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Cho Hyun-bum, Chairman of Hankook Tire & Technology (Photo: Yonhap News) |
[Alpha Biz= Paul Lee] Seoul, South Korea – The Seoul High Court has reduced the sentence of Cho Hyun-bum, Chairman of Hankook & Company, from three years to two years in prison. Cho had been convicted in the first trial on charges including embezzlement, breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, and violations of the Monopoly Regulation and Fair Trade Act.
In the second trial, the court partially overturned the first instance ruling, acquitting Cho of certain embezzlement claims related to a 5 billion KRW loan to a Hyundai Motor supplier, while upholding convictions for personal use of company vehicles and corporate credit cards.
The court noted that while some transactions involved substantial company funds, Cho did not profit personally and had followed reasonable procedures, giving room for management discretion. The court also criticized the breach-of-trust actions, emphasizing the importance of corporate governance and the ethical responsibilities of executives.
The first-instance ruling regarding unfair transactions between Hankook Tire and its affiliate, Korean Precision Works (MKT), was upheld, with both courts finding no sufficient evidence of breach of trust due to management rationale and vertical integration benefits.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
