Hankook Tire CEO Indicted On Bribery Charge, Fraud

Cho Hyun-bum is also suspected of drawing off some 200 Million Won (US $168,415) from Hankook’s affiliated companies according to the prosecutor’s office

Cho Hyun-bum, chief executive of operations at Hankook Tire & Technology Co., has been indicted for taking bribes and misuse of corporate funds.

South Korea’s largest tyre maker by sales, Hankook Tire & Technology’s CEO Cho is suspected of receiving kickbacks from subcontractors worth 600 million won (US $503,778). Cho is also suspected of drawing off some 200 Million Won (US $168,415) from Hankook’s affiliated companies according to the prosecutor’s office.

Previously this year in January, the Seoul office of the National Tax Service filed a complaint, requesting the prosecution into investigating a suspicion that the CEO might have evaded gift tax.

The prosecutors haven’t yet charged Hyun-bum with tax evasion but discovered borrowed name bank accounts which were assumed to be used by Cho, during the investigation. It is believed that he may have used the accounts to receive the pay-off from the company’s money.

Cho claimed to have already made up for the embezzled funds but still received an arrest warrant on him on November 21, stating that his actions were grave. He also serves as the chief operations officer at the holding company of Hankook Tire Group, the Hankook Technology Group.

Recently, Hankook Tires won the IDEA 2019 for its innovative concept tyres with its Hexonic and HLS-23 tyre designs.