'Brotherly Conflict' Hyosung Court Meeting Fails... Cho Hyun-moon Ends Attendance After 5 Minutes

Employee Embezzlement and Breach of Trust Witness
Third Son Vice Chairman Jo Hyun-sang Absent
Court Postpones Examination Date to Next Month

Former Vice President Cho Hyun-moon, the second son of the Hyosung Group who initiated a lawsuit among brothers, appeared in court but left the courtroom after just five minutes. The trial was postponed because the third son and younger brother, Cho Hyun-sang, Vice Chairman of Hyosung, who was called as a witness, did not appear. The brothers' face-to-face meeting in court was thus unsuccessful.

Former Vice Chairman of Hyosung Group, Cho Hyun-moon [Image source=Yonhap News]

According to the legal and business circles on the 6th, the continuation trial for former Vice President Cho’s alleged attempted coercion, held on the 5th at the Seoul Central District Court under Judge Choi Min-hye of Criminal Division 26, ended in less than 10 minutes. Although former Vice President Cho appeared in court, the trial itself became impossible as Vice Chairman Cho, who was called as a witness, was absent. Vice Chairman Cho submitted a letter of absence on the 17th of last month, stating he could not attend this trial. Judge Choi rescheduled the witness examination for the 25th of next month.

Vice Chairman Cho was called as a witness to clarify whether there were any signs of embezzlement or breach of trust by Hyosung executives, as claimed by former Vice President Cho. In particular, Vice Chairman Cho was likely to be questioned about the meaning and circumstances of an email sent by former Vice President Cho in December 2012. Former Vice President Cho argues that the decision to acquire Dumi Comprehensive Development, a golf course company that was in a state of capital erosion at the time, caused damage to the company. As evidence, he stated that he sent an email to Vice Chairman Cho at the time, containing the message that "Hyosung’s acquisition of Dumi Comprehensive Development is a serious legal problem." Until 2012, Dumi Comprehensive Development’s shares were divided among the three brothers: Hyosung Group Chairman Cho Hyun-joon, former Vice President Cho, and Vice Chairman Cho. In 2013, Hyosung acquired 100% of the company and incorporated it as a subsidiary. Hyosung reportedly maintains that the acquisition was a legitimate business decision.

In July 2014, former Vice President Cho filed complaints and accusations against Chairman Cho and the group’s key executives on suspicion of embezzlement and breach of trust, triggering the so-called ‘brothers’ conflict.’ When asked by an Asia Economy reporter at the court whether he intended to continue the lawsuit without reconciling with his brothers, former Vice President Cho did not respond.

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