are obtained, but since the hospitals commissioned for the evaluation have repeatedly refused, the legal community expects the court to discuss future procedures such as hospital designation again.

Previously, the National Center for Mental Health refused, stating that it was designated as a COVID-19 dedicated hospital and inpatient treatment was impossible. Because of this, the court commissioned the psychiatric evaluation to Sinchon Severance Hospital, but Sinchon Severance Hospital also returned the commission letter, citing difficulty in inpatient evaluation due to the ongoing spread of COVID-19.

Subsequently, the court sent a psychiatric evaluation commission letter to Ajou University Hospital, but Ajou University Hospital returned it, citing insufficient medical records of Chairman Cho.

This case began in July last year when the eldest daughter, Director Cho Hee-kyung, filed a petition for limited guardianship against Chairman Cho.

Director Cho believes that the court’s judgment is necessary to determine whether Chairman Cho’s sale of shares to his second son, Cho Hyun-beom, president of Korea & Company, through an after-hours block sale was a voluntary decision.

If the petition is accepted, a civil lawsuit may be filed to cancel the share sale. However, if the petition is dismissed, it is expected to be difficult to challenge the shares sold to President Cho Hyun-beom.

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