Hankook and Company Chair Cho Hyun-bum has been sentenced to three years in prison for embezzlement and misappropriation of company funds, as well as illicit inter-affiliate trading.

The Seoul Central District Court handed down the sentence Thursday, and Cho was taken into custody right away.

Cho was indicted in May 2023 on allegations of illicit inter-affiliate trading for his involvement in the purchase of overpriced tire molds for Hankook Tire from its affiliate Hankook Precision Works.

The unfair business practice went on from 2014 to 2017 and incurred losses for Hankook Tire of around 13 billion won, or some nine-and-a-half million U.S. dollars, which Cho and his family are believed to have pocketed.

He was also convicted of using billions of won that belonged to the company for personal expenses, such as high-end imported cars and home repairs, as well as using company credit cards for family vacations between 2017 and 2022.

Cho’s crimes are estimated to have cost the company more than seven-point-five billion won.