Hankook Tire chairman Cho indicted

Arrested on 6 March 2023, Hankook Tire & Technology chairman Cho Hyun-bum has now been indicted on charges of illicit inter-affiliate trading, embezzlement and breach of trust.

Reporting yesterday’s indictment, Yonhap News Agency shares that Seoul Central District Prosecutors Office charged Cho for his involvement in Hankook Tire’s “purchase of overpriced tyre moulds” from its affiliate, Hankook Precision Works Co. These transactions took place between 2014 and 2017 and have been valued at KRW 87.5 billion (£54.9 million), with Hankook Tire allegedly paying around KRW 13 billion more than it should have.

“Prosecutors suspect the unfair profits obtained by Hankook Precision Works eventually were pocketed by Cho and his family,” writes Yonhap News Agency, adding that prosecutors also suspect that Cho directed billions of won of corporate to personal use, including the purchase of luxury cars, travel and home repairs between 2017 and 2022. They further allege that Cho “forced Hankook Precision Works” to lend around KRW 5 billion of company funds to struggling automotive parts manufacturer Leehan Corporation, whose chief executive has close ties with Cho.

Prosecutors suspect the cost of Cho’s embezzlement or breach of trust exceeds KRW 7.5 billion (£4.7 million). Yonhap states that the Hankook Tire chairman has been “placed under pretrial detention.”