Hankook Tire and Technology chairman arrested on multiple charges

Hankook Tire and Technology Chairman Cho Hyun-bum enters the Seoul Central District Court for interrogation on his alleged crimes on Wednesday. [YONHAP]

The chairman of Hankook Tire and Technology was arrested on charges of embezzlement and illicit inter-affiliate support on Thursday.

The Seoul Central District Court issued an arrest warrant Thursday morning for chairman Cho Hyun-bum following the court hearing that began at 3:30 p.m. the previous day, saying that Cho may attempt to destroy evidence.

Prosecutors put in a request for the warrant against Cho on Monday for charges of violating fair trade laws, embezzlement and breach of trust.

The tiremaker's chairman allegedly used corporate money for personal use such as lending it to a company of an executive he has close ties with, buying imported cars and paying for house repairs.

Cho allegedly inflicted some 13 billion won ($9.87 million) worth of financial damage to Hankook Tire's affiliate MKT, which now goes by the name of Hankook Precision Works, by funding the said company, with which Cho has close ties, despite being aware of its poor business status. The total amount of his embezzlement mounts to 20 billion won, according to prosecutors.

Cho's fair trade law infringement charge includes having Hankook Tire buy MKT's tire molds at prices above the market price from 2014 to 2017. Prosecutors claim that the profit from these behaviors leaked to the chairman's family.

BY SOHN DONG-JOO [sohn.dongjoo@joongang.co.kr]