Supreme Court Confirms Prison Sentence for Hankook Chairman Over Embezzlement

The Supreme Court of South Korea has upheld a two-year prison sentence for Hankook & Company Chairman Cho Hyun-bum for embezzling company funds. The ruling confirmed previous findings of misuse of corporate resources and breach of trust. Meanwhile, South Korean stocks have shown resilience, continuing their upward trend despite geopolitical tensions. The KOSPI index reached a new high, reflecting strong trading activity and investor optimism. This article delves into the implications of the court's decision and the current state of the South Korean market.

By Narendra Chaudhary May 8, 2026, 15:02 IST

Supreme Court Ruling on Hankook Chairman

Photo: IANS

Seoul, May 8: On Friday, the Supreme Court upheld a two-year prison sentence for Cho Hyun-bum, the Chairman of Hankook & Company, due to his involvement in the misappropriation and embezzlement of company funds.

The court confirmed the decision made by an appellate court, which found Cho guilty of breach of trust and embezzling approximately 2 billion won (around US$1.36 million), rejecting appeals from both Cho and the prosecution, according to reports from local news sources.

The appellate court had previously determined that Cho misused corporate credit cards for personal expenses, had the company chauffeur serve as a personal aide to his wife, and purchased vehicles under the names of affiliated companies.

Prosecutors alleged that Cho's misappropriation and embezzlement amounted to around 20 billion won.

Initially sentenced to three years, the appellate court reduced Cho's prison term after overturning a lower court's guilty verdict regarding a loan of 5 billion won from MKT, an affiliate, to an auto parts firm, despite knowing about its financial troubles.

In other news, South Korean stocks continued their upward trend for the fourth consecutive session on Friday, recovering from an earlier decline amid escalating tensions in the Middle East. The local currency experienced a significant drop against the US dollar.

After starting the day 1.82 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) closed at a new high of 7,498 points, gaining 7.95 points or 0.11 percent.

Trading volume was robust, with 518.3 million shares exchanged, valued at 40 trillion won (approximately US$30.2 billion), and the number of declining stocks outnumbered advancing ones, 500 to 367.

Domestic institutions and individual investors purchased a net 1.5 trillion won and 4 trillion won, respectively, nearly balancing out foreign net selling, which totaled 5.6 trillion won.

The index has been on a record-setting rally over the past three sessions, driven by significant gains in AI-related stocks and optimism surrounding a potential peace agreement between the U.S. and Iran in the Middle East.