Prosecutors have sought an arrest warrant for Cho Hyun-beom, former head of Hankook Tire & Technology, on charges of receiving around 700 million won in bribes from subcontractors and affiliates. Cho is the son-in-law of former President Lee Myung-bak (MB).
On Nov. 19, the Seoul Central District Prosecutors' Office said it has requested an arrest warrant for Cho on charges of breach of trust, embezzlement and violation of the law on criminal proceeds.
Cho is suspected of taking kickbacks from subcontractors and affiliates every month for nearly a decade and pocketing at least 700 million won. He reportedly extorted 500 million won from subcontractors as the price for the delivery and regularly diverted 200 million won from affiliates.
The prosecution suspects that through the investigation of those involved, Cho illegally received the money under borrowed names and used it for private purposes.
During a recent prosecution's investigation, Cho explained to the effect that he had returned all the damages, but the prosecution requested an arrest warrant because it believes Cho is guilty of receiving payment from subcontractors using his business relationship.
Prosecutors are known to have found clues regarding Cho's breach of trust in the course of their investigation based on the case filed by the National Tax Service.
The Seoul Regional Tax Office conducted a special tax investigation into Hankook Tire in July last year, and later switched to a tax-crime investigation. Based on the findings, the National Tax Service filed a complaint with the prosecution in January over the alleged tax evasion of Hankook Tire.
