Hankook Tire and Technology chairman indicted on several charges

Prosecutors indicted Hankook Tire and Technology Chairman Cho Hyun-bum on Monday on several charges including illegal inter-affiliate deals, embezzlement and breach of trust.

Hankook Tire and Technology Chairman Cho Hyun-bum enters the Seoul Central District Court for questioning on March 8. [YONHAP]

Prosecutors indicted Hankook Tire and Technology Chairman Cho Hyun-bum on Monday on several charges including illegal inter-affiliate deals, embezzlement and breach of trust.

The 51-year-old Cho was indicted on the charges of his involvement in Hankook Tire's purchase of overpriced tire molds from its affiliate, Hankook Precision Works, according to the Seoul Central District Prosecutors' Office.

The practice, worth 87.5 billion won ($67.3 million), allegedly inflicted financial losses of around 13 billion won on Hankook Tire. The practice lasted from 2014 to 2017.

Prosecutors suspect the unfair profits obtained by Hankook Precision Works were ultimately pocketed by Cho and his family.

Cho is also suspected of using corporate money for personal use such as lending it to a company of an executive with whom he has close ties, buying imported cars and paying for house repairs.

He allegedly allowed his acquaintances and family members to use corporate cards for personal purposes, such as a family trip, prosecutors said.

Cho also allegedly forced Hankook Precision Works to lend around 5 billion won of the company funds to financially ailing automobile parts maker Leehan, the chief of which Cho had close ties with, prosecutors said.

Prosecutors suspect the amount of Cho's embezzlement and breach of trust reached over 7.5 billion won.

Cho has already been placed under pretrial detention.

BY SARAH CHEA, YONHAP [chea.sarah@joongang.co.kr[