Hankook boss given three years in jail

The chairman of the board of Hankook & Company, Cho Hyun-bum, who was accused of abuse of trust and embezzlement of funds in the amount of about $14 million, was sentenced to three years in prison and taken into custody in court, reports Business Korea.

According to the publication, the Seoul Central District Court ruled that with Cho's imprisonment, the previous bail decision is canceled. The court sentenced the head of Hankook to six months in prison for abuse of trust and to two years and six months in prison for other charges.

In March 2023, Cho was accused of purchasing molds for Hankook Tire from Hankook Precision Works at a price higher than that of other manufacturers from February 2014 to December 2017, with his assistance, for about $63 million. Both companies are part of the Hankook group, and Cho and his older brother are their largest shareholders.

The prosecution believes that the deal resulted in Hankook Tire suffering a loss of $9.5 million, and the proceeds received by Hankook Precision Works went to Cho and his family members.

Cho is also accused of embezzling and misappropriating company funds in the amount of about $5.5 million from 2017 to 2022. According to the prosecution, he lent $3.5 million from Hankook Precision Works to Rihan, a supplier to Hyundai Motors, without proper collateral, using personal connections. Additionally, it was found that he used company funds to purchase furniture for his personal residence.

Photo: Busnesskorea.co.kr