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Lee Ho-jin, former chairman of Taekwang Group. (Photo=Yonhap News) |
[Alpha Biz= Kim Jisun] Former Taekwang Group Chairman Lee Ho-jin has won a final victory in a legal battle over inherited assets against his sister. The Supreme Court of Korea ruled that a clause in the will of Taekwang Group founder Lee Im-yong, which authorized former Taekwang Industrial President Lee Ki-hwa to manage certain assets, was legally valid.
On February 2, the Third Division of the Supreme Court (Presiding Justice Lee Sook-yeon) upheld the lower court's ruling, ordering Lee Ho-jin’s sister, Lee Jae-hoon, to pay KRW 15.35 billion ($11.5 million) plus delayed interest. The court dismissed appeals from both parties, finalizing the judgment.
The late Lee Im-yong, who passed away in November 1996, had written a will two months before his death. The will allocated assets to his wife and two sons, explicitly excluding his three daughters from inheritance. It also entrusted the disposal of unspecified assets to his brother, former President Lee Ki-hwa.
The dispute arose when a KRW 40 billion ($30 million) fund, managed under borrowed names, was uncovered during a 2010 prosecution investigation into Taekwang Group’s slush funds. The group's finance manager had transferred a portion of these assets to Lee Jae-hoon, prompting Lee Ho-jin to demand their return in 2012. When his sister refused, the case escalated into a lawsuit in 2020.
The first trial ruled that the will's asset disposal clause was invalid, citing its non-transferable nature. However, the appellate court upheld the validity of the will, recognizing that Lee Ho-jin legally inherited the disputed assets as per his uncle’s decision. The final ruling limited the repayment obligation to KRW 15.35 billion, based on verified financial transactions.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
