[CEONEWS = Reporter Jo Sung-il] Last October, during the Hyundai N x Toyota Gazoo Racing Festival held at Everland Speedway in Yongin, an unexpected CEO made a surprise appearance alongside Hyundai Motor Chairman Chung Euisun and Toyota Motor Chairman Akio Toyoda: Cho Hyun-beom, Chairman of Hankook & Company. Samsung Electronics Chairman Lee Jae-yong was also present, adding further weight to the occasion.
This gathering was more than just a symbolic show of support among business leaders. It represented Hankook Tire’s significant role as a key partner in Hyundai Motor’s vision for the future of mobility.
After settling a management dispute with his siblings, Cho Hyun-beom is now gearing up for a new chapter of growth and transformation. Who is this leader, poised to drive Hankook & Company into the forefront of the mobility revolution?
Completing a Decade-Long Acquisition of 'Hanon Systems'
As demonstrated at the recent gathering, collaboration with Hyundai Motor is essential for Chairman Cho Hyun-beom to expand Hankook & Company’s presence in the electric vehicle (EV) sector. Beyond its existing tire and battery businesses, the company needs a portfolio tailored to automotive electronics. This field, which encompasses all electronic and electrical equipment used in eco-friendly vehicles—such as motors, central control units, and speed sensors—is considered a key driver of future growth and a critical area of focus for global IT giants.
In this context, Chairman Cho completed the acquisition of Hanon Systems in November, a deal he had pursued for 10 years. Hanon Systems, a thermal management solutions company that designs and supplies components for EV thermal management systems, marks a significant diversification of Hankook & Company’s traditionally tire-focused business. This acquisition signals the company’s ambition to evolve into a mobility-focused enterprise. This makes the meeting in Yongin all the more meaningful.
With the acquisition of Hanon Systems, Hankook & Company is expected to climb the ranks of South Korea’s business conglomerates, moving from its previous position at 49th to the late 20s. Hanon Systems is projected to achieve 9.56 trillion won in revenue in 2023, surpassing Hankook Tire’s 8.94 trillion won.
This significant leap has raised concerns among some observers about the so-called “winner’s curse.” Despite strong post-acquisition performance, Hankook Tire’s stock price saw a decline. However, industry insiders remain optimistic, highlighting Chairman Cho’s bold decision-making as a strategic move to position the company for growth in the era of electric vehicles. His decisive leadership is expected to drive Hankook & Company toward new heights.
Resolution of the Sibling Management Dispute
Chairman Cho Hyun-beom recently addressed a long-standing issue that had weighed heavily on his shoulders. The so-called “sibling feud,” a management dispute among family members, had become a significant obstacle for the busy CEO.
The dispute began in 2020 when their father, Honorary Chairman Cho Yang-rae, transferred his 23.59% stake—an amount critical to controlling the company—to his second son, Cho Hyun-beom, through a block deal (off-hours large-scale transaction). Although there had been prior disagreements, they were believed to have been resolved.
However, the situation escalated as Cho’s older brother and sister joined the fray, turning the dispute into an all-out conflict that eventually led to a legal battle.
His sister, Cho Hee-kyung, Chairperson of the Hankook Tire Welfare Foundation, questioned whether their father’s decision to sell his shares to Cho Hyun-beom was made voluntarily and with sound mental health.
The matter was ultimately resolved last year when the Supreme Court dismissed Cho Hee-kyung’s appeal for limited guardianship proceedings. This decision effectively ended the sibling feud, solidifying Cho Hyun-beom’s control over the company and clearing the way for him to fully demonstrate his managerial capabilities.
Now, Chairman Cho is poised to move forward boldly and swiftly. While challenges and obstacles may lie ahead, overcoming hurdles of this nature is a necessary step for growth and progress. It is through such perseverance that success and innovation are achieved.
A Leap Forward with the 'Stream' Philosophy
Cho Hyun-beom, Chairman of Hankook & Company, is widely recognized as the son-in-law of former South Korean President Lee Myung-bak. He is also the second son of Honorary Chairman Cho Yang-rae, who is the second son of the late Cho Hong-jae, founder of the Hyosung Group. After inheriting Hankook & Company, which was acquired by his father, Honorary Chairman Cho separated it from Hyosung and established it as an independent enterprise. Today, Hankook & Company specializes in automotive components, including batteries, with Hankook Tire as its centerpiece.
After graduating from high school in the United States and earning a degree in economics from Boston University, Cho began his career at Hankook Tire. He has held several key positions, including Head of Marketing, Head of Strategic Planning, Head of Management Planning, and CEO.
Known for his hands-on leadership style, Cho minimizes hierarchical barriers by meeting directly with employees rather than relying on formal reports to his office. He introduced the slogan "Stream," which embodies the concept of understanding future industry trends and creating continuous momentum for new growth drivers.
Cho also emphasizes work-life balance, advocating for a corporate culture that values the well-being of its employees. He has championed improvements in working conditions and the modernization of facilities through the adoption of advanced automation systems.
In a bid to reduce stress from unnecessary meetings, Cho distributed a "Meeting Value-Up Guide," which outlines principles such as:
- Clarifying the purpose of meetings beforehand
- Using a flexible report format that includes only essential data
- Ensuring everyone has the opportunity to speak
- Practicing active listening and respectful communication
- Sharing concise conclusions focused on who, when, and what
Cho’s ultimate goal is clear: to surpass Bridgestone, a global top-tier brand often compared to Hankook Tire. By leveraging motorsports as a foundation for developing cutting-edge technologies, Cho plans to expand the company’s product offerings and solidify its position as a global leader.
Cho firmly believes in thinking beyond the basics. As he puts it, "Simply doing what we've always done, even better, is not enough to win in this competitive environment. Survival requires thinking in entirely new ways." His management philosophy underscores the importance of talent and the creation of a dynamic corporate culture as the cornerstone of Hankook & Company’s success.
"To ensure that a company does not settle for the present but continues to achieve constant growth, it is essential to foster a creative corporate culture that fully brings out individual strengths and capabilities."
Cho Hyun-beom is young, and with youth comes ambition and passion. There is great anticipation for Cho to fully demonstrate his creative and socially impactful leadership, guiding the company toward new heights.
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