[The Editors' Verdict] Gangster Movie Scene Reenacted in Abandoned Building in Seongsu-dong

Joyworks CEO, Exclusive Distributor of HOKA Korea
Allegations of Assault Against Former Subcontractor's Employees
Time to Reflect on Performance-Driven Organizational Culture

An assault incident that emerged in the fashion industry at the very beginning of the new year has caused shock. The CEO of a company that imports and sells the global running shoe brand HOKA is suspected of having assaulted the former head and an employee of a subcontractor at an abandoned building in Seongsu-dong, Seoul last year. In a recently released voice recording, Cho Sunghwan, former CEO of Joyworks&Co, who has been identified as the assailant, is heard shouting "Do you know who I am?" at the former subcontractor's representatives, apparently during the assault. Cho claims that the incident was a "mutual assault" that occurred during a meeting where he intended to warn the former subcontractor's employees about spreading false information about him.

The truthfulness of each side's claims will be revealed through a police investigation. However, the former subcontractor's claim that they turned on the voice recording function on their phone because Cho invited them to a meal at an abandoned building, which seemed suspicious, appears convincing. In his written apology, Cho stated, "I am well aware that there is no justification for using physical force under any circumstances, but I failed to control my emotions in the moment and ended up making an irreparable mistake," and resigned from his position as CEO.

Although Cho acknowledged, "This incident is entirely my personal fault," the fact that scenes reminiscent of gangster movies are still playing out reminds us once again of the structural malaise of authoritarianism in our society. From the 2007 revenge assault on Cheonggye Mountain by Hanwha Group Chairman Kim Seung-youn, to the 2010 baseball bat assault on a delivery worker in his 50s by Choi Chulwon, former CEO of SK M&M (the so-called "price of beer assault"), the 2016 security guard assault by Jeong Woo-hyun, former CEO of Mr. Pizza, and the 2018 employee assault video involving Yang Jin-ho, Chairman of Korea Future Technology, "Gapjil" (abuse of power) assaults have repeatedly occurred whenever our society seems to have moved on.

Abuse of power assaults are not limited to physical violence. Any act in which a person in a superior position uses their power to oppress and control the other party falls under this category. At the root, as in Cho's remarks, lies the mindset of "Do you know who I am?" The so-called "Gapjil culture" is a practice where people demand recognition and obedience from others by flaunting their status or background. Various controversies surrounding Kim Byung-ki, former floor leader of the Democratic Party, are likely not unrelated to this issue.

This incident should prompt us to reflect on whether our society has still tolerated the culture of abuse of power for the sake of "performance" and "results." Cho served as co-CEO of Joyworks, which signed an exclusive domestic distribution agreement with Deckers, the U.S. headquarters of the HOKA brand, and of its subsidiary Joyworks&Co. Founded in France in 2009, HOKA specializes in functional running shoes with thick midsoles (cushioning), lightness, and a stable fit, and was acquired by Deckers in the United States in 2013.

Joyworks has been the exclusive domestic distributor for HOKA since 2018. The brand experienced rapid growth in Korea as the marathon boom surged following the transition to the COVID-19 endemic (periodic epidemic). Joyworks' sales, which began to be reported in audit reports in 2022, reached 22.8 billion won that year, then 43.3 billion won the following year, and 82 billion won in 2024—doubling annually. Following the recent assault incident, the stock price of Joyworks&Co, a KOSDAQ-listed company acquired by Joyworks last year that holds the offline sales rights for HOKA, plunged. Cho contributed to these achievements.

Abuse of power assaults that have become known to the public have resulted in both public condemnation and criminal punishment. With advances in technology, voice recording on mobile phones has become commonplace, and the resulting "abuse of power risk" has become a constant management concern. As consumers shift toward "values-based consumption," ESG (environmental, social, and governance)—including environmental, human rights, labor, and gender sensitivity—has become the standard for consumer choices. If companies fail to recognize these changes, the market will turn away without hesitation.

※At the request of Joyworks, all references to "subcontractor" in this article have been revised to "former subcontractor."

This content was produced with the assistance of AI translation services.