[이코노미스트 이혜리 기자] “Over the past eight months, there have been so many events that were utterly incomprehensible that I had to verify them again and again. Now I can say this with certainty: The essence of this incident is a media ploy orchestrated by colluding internal accomplices and external forces to strip JoyWorks of its exclusive domestic sales rights.”

Cho Seong-hwan, former CEO of Joyworks & Co. (hereinafter “Joyworks”), the domestic distributor for the global running shoe brand “HOKA,” has spoken out regarding the “abuse of power and assault” incident. This comes eight months after the assault occurred in Seongdong-gu last December. While acknowledging the assault, he claimed that the victims’ side intentionally provoked the incident in an attempt to strip HOKA of its exclusive domestic distribution rights.

At a press conference held on the morning of the 10th at the Koreana Hotel in Jung-gu, Seoul, former JoyWorks CEO Cho bowed his head and said, “Regardless of the reasons, I apologize for causing concern and inconvenience to many people due to my personal negligence.”

Previously, former CEO Cho was accused of assaulting two former business associates at an abandoned building in Seongdong-gu last December. The victims sustained injuries requiring 3 to 5 weeks of medical treatment. As the controversy grew and a boycott campaign ensued, former CEO Cho issued an apology and resigned from his position as CEO. Deckers, the parent company of Hoka, notified him of the termination of the domestic distribution agreement.

Former CEO Cho directly refuted the narrative that emerged early in the case—that the assault was “abuse of power by a client against a subcontractor.” He argued that the victims, Mr. Lim and Mr. Cheon, were not employees of a subcontractor. Mr. Lim is a former employee of JoyWorks, and Mr. Cheon is the CEO of a business partner that Mr. Lim managed during his tenure. After leaving the company, the two co-founded CaveWorks, a competitor of Hoka. 

JoyWorks terminated its business relationship with them in 2024 on the grounds that they had used internal information to open competing stores. Lee Don-ho, managing partner at Nova Law Firm and the legal representative for JoyWorks, explained, “The business relationship between the two companies had already ended 10 months before the incident occurred, so no contractual ‘principal-agent’ relationship existed,” adding, “Following mediation by the Press Arbitration Commission, a correction was issued stating they were competitors, not subcontractors.”

“Just take a few hits and it’ll be over”… Business Partner’s Confession

Son Na-ja-yong, CEO of the running and outdoor brand Flar, who had been in a business partnership with the victims for several years, attended the press conference that day. CEO Son claimed that even before the incident, Mr. Lim and Mr. Cheon repeatedly said they were “going to get beaten up,” and that Mr. Cheon said, “Just take a few hits and it’ll be over.” He testified by presenting audio recordings and KakaoTalk chat logs, stating that even in a recent phone call with Mr. Lim, Mr. Lim admitted to saying on the day of the incident, “If they hit me, I’ll just have to take it.” 

CEO Son also claimed that in a group chat involving Caveworks officials and current and former Joyworks employees, discussions took place regarding transactions through shell companies, the use of personal email accounts, and plans to utilize internal assets such as Joyworks contracts. There was also mention that those involved referred to themselves as “Jo-K Works.” CEO Son stated, “I have compiled the relevant recordings and chat room materials and submitted them to the investigative authorities, and my statement has also been notarized.”

Former CEO Cho also emphasized that the timing of the report on the assault incident coincided with the renewal of the domestic licensing agreement for Hoka. He claimed, “To seize the domestic licensing rights for a global brand that I had built through years of blood, sweat, and tears, certain forces colluded with internal accomplices to deal a fatal blow to my moral character as CEO,” adding, “This was an act of defamation and an infringement on management rights planned to coincide with the renewal of the licensing agreement.”

According to JoyWorks, immediately after the initial report, a reporter directly inquired with Deckers’ headquarters regarding the termination of the contract, and the contract—worth 100 billion won annually—was terminated before any decision was made by investigative authorities or the courts. JoyWorks and Deckers are currently engaged in international arbitration proceedings regarding the termination of the distribution contract. JoyWorks has obtained an emergency order from the International Center for Dispute Resolution (ICDR) in the U.S. allowing it to continue operating the Hoka business until a final ruling is issued.

JoyWorks has filed a criminal complaint against the defendants on charges of trade secret infringement, bribery, and embezzlement. The court has issued a search and seizure warrant in connection with the case. Former CEO Cho is also pursuing a separate lawsuit in his personal capacity on charges of spreading false information and defamation. Attorney Lee pointed out, “Considering that 50 million won was deposited as security for each victim and the severity of the injuries, the request for an arrest warrant was unusual.” Previously, the court had rejected the arrest warrant for former CEO Cho, stating there was no risk of evidence destruction or flight.

Finally, former CEO Cho made it clear that his intention was not to return to management. He stated, “The brand, which has grown 20-fold in eight years, was built by 140 employees,” and appealed, “Please do not make the employees bear the punishment in my place.” Addressing the U.S.-based company Deckers, he said, “This is a matter concerning Cho Seong-hwan personally,” adding, “Deckers is also a victim of distorted reporting and fake news.”

Former CEO Cho said, “It was clearly my fault that I resorted to violence, and I will fulfill my legal and moral responsibilities,” but added, “Through the investigation by law enforcement agencies, I will clearly reveal the truth behind the allegations and the inner workings of the scheme surrounding the copyright.”

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