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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Danbit Foundation, a public interest foundation established by Cho Hyun-moon, former Vice President of Hyosung Group and second son of the late Hyosung founder Cho Suck-rae, is under scrutiny amid allegations of mismanagement and tax avoidance.
According to the foundation’s financial disclosure, Danbit Foundation spent approximately KRW 1.04 billion (about USD 760,000) in 2023, with KRW 763 million allocated to personnel and facility costs, and KRW 279 million to miscellaneous business expenses. However, no specific public interest activities or project outcomes were disclosed. While most public interest foundations publish detailed records of their operations, Danbit Foundation has not shared any such information since its establishment in September 2023.
The prolonged inactivity has fueled suspicions that the foundation’s primary purpose was to reduce inheritance tax rather than pursue public good. The inheritance left to Cho by his late father is estimated at KRW 100 billion (approximately USD 76 million), and establishing the foundation reportedly enabled him to avoid paying around KRW 50 billion in inheritance taxes.
Although Cho stated at the time of the foundation’s launch that he would not be involved in its management to uphold its public mission, his wife, attorney Lee Yeo-jin, is currently listed as a board member—raising concerns about indirect influence. In response, the foundation stated: “Our board and administrative office are currently building the necessary operational structure. We have launched several initiatives, and some are expected to show results soon.”
Adding to the controversy, Cho is also engaged in a civil lawsuit with Barun Law LLC, which had advised him during the foundation’s creation. The firm has represented Cho since the high-profile "family feud" over Hyosung a decade ago and was involved in the foundation’s legal structuring. Observers suggest that the trial may shed further light on the foundation’s actual intent.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
