 |
Photo = Yonhap news |
[Alpha Biz= Paul Lee] A South Korean court is set to deliver a first-instance verdict on May 29 in the high-profile embezzlement and breach of trust case involving Cho Hyun-bum, chairman of Hankook Tire & Technology.
The Seoul Central District Court's Criminal Division 23 (Presiding Judge Oh Se-yong) will hand down its ruling at 2 p.m. KST. Cho has been charged with violations of the Act on the Aggravated Punishment of Specific Economic Crimes, including embezzlement and breach of trust.
Prosecutors allege that between 2014 and 2017, Hankook Tire unfairly supported its affiliate, MKT (Hankook Precision Works), by purchasing tire molds worth KRW 87.5 billion (approx. USD 64 million) at prices higher than those offered by competitors. The scheme allegedly caused a loss of KRW 13.1 billion (approx. USD 9.6 million) to Hankook Tire, while funneling profits to MKT, ultimately benefiting Cho and his family.
Additional charges against Cho include the unauthorized loan of KRW 5 billion (approx. USD 3.7 million) in company funds to a company operated by an acquaintance, and the misappropriation of over KRW 2 billion (approx. USD 1.5 million) for personal use.
Cho was first indicted and detained in March 2023. In July 2023, prosecutors filed further charges, claiming that Cho awarded inflated construction contracts to Wooam Construction, a firm established by Jang Sun-woo, CEO of Kukdong Oil & Chemicals, in exchange for illicit benefits.
Although Cho was granted bail in November 2023 after a renewed detention order expired, he has been standing trial without custody since.
At the final hearing held on February 27, prosecutors demanded a 12-year prison sentence for Cho and sought the forfeiture of KRW 78.96 million (approx. USD 58,000). They also requested two-year prison terms for two other Hankook Tire executives, and a KRW 200 million (approx. USD 148,000) fine against the company itself.
The court’s ruling is expected to have significant implications for corporate governance and accountability in South Korea’s business community.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
