For the past decade, the Hyosung Group 효성그룹, South Korea’s 24th largest chaebol 재벌 group best known internationally for its market-leading retail ATMs, has been mired in a bitter succession dispute as the three sons of second-generation leader Jo Seok-rae 조석래 vied to take over the group. In 2014, Jo Hyeon-mun 조현문, the second son, sued his older brother Jo Hyeon-jun 조현준, alleging embezzlement; his brother counter-sued, alleging extortion.
The dispute intensified when the elder Jo officially handed the reins to his oldest son in 2017, and passed away in March 2024 after leaving his second son a significantly smaller share of the group. Pushed out from the group’s management, the younger Jo had relocated to Singapore to run another business. Uninvited to his father’s funeral, Jo Hyeon-mun could only attend the funeral for five minutes as a guest.
On July 5, Jo Hyeon-mun made a surprise announcement that he would donate his entire inheritance - approximately KRW 100b (USD 73m), consisting of minor stakes in Hyosung’s affiliates - to a public foundation. Jo declared that he no longer had any interest in managing the Hyosung Group, saying he wanted “100% freedom from Hyosung.” With the younger Jo’s offer of a truce, the Hyosung Group is likely to settle into a third-generation succession.