Hyosung Brothers Face Off in Court After 12-Year Feud, Chairman Testifies

On August 21, Hyosung Group Chairman Cho Hyun-joon and his younger brother, former Hyosung vice chairman Cho Hyun-moon, appeared in court for the first time since a 12-year feud erupted over control of the conglomerate in 2014. The Seoul Central District Court held a hearing, with the chairman testifying as a witness against his brother.

Cho Hyun-joon alleged that his brother had threatened him, accusing him of attempted coercion. The central issue of the trial is whether Cho Hyun-moon forced his brother to buy his shares in an unlisted company. The dispute began in 2014 when Cho Hyun-moon accused his brother and other Hyosung executives of embezzlement and breach of fiduciary duty.

The brothers' conflict came to light when Cho Hyun-moon accused his brother of embezzlement and breach of fiduciary duty, leading to Cho Hyun-moon's departure from Hyosung. Prosecutors reinitiated their investigation in 2022 after locating Cho Hyun-moon, who had been living overseas. In November 2022, prosecutors indicted him on charges of attempted coercion, claiming he threatened to expose evidence of misconduct to prosecutors in exchange for a premium price for his shares.

Cho Hyun-moon has denied the allegations, stating that he merely exercised his shareholder rights. Cho Hyun-joon's team, however, maintains that his brother demanded excessive personal gain by threatening to report alleged misconduct to authorities. The latest testimony may be a turning point in the long-standing legal dispute between the brothers, with the court expected to review Cho Hyun-joon's testimony and both sides' evidence to determine if Cho Hyun-moon is guilty of attempted coercion.