[비즈한국] It has been confirmed that former Taekwang Group Chairman Lee Ho-jin recently received a final ruling in his favor in a lawsuit filed against his sister, Lee Jae-hoon, to recover their late father’s "hidden inheritance." However, the amount the former chairman is to recover from his sister is approximately 15.3 billion won, a significant reduction from the 40 billion won recognized in the first trial.
The Third Division of the Supreme Court (Presiding Justice Lee Sook-yeon) dismissed both appeals filed by the parties on the 9th regarding the damages suit brought by former Chairman Lee Ho-jin against his sister, Lee Jae-hoon. With this, the appellate court's ruling—ordering Jae-hoon to pay Lee 15.35 billion won plus delay interest—has been finalized. Previously, the appellate court had partially overturned the first trial's ruling, which had ordered Jae-hoon to pay 40 billion won and delay interest.
Regarding Jae-hoon’s claim that the will was invalid, the Supreme Court ruled that "there were no errors in the appellate court’s ruling that would have influenced the outcome, such as misinterpreting legal principles regarding the interpretation, validity, and execution of a will, or exceeding the limits of the principle of free evaluation of evidence by violating laws of logic and experience." The court also rejected the argument from former Chairman Lee’s side seeking a higher compensation, stating, "There were no errors affecting the judgment, such as missing issues, lack of reasoning, or violation of the duty to clarify, nor did the court exceed the limits of the principle of free evaluation of evidence."
The dispute between the two began with the will left by their late father, former Chairman Lee Im-yong, upon his passing in 1996. The will stated, "Assets such as real estate and stocks shall be inherited by my wife and sons, excluding my daughters; if any remaining assets exist, they shall be handled according to the wishes of former Chairman Lee Ki-hwa." The late Lee Ki-hwa was the maternal uncle of the two siblings and was appointed as the executor of Lee Im-yong’s estate, overseeing the distribution of the inheritance.
The issue concerned the "remaining assets" not listed in the inheritance. In 2010, during investigations into Taekwang Group’s slush funds, and in 2011, during a National Tax Service tax audit, stocks and bonds held under false names by former Chairman Lee Im-yong were discovered. Around this time, the former chairman's mother, who had been managing the family's hidden assets, delivered the bonds to Jae-hoon. Former Chairman Lee Ho-jin
requested the return of these bonds in 2012, but Jae-hoon refused.
Former Chairman Lee Ho-jin filed a lawsuit in 2020 to recover his inheritance. He argued that according to the "remaining assets" provision, he alone inherited the hidden bonds as the son, and that they had been entrusted to Jae-hoon through his mother (an assistant to possession) and should be returned. Conversely, Jae-hoon argued that the will was invalid because it forced compliance with the executor's wishes rather than the father's independent intent, thus violating the "personal nature" of a will.
The first trial ruled in 2023 that Jae-hoon should pay 40 billion won to the former chairman. At the time, the court determined, "The will regarding the remaining assets delegated the decision-making of certain details to Lee Ki-hwa without any restrictions, making it invalid as it violates the personal nature of the will." However, the court ruled that because Lee had effectively possessed and managed the hidden bonds through his mother after his father’s death, and because there had been no objection to the inheritance rights within the 10-year statute of limitations, he had legally inherited them.
The appellate court partially overturned this, ordering Jae-hoon to pay 15.35 billion won. While the court still recognized Lee’s ownership of the hidden bonds, it differed in its reasoning and the amount of damages. It found that the portion of the will defining the "remaining assets" did not violate the personal nature of the will and was valid, and that Lee had rightfully acquired the bonds through the execution of the will. However, it only recognized damages proven by evidence, not the full 40 billion won.
The appellate court stated, "The evidence submitted by the plaintiff is insufficient to prove that the amount of the bonds exceeded 15.35 billion won to reach 40 billion won, and there is no other evidence to support this." Previously, their mother, who had managed the hidden bonds, had demanded their return from Jae-hoon via certified mail, requesting the return of "bond certificates with a total face value of 40 billion won."