Hankook Tire chairman arrested

On 9 March, Cho Hyun-bum, chairman of Hankook Tire, was arrested. The charges against him include illicit inter-affiliate trading, embezzlement and breach of trust. According to Yonhap News Agency, the amount involved in Cho Hyun-bum’s embezzlement and breach of trust may exceed 20 billion won (about £12.7 million; €14.3 million). It is reported that the Seoul Central District Court in South Korea issued an arrest warrant for Cho Hyun-bum in order to safeguard evidence after a court hearing on 8 March.

The Seoul Central District Court said Cho Hyun-bum may have used many of Hankook Tire’s company funds for personal purposes.

Meanwhile, Cho Hyun-bum was accused of unfairly supporting a subsidiary of Hankook Tire. It is reported that Hankook Tire is suspected of purchasing overpriced tyre moulds from affiliated company Hankook Precision Works Co. In November 2022, Hankook Tire was fined by the antitrust regulator (Fair Trade Commission – FTC) on similar charges. The fine at that time was about 8 billion won (about £5 million; €5.7 million).

In addition, South Korean law enforcement agencies also accused Cho Hyun-bum of forcing a Hankook Tire subsidiary to lend 13 billion won (approximately £8.2 million; €9.3 million) to Leehan Corp., an auto parts manufacturer close to him, between 2020 and 2021.