Former Taekwang Chairman Lee Hojin Wins Lawsuit Against Sister Over '40 Billion Won in Nominee Inheritance'

Former Taekwang Group Chairman Lee Hojin (61) filed a lawsuit against his older sister Lee Jaehun (67), claiming ownership of hundreds of billions of won worth of nominee bonds inherited from their late father, and won the first trial.

Former Chairman Lee Hojin of Taekwang Group Photo by Yonhap News

According to the legal community on the 26th, the Civil Division 27 of the Seoul Central District Court (Presiding Judge Son Seung-on) ruled in favor of Lee in a damages claim lawsuit against Lee, ordering "the defendant to pay the plaintiff 40 billion won and delayed damages."

The court stated, "At the time of inheritance commencement, the plaintiff did not have the right to inherit solely," but added, "The defendant did not file a lawsuit within the statute of limitations (10 years from the date of infringement), so the plaintiff acquired full ownership as the sole heir."

The court further said, "Unless the plaintiff temporarily entrusted the bonds to the defendant, it is difficult to find any reason for the plaintiff to ultimately dispose of the bonds to the defendant without any compensation," and "The defendant did not return the bonds and either received repayment of the principal and interest or disposed of them to a third party, so the defendant is obligated to pay the principal, interest, and delayed damages."

The 40 billion won in this case represents the value of bonds held under a nominee by the siblings' father, former Chairman Lee Imyong. Lee, who died in 1996, left a will stating, 'Give the property only to my wife and sons, excluding my daughters, and if there is any remaining property, handle it according to the wishes of the executor, former Chairman Lee Gihwa (the former chairman’s maternal uncle).'

The "remaining property" was revealed about ten years later during the prosecution’s investigation of Taekwang Group and the National Tax Service’s tax audit. Lee Hojin wrote a confirmation during the tax audit stating that he was the actual owner related to this matter and that he had acquired the bonds under another’s name but had not sold them and was holding them. Around 2010, Taekwang Group’s fund manager handed the bonds to Lee Jaehun and requested their "return" via certified mail in 2012.

However, Lee Jaehun did not comply, and Lee Hojin filed a damages claim against her in 2020. During the trial, Lee Hojin’s side argued, "According to the late chairman’s will, I inherited the bonds solely and temporarily entrusted them to Lee Jaehun." On the other hand, Lee Jaehun’s side countered, "The will is invalid," claiming the bonds belong to her and that she was never entrusted with the custody of the bond certificates.

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