Hyosung Chairman Cho Hyun-joon testified on the 21st in the trial of his younger brother, former Hyosung Executive Vice President Cho Hyun-moon, on attempted coercion charges, saying to the effect that "father said, 'There is no way to make Hyun-moon repent other than this. I hope he reflects, even if it has to be done this way.'"
Hyosung issued a statement right after the hearing summarizing Chairman Cho's key testimony and disclosed his side's position on the brothers' conflict and the circumstances of the complaint.
Lee Sung-yeol, a single-judge panel of the Criminal Division 25 at the Seoul Central District Court, held a hearing that day on the case against former Executive Vice President Cho and Park Su-hwan, former head of News Communications, on charges including attempted coercion, and questioned Chairman Cho as a witness.
Prosecutors believe former Executive Vice President Cho pressured Hyosung to distribute a press release positively evaluating his management performance and, if it refused, threatened in effect to inform prosecutors of corruption at Hyosung. Regarding the press release, Chairman Cho testified, "It does not match objective facts," and said, "The phrase 'going to Seocho-dong' could not help but sound threatening."
◇Hyosung side: "Father said, 'I hope he reflects, even if it has to be done this way'"
In court, Chairman Cho said, "Filing complaints and accusations over this case was something that could not be done without father's permission," and, to the effect, "father thought there was no other way to awaken his second son."
Chairman Cho said, "I don't know how many family members are being harmed," and added, "I hope, taking father's words to heart, that our household will no longer be tormented with complaints and accusations." When prosecutors asked whether he wanted former Executive Vice President Cho to be punished, he answered, "Yes, I do."
Chairman Cho also explained the background of the family conflict that led to the complaint. He testified that in Mar. 2015, when former Executive Vice President Cho visited the parents' home, harsh words were exchanged. He said former Executive Vice President Cho remarked to the effect, "I regret having come from a mother like a viper," and "I will make you rot in prison until you die." Chairman Cho said the parents suffered severe psychological shock from this incident.
"I don't understand how the shares were taken… if it's a property issue, let's discuss only the property"
There were also claims about the process of disposing of shares. According to Hyosung, Chairman Cho said, "Regardless of in whose name they were, shares related to management control had to have father's and the family's consent as an unwritten rule," and added, "There was no such process at all."
Chairman Cho testified to the effect that "father believed (former Executive Vice President Cho) intimidated the finance executive and took by force the shares kept in a Woori Bank safe-deposit box." He went on to say, "He could have straightforwardly asked father to buy the shares, but I could not understand taking them while even sending a content-certified letter."
On the inheritance and equity in unlisted affiliates, he said, "If it's a property issue, let's approach it as a property issue and go our separate ways," adding, "I want to sever ties and cut off contact as my younger brother wants."
Hyosung claims that even after former Executive Vice President Cho sought consent to establish a public-interest foundation, he has continued to raise issues over equity in unlisted companies and the legal reserved portion.