It was found that the Hankook & Company shareholder alliance filed a shareholder derivative suit against Chair Cho Hyun-bum, who is being held in custody.

Chairman Cho Hyun-bum of Hankook Tire & Technology. /Courtesy of News1

According to the industry on the 18th, Hankook & Company shareholders filed a shareholder derivative suit seeking that Cho compensate the company about 5 billion won.

A shareholder derivative suit is a lawsuit in which a shareholder, on behalf of the company, pursues a director's liability and recovers damages.

The shareholder alliance argued that although Cho was detained and did not perform duties, a large amount of remuneration was received during the detention period, and that this constitutes a breach of duty.

Earlier, on May in the first trial, Cho was sentenced to three years in prison and was taken into custody in court on charges including embezzlement and breach of duty related to Hankook Tire.

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