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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Prosecutors have requested a 12-year prison sentence for Cho Hyun-bum, chairman of Hankook & Company, who is on trial for embezzlement and breach of trust amounting to over ₩20 billion (approximately $15 million).
According to legal sources on Tuesday, the final trial for Cho and two others, indicted for violations of the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement), was held at the Seoul Central District Court’s Criminal Agreement Division 23, presided over by Judge Oh Se-yong. Prosecutors demanded a 12-year prison term for Cho and requested the court to impose an additional forfeiture of ₩78.96 million.
For two other executives of Hankook Tire & Technology—Jung, an executive director, and Park, a manager—prosecutors sought two-year prison terms. Under the joint penal provision that punishes both individuals and corporations, the prosecution also requested a ₩200 million fine against Hankook Tire.
In his final statement, Cho admitted his wrongdoing, stating, “Everything is my fault, and I deeply regret my actions. I will work to correct the processes and transform the company into the most transparent global enterprise.” The court is set to deliver its verdict on May 29 at 2 p.m.
Cho was indicted in March 2023 for allegedly providing unfair support to the affiliate company MKT (formerly Hankook Precision Works) between February 2014 and December 2017. During this period, Hankook Tire purchased approximately ₩87.5 billion worth of tire molds from MKT at prices higher than those of other manufacturers, causing an estimated ₩13.1 billion in financial damage to the company.
Prosecutors believe the illicit profits funneled to MKT ultimately benefited Cho and his family, who hold significant shares in the company.
Additionally, from 2017 to 2022, Cho allegedly embezzled and misappropriated ₩7.55 billion in company funds. Prosecutors claim he used personal connections to lend ₩5 billion from MKT’s funds to Lihan, a Hyundai Motor subcontractor, and spent company money on furniture purchases for his private residence.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
