The Supreme Court's final ruling on Cho Hyun-bum, chairman of Hankook & Company Group, who faces embezzlement and breach of trust charges, will come on the 8th.
The Supreme Court's First Division (Presiding Justice Ma Yong-ju) will open the sentencing hearing that day in the appeal of Chairman Cho's case, who is charged with violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement and breach of trust).
Chairman Cho was indicted in March 2023. ▲ He is accused of providing 13.1 billion won in undue support by paying higher prices than other manufacturers when Hankook Tire purchased tire molds worth about 87.5 billion won from affiliate MKT between February 2014 and December 2017 ▲ of the unlawful lending of 5 billion won to auto parts maker Lihan ▲ of privately using a chauffeur and corporate credit cards ▲ and of receiving an apartment and a vehicle as the price for improper solicitation and providing them free of charge to associates.
In the first trial in May last year, the court sentenced Chairman Cho to three years in prison. Cho had been sentenced in November 2020 to three years in prison, suspended for four years, and was under probation at the time of indictment. The court imposed six months in prison for crimes committed before the prior final judgment, considering what would have been imposed if sentenced together then, and two years and six months for crimes committed after the final judgment.
The first trial court found that Chairman Cho's unlawful lending of 5 billion won to Lihan, his private use of a corporate card, and his free provision of an apartment and a vehicle constituted breach of trust. However, it did not recognize the charges regarding transactions between Hankook Tire and MKT.
In the second trial last December, Chairman Cho's sentence was reduced to two years in prison. The appellate court found him not guilty of the alleged unlawful lending of 5 billion won to Lihan. It also found him not guilty, as in the first trial, of the charge of providing undue support to MKT.
The appellate court maintained the original sentence of six months in prison for crimes committed before the final judgment and imposed one year and six months for crimes committed thereafter.
Chairman Cho was detained and indicted in March 2023 and was released on bail in November of the same year. Then, in May 2025, when the first trial court sentenced him to three years in prison, it revoked his bail and took him into custody in the courtroom.
The second trial reduced the sentence by one year but kept him in custody. The appellate court said, "Allowing an executive who pursued private interests using company assets to return to the front lines of management would negatively affect corporate culture improvement and sustainability."
In his final statement at the second trial's closing hearing in November last year, Chairman Cho said, "I was foolish," and added, "I sincerely apologize to the court, my colleagues, the company's shareholders, and the board of directors." While incarcerated, Chairman Cho remained CEO of Hankook & Company until he resigned in February. He continues to serve as group chairman.
Hankook & Company said Chairman Cho resigned to avoid burdening the company as his conflict with his older brother, former Hankook & Company adviser Cho Hyun-sik, continued. Earlier, the Hankook & Company shareholders' alliance filed a shareholder derivative suit claiming Chairman Cho received high pay while in custody and should compensate the company about 5 billion won. Cho, the former adviser, is also said to be part of the alliance.
Chairman Cho is the second son of Hankook & Company Honorary Chairman Cho Yang-rae and the son-in-law of former President Lee Myung-bak.