Joyworks & Co., the Korean distributor of running shoe brand HOKA that has surged in popularity amid the country's running boom, has issued an official apology regarding allegations that CEO Cho Sung-hwan assaulted employees of a subcontractor.
According to industry sources on Monday, Joyworks & Co. stated, "Physical confrontation cannot be justified for any reason," adding that "CEO Cho Sung-hwan, Joyworks (the major shareholder of Joyworks & Co.), and Joyworks & Co. all recognize the gravity of the matter."
"CEO Cho is faithfully cooperating with ongoing legal proceedings and has conveyed his apology to the parties involved while responsibly carrying out all necessary procedures, including negotiations for an amicable resolution," the company said. "He deeply regrets causing social controversy."
The company added, "We will continue to take necessary management and response measures to ensure that business stability and stakeholder trust are not compromised. We once again deeply apologize to everyone who was concerned by this incident."
Cho is alleged to have summoned subcontractor employees to an abandoned church building in Seongsu-dong, Seoul, where he reportedly assaulted and verbally abused them. According to reports, audio recordings revealed that Cho called them to the abandoned building, repeatedly asking "Do you know who I am?" and "What do you know about me?" while raising his voice, and slapping them. The victims reportedly received medical diagnoses including rib fractures and concussions.
Cho's side maintains that the subcontractor employees had been spreading false information, and that mutual physical confrontation occurred during efforts to stop them. The company explained that Cho also received a diagnosis requiring four weeks of treatment.
As the controversy spread rapidly online, consumers have begun calling for a boycott of HOKA products.
HOKA has shown steep growth since Korea's running boom took off. Joyworks & Co.'s cumulative sales from January to October 2025 increased 34 percent compared to the same period last year.