South Korea’s Supreme Court on Friday has confirmed a two-year prison sentence for Cho Hyun-bum, chair of auto parts and tire-maker Hankook & Co., after finding him guilty of the embezzlement of company funds and breach of trust.
The top court finalized a lower court ruling sentencing Cho to two years in prison for violating the Act on the Aggravated Punishment of Specific Economic Crimes, including embezzlement and breach of trust.
Prosecutors had alleged that Cho was involved in misappropriation and embezzlement totaling about 20.8 billion ($14.2 million). However, the courts found Cho guilty of only a portion of the charges, recognizing roughly 2 billion won in criminal liability while acquitting him on several major allegations.
Among the charges dismissed was an accusation that Cho had loaned 5 billion won from affiliate company MKT to auto parts-maker Leehan for personal purposes, despite being aware of its poor financial status. The appeals court overturned the lower court's guilty ruling on that count.
Courts also acquitted Cho of allegations that between 2014 and 2017 he caused Hankook, a key subsidiary of Hankook & Co., to purchase tire molds worth about 887.5 billion won from MKT at inflated prices, causing losses of 13.1 billion won to Hankook Tire while benefiting MKT by the same amount.
Meanwhile, both lower courts found Cho guilty on several counts involving the misuse of company money for personal expenses, including paying for moving expenses and furniture purchases with corporate money. He was also found guilty of using company funds to pay the salary of a chauffeur for his wife and privately using company vehicles.
The courts found Cho guilty of breach of trust in connection with allegations that an acquaintance provided free apartments to individuals designated by Cho in exchange for business favors. In addition, Cho was convicted of using affiliate corporate cards to cover about 580 million won in personal expenses incurred by himself and those close to him.
Friday’s ruling came over three years after Cho was first arrested and charged by prosecutors in May 2023. He was granted bail later that year upon posting a 500 million won bond, but was rearrested in May 2025 following a district court's three-year prison sentence. That sentence was subsequently reduced to two years by an appeals court.
Cho had previously been convicted in a separate bribery and embezzlement case tied to allegations that he accepted kickbacks from a business partner while serving as head of Hankook Tire. In that case, he was handed a suspended sentence, which was later upheld on appeal.
sahn@heraldcorp.com
