Hyosung Chairman Cho Hyun-joon testified that his father urged his brother, former Hyosung Vice President Cho Hyun-moon, not to withdraw a lawsuit until he repented.
On August 21, Cho Hyun-joon appeared as a witness in the trial regarding his brother's alleged attempted coercion, presided over by Judge Lee Seong-yeol at the Seoul Central District Court. This marked the first time the two brothers met in court since the so-called 'Hyosung Brothers' Conflict' in 2014.
Cho emphasized that the lawsuit was in line with the wishes of their late father, Cho Seok-rae, the former honorary chairman of Hyosung Group. He stated, "My father believed that this was the only way to awaken his second son, and he chose this lawsuit with a heavy heart. He hoped that this would lead Hyun-moon to reflect on his actions."
He added, "I do not know how many family members are suffering because of this. The reason for the lawsuit is to remind my brother not to further torment our family, as my father wished."
Cho also claimed that there was coercion involved when his brother took physical shares related to the company's management rights. He stated, "The shares taken by my brother were related to the management rights of the company, and according to family tradition, any transfer of ownership required the consent of our father and family. There was no such process in this case."
He explained that their late father believed that Cho Hyun-moon had intimidated an executive in charge of stock management, Ko Dong-yoon, to take shares stored in a Woori Bank safe. "To dispose of company shares, one would need to ask our father to buy or take the shares. It is incomprehensible that he would send a certified letter to Woori Bank to forcibly take the shares," he argued.
Cho recounted a particularly tense incident from March 8, 2015, when Cho Hyun-moon visited their father's home. He testified that his brother locked the reception room door, preventing staff from entering, and directed severe insults and threats toward their parents.
He claimed that Cho Hyun-moon made derogatory remarks about their mother, saying he regretted being born from her, and threatened their father by calling him a "criminal organization." Cho stated, "Such outrageous comments caused our parents significant emotional distress, and this was clearly a form of intimidation." He added that their mother had hoped Hyun-moon would return, even putting up a skiing photo, but their father, after being shocked, removed it.
There were also claims that Cho Hyun-moon continued to pressure the family regarding the establishment of a public foundation and issues related to inheritance. Cho Hyun-joon mentioned that in 2024, his brother requested approval to establish a public foundation, saying, "If he wants to do good, he could donate to another foundation. I do not understand why he insists on creating his own foundation." However, he noted that he eventually agreed to the foundation's establishment.
Regarding the issue of shares in unlisted affiliates, he stated, "Since it is only 10%, it does not affect management rights. If it is a matter of property, I hope we can settle our assets and go our separate ways." He expressed a desire to sever ties with his brother, saying, "I want to cut off all connections as he wishes."
However, he pointed out that the shares in unlisted companies have not yet been settled, and their father had been very concerned about Hyun-moon during his lifetime. He claimed that Hyun-moon is now pressuring the family with inheritance lawsuits regarding the shares left to them.
Cho stated, "This is just another way to provoke a fight. If it is a matter of property, we should discuss only the property, but I cannot contain my dismay at the fact that he is resorting to lawsuits over our father's inheritance."
Regarding a press release that Cho Hyun-moon demanded during his resignation process in 2013, Cho Hyun-joon argued that it was a calculated move for stock sales.
According to Cho, a lawyer named Gong Seung-bae and former News Communication representative Park Soo-hwan, acting on Cho Hyun-moon's orders, visited Hyosung twice, demanding that a press release regarding his resignation be distributed on February 28, 2013, at 3 p.m.
Cho claimed that Cho Hyun-moon was under an agreement with Goldman Sachs for a block deal of shares, and that if the press release was distributed during trading hours, it could lower the stock price, thus reducing the sale proceeds. He argued that the press release was not meant to formalize his resignation but was a calculated move to sell his shares at a higher price.
He also asserted that the shares held in Cho Hyun-moon's name were managed by their late father and the family to defend management rights. Cho stated, "It cannot be viewed as something he bought with his own money. Ownership is secondary to management rights, so he cannot arbitrarily seize and sell them."
He described this as a "backstabbing act," asserting that it was necessary to issue a press release through Hyosung to justify the action.
In contrast, Cho Hyun-moon's side argued that his comments about exposing company corruption were warnings rather than threats. During previous cross-examinations, his legal team claimed that his statements were merely predictions or warnings regarding management corruption.
Cho Hyun-joon countered, "How can anyone accept such statements from a brother directed at his brother and father?" He reiterated his intention to seek punishment for Cho Hyun-moon.
The court plans to summon Cho Hyun-joon again as a witness on August 28 to continue the examination.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.