조현범 한국타이어 회장 (사진 = 연합뉴스)

[Alpha Biz=(Chicago) Reporter Kim Jisun] An arrest warrant has been sought for Hankook Tire & Technology Chairman Cho Hyun-beom, who is accused of unfair support and embezzlement of affiliates. 

 

The Fair Trade Investigation Department of the Seoul Central District Prosecutors' Office said on the 6th that it has sought an arrest warrant for Chairman Cho on charges of violating the Fair Trade Act and embezzlement and breach of trust under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes.

Chairman Cho Hyun-beom is suspected of illegally supporting Hankook Tire by buying tire molds manufactured by its affiliate MKT (Korea Precision Works) between 2014 and 2017 at a higher price than other manufacturers. He is also accused of spending billions of won on personal home repairs and foreign car purchases. The amount of embezzlement and breach of trust identified by the prosecution is known to reach 20 billion won.

MKT is a Hankook Tire family company with 50.1% stake in Hankook Tire, 29.9% held by Chairman Cho, and 20% held by Cho Hyun-sik, Hankook & Company Advisor. From 2016 to 2017, more than 10 billion won in dividends, including 6.5 billion won for Chairman Cho and 4.3 billion won for Adviser Cho, were allocated to the family of the head of the company.

In addition, suspicions of embezzlement and breach of trust are also discussed. Cho is suspected of illegally lending about 13 billion won in MKT funds to Park Ji-hoon, head of Hyundai Motor's partner Lihan.

Prosecutors raided Cho's home, Hankook Tire's headquarters and affiliates last month and questioned Cho Hyun-bum as a suspect.

 

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