Prosecutors Summon Geukdong Yuhwa CEO Over 'Hankook Tire Unfair Trade Allegations'

The prosecution investigating allegations of unfair transactions between Cho Hyun-beom, chairman of Hankook Tire & Technology, and Jang Seon-woo, CEO of Geukdong Yuhwa, has summoned CEO Jang.

Seoul Central District Prosecutors' Office, Seocho-gu, Seoul. / Photo by Jinhyung Kang aymsdream@

According to the legal community, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jeong-seop) summoned CEO Jang on the 9th for questioning as a suspect.

The prosecution is reportedly questioning CEO Jang about the reasons for providing vehicles and other items to Chairman Cho's side, as well as the circumstances under which Wooham Construction won the contract for the construction ordered by Hankook Tire.

Wooham Construction is a company established by CEO Jang in 2010. Based on the friendship between CEO Jang and Chairman Cho, the company rapidly expanded its business by winning contracts such as the third expansion of Hankook Tire's Hungary plant in 2013 and the construction of the research and development center 'Hankook Tire TechnoDome' in 2014.

Regarding this, the prosecution suspects that when Wooham Construction won construction orders placed by Hankook Tire, it provided kickbacks or other special favors to Chairman Cho in return. Additionally, while investigating the unfair transaction allegations, the prosecution uncovered clues of personal corruption such as breach of trust and embezzlement by CEO Jang, leading to a search and seizure of his residence and related offices in April.

On the 31st of last month, Jang In-woo, CEO of Gojin Motors and elder brother of CEO Jang, who is suspected of providing vehicles to Chairman Cho's side at CEO Jang's request, was summoned as a suspect and questioned about the circumstances of the vehicle provision.