Prosecutors File Additional Charges of Breach of Trust Against Cho Hyun-beom, Chairman of Hankook Tire
Cho Hyun-bum, chairman of Hankook Tire & Technology (Hankook Tire), has been additionally indicted for unfair transactions with Woam Construction and others.
The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jeong-seop) announced on the 21st that Chairman Cho was indicted without detention on charges including breach of trust and bribery on the 19th.
Jang Seon-woo, CEO of Geukdong Yuhwa, who provided money and goods to Chairman Cho in exchange for business favors, and Kim, who operates an automobile parts manufacturing company, were also indicted together on charges of bribery and breach of trust. Jang In-woo, CEO of Gojin Motors and older brother of Jang Seon-woo, was indicted without detention on charges of breach of trust.
Chairman Cho is suspected of awarding construction projects to Woam Construction through a "kickback" scheme and receiving illicit payments in return. Woam Construction was established in 2010 by CEO Jang Seon-woo. Based on the friendship between CEO Jang and Chairman Cho, the company rapidly expanded its business by securing contracts such as the third expansion of Hankook Tire's Hungary factory in 2013 and the construction of the research and development center "Hankook Tire Techno Dome" in 2014.
CEO Jang In-woo is accused of providing a car owned by Gojin Motors to Chairman Cho at the request of his younger brother, CEO Jang Seon-woo. Gojin Motors is the official domestic dealer of Audi. The prosecution also indicted four individuals, including the two companies and their CEOs, on charges of violating the Framework Act on the Construction Industry related to construction projects ordered by Areum Dentistry, a medical device manufacturer owned by Chairman Cho, and awarded to Woam Construction.
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Three construction companies and six executives who participated as accomplices in the bidding were summarily indicted. Chairman Cho is currently on trial after being detained and indicted in March on charges of embezzlement and breach of trust involving approximately 20 billion KRW related to unfair support of affiliates.
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