Assault an 'Individual Deviation,' but Behind It 'Forces Targeting the License'... Where Will the 100 Billion Won HOKA License Go?

"Edited Audio Recordings, Biased Reports Led to Contract Termination"

Allegations of Major Corporate Involvement Raised

Future of the HOKA License Remains Uncertain

Seonghwan Cho, former CEO of Joyworks, the domestic distributor of the running shoe brand HOKA, apologized for the assault incident that occurred last year, admitting, "It was clearly my fault." However, he raised the possibility that behind the incident were internal forces within Joyworks and external companies who were seeking to obtain the Korean license for HOKA. Although he acknowledged that the assault was a personal dispute, he asserted that the incident had been orchestrated to strip Joyworks of the HOKA license.

On the 10th, during a press conference held at the Koreana Hotel in Jung-gu, Seoul, former CEO Cho stated, "Regardless of the reasons, using violence was undeniably wrong," and added, "I will humbly accept any legal and moral responsibility." His side revealed that settlements were reached with two victims by paying each of them 100 million won.

Cho Sung-hwan, former CEO of Joyworks, bows his head apologetically during a press conference held on the 10th at the Koreana Hotel. Cho, the former CEO, admitted, "The assault was clearly my fault," but also claimed, "It was a planned incident targeting the Joyworks licensing rights." Photo by Kwon Jaehee

However, former CEO Cho argued that the assault incident and the responsibility of the Joyworks corporation should be separated. He explained, "This incident arose from a personal conflict caused by the spreading of false information and defamation against me," adding, "It cannot be equated with the will or operations of the corporation, and it is unreasonable to terminate the company’s contract because of a CEO’s private conduct."

Nevertheless, he emphasized that interests surrounding the HOKA license were a key background to the incident. Cho asserted, "A minority of internal and external forces colluded in order to strip Joyworks of its exclusive license," and explained, "The internal group premeditated the incident, prepared for audio recordings in advance, and then reported it to the media."

Present at the press conference was Najayong Son, CEO of Pullar, who shared an office and business relationship with the victims. Son claimed, "Before the incident, the victims repeatedly said things like, 'We'll just take a few hits and end it,' and 'I'm going to get beaten,'" and stated that notarized statements and evidence were submitted to the investigative authorities. Former CEO Cho’s side also disclosed KakaoTalk chat logs to support their claim that victims and current or former Joyworks employees had shared internal business materials.

Cho stated, "Large corporations are determined to acquire the brand I have grown more than twentyfold over the past eight years," and "It is hard to believe that those responsible for instigating the assault are not connected to them." He further noted that after the contract was terminated, about 30 companies had contacted Deckers headquarters, saying, "Looking at which company stands to benefit most from the termination should make things clear."

However, former CEO Cho and his representatives did not present direct evidence that any external conglomerate was involved in orchestrating or prompting the assault. He also claimed that the initial broadcast reports were edited in a biased manner. The incident became public through a report by MBC in January of this year. "Only a portion of the audio was intentionally edited, excluding the full context, creating the impression of bullying a subcontractor and baseless violence," he said. The part in the original report referring to a "subcontractor" was later corrected to "competitor" after a ruling by the Press Arbitration Commission.

Attorney Donho Lee explained, "The business relationship between Joyworks and Caveworks had already ended 10 months before the incident, so there was no power imbalance," and, "Through the Press Arbitration Commission, it was confirmed that it was not a 'subcontractor' but a 'competitor,' resulting in a correction report."

Following the reports, it was also pointed out that an MBC reporter contacted Deckers headquarters to ask about contract termination, and that a contract worth about 100 billion won per year was terminated before any official investigative or court decision was made. Former CEO Cho announced plans for further legal action regarding this matter.

Former CEO Cho drew a clear line that, since leaving Joyworks, the press conference was unrelated to a return to management or to the re-signing of the HOKA license. He explained, "For the past eight years, I have grown HOKA together with the nation’s top running and outdoor experts," and lamented, "This incident, which began due to my personal fault, is now threatening the livelihoods of employees and families who have no connection to it."

Cho continued, "I will bear my fault and accept any punishment," but added, "Please do not let my employees suffer the consequences on my behalf."

He also sent a message to Deckers Brands, the owner of the HOKA brand. Cho emphasized, "This is a matter concerning Seonghwan Cho as an individual," and, "Before the truth is revealed, employees should not lose their jobs because of this incident."

"Deckers is also a victim of distorted reports and fake news," he said, "I earnestly ask that you protect our employees with fair and wise judgment."

Meanwhile, Joyworks continues to operate HOKA’s domestic business. The International Centre for Dispute Resolution (ICDR) under the American Arbitration Association has issued an emergency order preventing Deckers from appointing a new Korean distributor. However, this is only a temporary measure to maintain the current state until a final judgment, and Joyworks’ license has not yet been ultimately confirmed.

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