[News Space=Reporter seungwon lee] It has been claimed that Mr. Cho, the domestic distributor of the famous running shoe brand Hoka, called subcontractors to an abandoned building in Seongsu-dong, Seoul and indiscriminately assaulted them.

As the recording of the situation at the time and the victim's statement were released through JTBC and MBC reports, the owner risk of Joyworks & Co. (309930) became a reality, and the repercussions are spreading.

An incident occurred in which Mr. Cho, the head of Hoka's domestic distributor, summoned subcontractors to a closed church building in Seongsu-dong, Seoul, and indiscriminately assaulted them for over five minutes. The victims were diagnosed with fractured ribs and concussions, and the recording clearly captured the sound of the blows, along with repeated questions like, "Do you know me?" Cho's side countered that the assault occurred "during the subcontractor's warning about spreading false information," and claimed the damages would require four weeks of recovery. However, attention is focused on the outcome of the investigation.

Incident Details: A Movie-Like Abandoned Building

On December 16, 2025, CEO Cho summoned subcontractors to the third floor of a church slated for demolition in Seongsu-dong, saying, "Let's have a meal and talk." According to a recording, the conversation began with a discussion of the weather, but soon escalated into a physical assault after a warning that "your voice might get louder." The assault continued for over five minutes, with Cho repeatedly asking, "You don't know me?" and slapping and punching the subcontractors.

The victim fled with a bloody face, and CEO Cho later visited the employee's office, threatening him verbally and through text messages, telling him to "keep your mouth shut." The subcontractor filed a police complaint against CEO Cho, charging him with assault and coercion.

Joyworks & Co. Corporate Background: From Furniture to Running Distribution Powerhouse

Joyworks & Co., formerly known as Ohheim & Company, was a KOSDAQ-listed furniture and interior design company. However, in September 2025, it changed its name to Joyworks after acquiring its Hoka offline retail division (8 stores nationwide: Starfield COEX, Lotte Department Store, etc.) for KRW 25 billion. The Hoka retail division recorded KRW 33 billion in sales and KRW 5 billion in operating profit in 2024, and is expected to grow to KRW 20 billion in sales in the first half of 2025. It is currently expanding its portfolio of premium running brands, including Saucony and Satisfy.

Despite strong performance, owners face risks

Cumulative sales from January to October 2025 increased by 34% year-on-year, and sales in the first month of the Hoka Retail transfer (October 2025) increased by 19%. CEO Cho Sung-hwan and other executives purchased 406,315 shares (approximately KRW 600 million, based on a per-share price of KRW 1,950) on the stock exchange in December 2025, emphasizing that the stock price "did not reflect the intrinsic value," demonstrating responsible management.

The current stock price is around 2,050 won, resulting in a market capitalization of approximately 50 billion won. The largest shareholder holds a 13.03% stake (3,190,358 shares). However, concerns are being raised about increased sales volatility due to the impact on the running community's brand image and the trend toward ethical management.

Stock Market Outlook: Will Negative Factors Grow?

Although stock price volatility is limited immediately following the incident, downward pressure is expected due to the investigation results and the possibility of a brand boycott, given the nature of small-cap stocks with a market cap of 50 billion won.

A securities industry insider analyzed, "While the global growth of Hoka (surge in sales from parent company Deckers HOKA) and the improved performance are positive factors, if the owner risk from this incident continues, there is a high possibility of further downward movement due to worsening investor sentiment." They added, "The company's recovery plan and the results of the police investigation are expected to determine the direction of the stock price."