Estranged son of late Hyosung honorary chairman will donate entire inheritance

Industry

Published: 05 Jul. 2024, 17:14 Updated: 05 Jul. 2024, 19:21

Estranged son of late Hyosung honorary chairman will donate entire inheritance

Cho Hyun-moon, the estranged second son of the late honorary Hyosung Group Chairman Cho Suck-rai, speaks about his inheritance during a press conference on Friday in southern Seoul. [YONHAP]

Cho Hyun-moon, the estranged second son of the late honorary Hyosung Group Chairman Cho Suck-rai, pledged to donate his entire inheritance from his father in hopes of ending his “yearslong feud” with his brothers.

“I won't own any of the inheritance from my deceased father and will contribute it to establish a public trust,” Cho Hyun-moon said during a news conference in Gangnam District, southern Seoul, on Friday.

Hyosung Group's late honorary chairman seeks family unity with will amid brotherly estrangement

The sectors where the foundation, called Danbit, will contribute have not been decided, but it will generally aim to aid the “underprivileged,” Cho Hyun-moon said.

“In accordance with the will of my deceased father, I would like to forgive all for their unreasonable doings and wish for an end to this sibling feud.”

The size of inheritance is estimated to be some 100 billion won ($72 million) based on the value of the Hyosung shares that Cho Hyun-moon inherited from the late honorary chairman.

The late Cho Suck-rai requested “harmony” among his three sons in his will last year and asked that they protect their friendship.

Cho Hyun-moon has been engaged in a legal battle with the group's top management after suing his older brother, current Hyosung Chairman Cho Hyun-joon, and other executives for alleged embezzlement in 2014.

The second son left the company at the time, selling his 17.8 percent stake in Hyosung, and was excluded from participating in its management. The sibling feud continued when the eldest Cho sued his younger brother in 2017 on charges of blackmail.

“I have no interest in the management of Hyosung; my biggest hope is to be completely free,” Cho Hyun-moon said, asking for his brothers' and the company's cooperation in liquidating his remaining shares of non-listed Hyosung subsidiaries in the interest of “a complete separation.”

Cho Hyun-moon, the estranged second son of the late honorary Hyosung Group Chairman Cho Suck-rai, enters a press conference on Friday in southern Seoul. [YONHAP]

Cho Hyun-moon added that the “inheritance process is still ongoing as I found many unclear and unacceptable factors such as the [will’s] acquisition, form and content.”

Cho Suck-rai's will allocated Cho Hyun-moon 3.4 percent of Hyosung T&C, 1.5 percent of Hyosung Heavy Industries and 1.3 percent of Hyosung Chemical. Those stakes still belong to the late honorary chairman since Cho Hyun-moon has not accepted the terms of the will.

The eldest Cho approved his father's will and became the largest shareholder of Hyosung with 33.03 percent. The youngest brother, Hyosung Vice Chairman Cho Hyun-sang, is the second-largest shareholder with 22.05 percent.

Hyosung immediately issued a statement emphasizing the importance of sincere reconciliation upon the honorary chairman's death.

“Families deliberate the fundamental and practical ways to make peace and harmony,” Hyosung said. “It’s fortune that Cho showed his willingness to accept his father's will.”

BY SARAH CHEA [chea.sarah@joongang.co.kr]