Cho Yang Rae, the honorary chairman of Hankook & Company Group, married Hong Moon Ja, the daughter of former Bar Association Chairman Hong Geung Sik, and had two sons and two daughters.
After retiring from management by handing over the company to his second son, Cho Hyun Bum, an unexpected conflict arose when his eldest daughter, Cho Hee Kyung, challenged her father’s mental health. The latest developments in this case, which led to a legal dispute for about four years, have been revealed.
According to the recent legal community, Cho Hee Kyung, the eldest daughter of Honorary Chairman Cho Yang Rae and the director of the Korea Tire Sharing Foundation, has filed an appeal with the Seoul Family Court, dissatisfied with the rejection decision made in the appeal trial for the commencement of limited guardianship.
Limited guardianship is a type of adult guardianship, a system where an adult who cannot handle affairs due to illness, disability, or old age receives property management, protection, and support through a guardian appointed by the family court’s decision.
Does this mean that the cognitive ability of Honorary Chairman Cho Yang Rae has declined? The case began in 2020 when he transferred all his shares to Cho Hee Kyung, the director, and his second son, Chairman Cho Hyun Beom (then president).
Honorary Chairman Cho sold all shares of the holding company, Hankook Technology Group, to President Cho through a block deal.
In response, Cho Hee Kyung questioned whether this was done voluntarily in a healthy mental state and requested an adult guardianship trial.
She argued, “Seeing such decisions, which are too different from the beliefs and thoughts he had, being made suddenly, many people were surprised and perplexed. It seemed necessary to objectively assess whether these decisions were made voluntarily in a healthy mental state.”
In fact, at that time, President Cho Hyun Bum became the majority shareholder by acquiring 23.59% of Hankook Technology Group, raising his shares to 42.9%.
Even if the remaining shares of the three siblings, including eldest son Cho Hyun Sik (then vice chairman of Hankook & Company, 19.32%), Chairman Cho Hee Kyung (0.83%), and Cho Hee Won (10.82%), were combined (30.97%), Chairman Cho had significantly more.
About two years after the lawsuit was filed, in April 2022, the court dismissed Cho Hee Kyung’s claim in the first instance.
When reviewing the past medical records and expert opinions of Honorary Chairman Cho, it was found that he was fine.
Cho Hee Kyung appealed, but in the second instance, the court sided with Honorary Chairman Cho. They judged that there was no abnormality in his physical and mental state.
As judged by the court, Honorary Chairman Cho Yang Rae has recently been carrying out his schedule without any issues.
According to legal sources, he consistently and clearly expressed his intentions at court hearings and other occasions.
He showed a healthy appearance when he visited the memorial service of his elder brother, Honorary Chairman Cho Seok Rae of Hyosung Group, who passed away last month.
Furthermore, an official from Hankook & Company Group reported, “Honorary Chairman Cho exercises every morning and conducts meals and meetings with executives.”
Meanwhile, Honorary Chairman Cho Yang Rae was born as the second son of Hyosung Group founder Cho Hong Je.
After serving as a director of Dongyang Nylon, he worked as an executive at Hankook Tire and inherited Hankook Tire from his father.
He was known for his reclusive management style, reluctant to take the lead. He also separated ownership and management by establishing a professional management system early on.
Unlike his brother Chairman Cho Seok Rae, he did not show an active outward appearance. He served as the chairman of the Korea Tire Manufacturers Association and is currently the chairman of the Hankook Tire Welfare Foundation.
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