Cho Hyun-beom, chairman of Hankook Tire & Technology (Hankook Tire), who is accused of unfair support to affiliates and embezzlement and breach of trust, was indicted on the 27th.
The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jeong-seop) indicted Chairman Cho on charges including embezzlement and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, and violations of the Fair Trade Act.
Chairman Cho is accused of being involved in the process of unfairly supporting Hankook Tire by purchasing tire molds from its affiliate, Hankook Precision Works (MKT), at higher prices than other manufacturers between 2014 and 2017. It was investigated that Hankook Tire suffered a loss of approximately 13.1 billion KRW through this.
The prosecution has been investigating on the grounds that the profits funneled to MKT by Hankook Tire flowed into the hands of Chairman Cho and his family. MKT’s shares are held as follows: Hankook Tire 50.1%, Chairman Cho 29.9%, and his brother Cho Hyun-sik, advisor of Hankook & Company, 20.0%.
Additionally, Chairman Cho is also accused of using company funds between 2017 and 2022 to purchase or lease furniture for his residence and foreign cars. The prosecution has identified the amount embezzled and breached of trust by Chairman Cho to be approximately 7.55 billion KRW.
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