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Hankook Tire executive indicted over alleged unfair intra-affiliate trading

An executive of the nation's leading tiremaker, Hankook Tire & Technology Co., was indicted Thursday for his alleged involvement in unfair intra-affiliate trading.

The executive in charge of purchase, surnamed Jeong, allegedly colluded with Chairman Cho Hyun-bum in Hankook Tire's purchase of overpriced tire molds from its affiliate, Hankook Precision Works Co., according to the Seoul Central District Prosecutors Office.

The prosecution also indicted the corporate body as it broadens an investigation into Cho and his family.

The unfair business practice that lasted from 2014 to 2017 was allegedly aimed at helping the company solidify its presence in the market, officials said.

Prosecutors also suspect the unfair profits obtained by Hankook Precision Works eventually were pocketed by Cho.

The investigation comes after the antitrust regulator decided to impose a fine of over 8 billion won (US$6.5 million) on Hankook Tire.

Separately, prosecutors are also investigating Chairman Cho over embezzlement allegations.

Source: Yonhap News Agency

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