Hankook Tech Chairman Arrested

Hankook's Cho is alleged to have misused company funds to his own family's benefit

The chairman of Hankook Tire and Technology was arrested on charges of embezzlement and illicit inter-affiliate support earlier in March.

Hankook Tire and Technology Chairman Arrested

The Seoul Central District Court issued an arrest warrant for chairman Cho Hyun-bum following the court hearing that began at 3:30 p.m. the previous day, saying that Cho may attempt to destroy evidence.

Prosecutors put in a request for the warrant against Cho for charges of violating fair trade laws, embezzlement and breach of trust.

It is alleged that Cho used corporate funds for his own ends, making personal loans with company money. He is also alleged to have used company funds to buy imported cars and make home improvements.

It is claimed that  Cho allegedly did some 13 billion won ($9.87 million) worth of financial damage to Hankook Tire's affiliate MKT,  also known as Hankook Precision Works.  He is alleged to have funded that company, with which Cho has close ties, despite being aware of its poor business status. According to the prosecutors, the total figure involved in the embezzlement stood at around 20 billion won.

One of the infringements involved Hankook Tire buy MKT moulds at above market prices for three years. The benefit from the overpayment is said to have leached to Cho’s family.

About the author

Ewan has been editor of Retreading Business since 2006 and of Tyre & Rubber Recycling since the magazine was founded. During this period he has become an expert on the global tyre recycling sector. He has many years' experience as an automotive journalist including a period at Tyres & Accessories.

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