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Cho Hyun-bum, Chairman of Hankook Tire & Technology. (Photo: Yonhap News) |
[Alpha Biz= Kim Jisun] SEOUL, November 18 — A coalition of shareholders at Hankook & Company has filed a shareholder derivative lawsuit against Chairman Cho Hyun-bum, who is currently in custody, seeking approximately KRW 5 billion in damages.
A derivative suit allows shareholders to pursue claims on behalf of the company against directors for breaches of duty. The shareholder group argues that Cho committed a breach of trust by receiving substantial compensation during his detention despite being unable to perform his duties.
Cho was sentenced in May to three years in prison on charges including embezzlement and breach of trust related to Hankook Tire & Technology and was taken into custody immediately after the ruling.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
