Hankook confirms prison sentence for executive following embezzlement conviction

Seoul – Hankook Tire & Technology has confirmed that a Seoul central district court has issued a first-instance ruling involving two of its executives in connection with charges of embezzlement and breach of trust.

In a 30 May securities disclosure, Hankook stated that a current executive, identified as "Cho," was sentenced to three years in prison on charges of occupational embezzlement and breach of trust.

As reported by ERJ, Hankook announced in 2023 that its chairman Cho Hyun-bum was under investigation on suspicion of illegal business activities.

Another executive, referred to as “Park,” received an 18-month prison sentence, suspended for three years, along with 80 hours of community service.

The charges against Park include breach of trust and instructing the concealment of evidence.

Although Park was not a registered executive at the time the offences occurred, he is currently serving as an unregistered executive, the company said.

Hankook noted it would take appropriate measures in line with legal procedures and recognised the matter as potentially material for investors.

The ruling is not final and is subject to appeal.

Cho joined Hankook Tire in 1998, subsequently becoming the head of its marketing and business strategy divisions.

In 2018, he was appointed as the CEO of Hankook Tire, leading the company’s large-scale investments in China, Hungary, and the US.

He temporarily stepped down as CEO of Hankook in 2020 following previous charges of illegal business activity.

On 1 Jan 2022, Cho took over as chairman of Hankook & Co as part of a senior management reshuffle.