Legal Battle Expected Over Legacy of Late Hyosung Honorary Chairman – Second Son Prepares to File Lawsuit for Inheritance

A legal battle is expected to begin over the legacy of the late Cho Seok-rae, the honorary chairman of the Hyosung Group, who died in March. This is because the second son, former Vice President Hyosung, Cho Hyun-moon, has started preparing to file a lawsuit claiming the remaining share (the the less estate the surviving family receives despite the will of the deceased). The industry believes that the amount claimed is in the hundreds of billions won.

Former Hyosung Vice President Cho Hyun-moon, the second son of the late Cho Seok-rae, honorary chairman of the Hyosung Group, leaves the funeral home after paying respects to his father at the funeral hall of the Sinchon Divorce Hospital Yonsei University in Seodaemun -gu, Seoul on the evening of March 30. The name of former Vice President Cho, who instigated the ‘Revolution of the Hyosung Brothers’, was not even on the list of bereaved families published on the funeral home’s electronic display board. / great news

According to investment banking (IB) and the legal community on the 8th, former Vice President Hyosung Cho Hyun-moon contacted several law firms recently to hire a legal representative ahead of the oil claim litigation. Large law firms are said to be among them.

Hyosung is also going through the process of hiring a law firm. However, this is for estate tax reporting purposes. Proposals have been received from a number of large law firms, and it was initially expected to confirm which one will be appointed by the end of last month, but it is reported that the decision has been delayed.

An official in the legal field said, “Currently, we are hiring a law firm to represent us in filing estate tax returns, but there is a high possibility that the law firm will represent the defendants.” (Chairman Cho Hyun-joon and Vice Chairman Cho. Hyun-sang) in the future reserve share claim lawsuit,” saying, “Of course, reserve share claim lawsuit.” “Because it is a matter of choosing a law firm to handle the case together, Hyosung will have no choice but to think carefully.” In fact, it is known that the proposal submitted by law firms to Hyosung this time even takes included an estimate of the amount of fuel that former Vice President Cho will be collecting in the future.

Another official said, “It is natural that there is strong competition because there is no reason for a large law firm to refuse to represent Hyosung, but it is doubtful which law firm can handle former Vice President Cho’s case .” Since large law firms are likely to undertake or lead work related to Hyosung in the future, a conflict of interest may arise if they represent the t -former Vice President Cho.

This official said, “Under the current situation, the lawyers that former Vice President Cho can appoint are Kim Hyun-jung, former chief judge of the Seoul Family Court (now affiliated with Barun Law Firm), who presided over the first trial. of the divorce case of SK Group Chairman Choi Tae-won, and Noh So-young, director of the Nabi Art Center He said, “They are the only people from the previous court who have no conflict between com -part with Hyosung, such as Kim Soo-jung, former chief judge of the Seoul Family Court (currently a representative lawyer at the Liu Law Firm).

Vice President Cho is the second son of Honorary Chairman Cho Seok-rae. In 2014, after reporting to the heads of Hyosung Group affiliates and his elder brother, Hyosung President Cho Hyun-joon, to the accusation of embezzlement and breach of trust, he denied not a only his older brother, but also his younger brother, Leas. Chairman Cho Hyun- sang, and his father, cutting off communication. Although he visited the funeral of Honorable Chairman Cho to pay his respects, it was short lived. His name was not even listed on the list of bereaved families published on the electronic display board.

Industry sources estimate that the amount of fuel former Vice President Cho claims is in the hundreds of billions won. There is no need to confirm the amount of the retained portion before filing a lawsuit, and you can first file a lawsuit for only a portion of the amount and then change the amount further later on.

A lawyer specializing in domestic affairs said, “If the inheritance relationship is not confirmed and the division of the property is not confirmed, it is difficult to determine the portion that has been retained, so cases are usually where only a part is requested and the reserved portion is determined later “There is a lot,” he said.

In principle, a lawsuit claiming retained earnings must be filed within one year of the deceased’s death. In other words, former Vice President Cho must file a lawsuit by March 2025. The deadline to pay the estate tax is September this year, but it is not co- related to the lawsuit claiming the reserve. From the point of view of the tax authorities, it is known that Hyosung Group is likely to pay taxes because they receive taxes from anyone.

The Constitutional Court recently ruled that some oil reserves were unconstitutional, but this does not currently apply to the Hyosung Group case. On the 25th of last month, the Constitutional Court decided that Article 1112, Paragraph 4 of the Civil Act, which specifies the reservation of ‘brothers and sisters’, is unconstitutional. As for former Vice President Cho, he is claiming a reserved portion of his father’s property, so he has nothing to do with this unconstitutional decision.

However, the Constitutional Court ruled that the law must be reviewed by December 31, 2025, saying it is against legal sense and common sense to recognize the remains of families who have committed ‘disloyalty’ such as abuse and abandonment by former Vice President So They believe they have committed adultery against their parents. Therefore, whether or not the former Vice President So was corrupt is going to be an issue.

It is not yet known whether the revised law can be applied retroactively, and if retroactive legislation is applied, at the time the status is set (such as the time of the heir’s death or the time of file a lawsuit to keep it). . For example, if the time to file a lawsuit to claim oil reserves is the norm, former Vice President Cho can avoid a retroactive claim if he files a lawsuit -law in before the law is revised. It is reported that whether it will be retroactive or not will be included in the supplementary provisions of the revised law.

A lawyer specializing in housework explained, “From the point of view of former Vice President Cho, he would like to file a lawsuit for fuel storage as soon as possible, but from Hyosung’s point of view, it is beneficial to extend the terms of the trial because they have to fight. to the point of violation under the revised law.” He said, “In the end, if Hyosung doesn’t finish the trial quickly, corruption will become a major issue, and then former Vice President Cho will have little chance to win.” .”

The industry is paying attention to the amount of fuel that former Vice President Cho claims. The value of shares in Hyosung Group’s main listed entities held by Honorary Chairman Cho Seok-rae alone amounts to 700 billion won. If former Vice President Cho wins the lawsuit for reserved share, he can inherit half of the statutory estate (22.2%) regardless of his will.

However, the industry believes that the amount requested by former Vice President Cho will increase to 100 billion won. Since the other brothers, Chairman Cho Hyun-jun and Vice Chairman Cho Hyun-sang, have already received gifts from their father, the sum of all these amounts should be considered the property basic to calculate the reserve.