Global running shoe brand HOKA's domestic distributor, Joyworks, saw its former CEO, Cho Seong-hwan, publicly address an assault incident involving a former business partner nearly eight months after it occurred.
During a press conference on August 10 at the Koreana Hotel in Seoul, Cho acknowledged his responsibility for the assault while asserting that the victims had approached him with the expectation of violence. He also claimed that there were vested interests behind the incident related to the domestic distribution rights of HOKA.
"I will courageously say what is wrong is wrong and what is not true is not true," Cho stated. "I sincerely apologize for the discomfort caused by my mistakes."
He further alleged that the essence of the incident was a conspiracy involving a small group of insiders and external forces colluding to seize Joyworks' exclusive domestic rights to HOKA.
The incident occurred in December 2022 when Cho assaulted two representatives from competitor Caveworks in Seongdong-gu, Seoul.
The story broke in January 2023 through an MBC report, which introduced the victims as being affiliated with Joyworks' subcontractors, leading to a broader controversy over alleged abuse of power.
Following the incident, Cho admitted to the assault and stepped down from his position, while Deckers, the American company that owns the HOKA brand, notified Joyworks of the termination of their domestic distribution contract.
However, after mediation by the Press Arbitration Commission, some reports were corrected to clarify that the victims were not subcontractors of Joyworks but rather competitors who had established Caveworks.
Currently, Joyworks and Deckers are engaged in international arbitration regarding the termination of their distribution agreement.
Cho's side contended that the incident was mischaracterized as a case of a powerful company abusing a powerless subcontractor. The assault victims were identified as former Joyworks employee Im and former business partner Cheon, who had established Caveworks and were in competition with Joyworks.
Cho argued, "The essence of the incident is not about abuse of power in a subcontractor relationship, but rather a conflict induced by using company information to create a competing firm with a specific agenda to provoke violence."
A notable testimony came from Son Najayong Pullar, who claimed to have been close to the victims. Son stated that Im and Cheon had repeatedly mentioned going to "take a beating" before the incident, and that Cheon had said, "A few hits and it will be over."
Son also revealed a recorded phone conversation with Im, in which Im allegedly acknowledged such statements. He submitted a notarized statement to investigative authorities regarding these claims.
Son recounted that after the assault, he heard from the victims, "I was hit more than I expected," and expressed concern that the public narrative was vastly different from what he had witnessed.
Cho's team also raised suspicions that Caveworks continued to contact current Joyworks employees after their business relationship ended, allegedly using company resources and trade information. A KakaoTalk conversation was revealed, discussing the merging of Joyworks and Caveworks under the name "JokeWorks" and suggesting the use of personal emails instead of company ones.
Cho stated, "I only learned that Joyworks employees and Caveworks representatives referred to themselves as 'JokeWorks' after the incident," adding that he became aware of the misuse of Joyworks' resources post-assault.
Joyworks has initiated legal action for breach of trade secrets and embezzlement related to these allegations, which are currently under investigation with no final judgment from judicial authorities yet.
Cho also questioned the timing of Deckers' termination of the distribution contract following the assault report, stating, "I understand that nearly 30 companies contacted the U.S. headquarters after the report. While fair competition is always welcome, if there was a calculation to undermine a person to seize rights, that must stop."
When asked if he believed a specific large corporation was behind the incident, Cho refrained from naming any companies directly. He remarked, "Given the brand's growth, several large companies have competed with us over the years. You can infer who benefits the most from the contract termination."
However, no objective evidence linking a specific corporation to the assault was presented during the press conference.
Cho emphasized, "This is not a platform for me to reclaim my position." He expressed concern that his personal mistakes were affecting the livelihoods of unrelated employees, stating, "I will bear any punishment for my mistakes, but please do not let my employees suffer for it."
He also appealed to Deckers, saying, "The success achieved in the Korean market is built on the hard work of dedicated employees. It is crucial that they do not lose their jobs before the truth is revealed."
* This article has been translated by AI.
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