[Reporter’s Notebook]Cho Hyun-beom Repeats Only His Remark: "I Will Reconcile with My Brothers"

"I have to keep trying to reconcile with my brothers."

This is what Cho Hyun-beom, Chairman of Hankook & Company, said to reporters when he recently visited the Seoul Central District Court to attend a trial related to allegations of unfair support to affiliates and embezzlement and breach of trust. After putting an end to the management rights dispute with his brothers, Chairman Cho appeared for the first time and made remarks not much different from a few weeks ago. Last month, on his way to the same trial, he told reporters, "Since my father is elderly, I think the brothers need to clear up misunderstandings through dialogue." Seeing him repeat the same words over about 20 days suggests that, contrary to Chairman Cho’s hopes, there has been no dialogue between the brothers.

As is known, the management rights dispute ended with Chairman Cho’s victory. The risk that the funds of Hankook Tire & Technology, a business subsidiary of Hankook & Company, would be used for the personal gain of the controlling shareholder of the holding company or to defend management rights has disappeared.

However, there is still unease inside and outside the company. Cho Hyun-sik, an advisor to Hankook & Company who confronted Chairman Cho over management rights, has stated that, separate from the shareholding battle, he will continue to raise issues regarding corporate governance restructuring. This can be read as a stance to continuously raise issues against his younger brother. The discord between the brothers remains the biggest risk factor for the company’s governance structure.

The spark for this management rights dispute originated from the conflict between owner management and a professional management system. Chairman Cho has a strong will to manage directly, while his brothers, including Advisor Cho Hyun-sik, insist that the company should return to a professional management system rather than direct involvement by the owner family. Although there are differences in opinion, both likely share the desire for the company to grow and move forward.

Is there a possibility that these brothers will meet and resolve the issue through dialogue? Given the attitude that problems can be raised at any time, the likelihood seems low. Hankook Tire & Technology’s operating profit has steadily increased and is expected to exceed 1 trillion won last year. The market, shareholders, and company members are watching the owner family’s moves. To prevent a healthy company from being damaged, the only solution is for the younger brother, Chairman Cho, to approach and for the elder brother, Advisor Cho Hyun-sik, to respond in kind.

Source=Getty Images Bank

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