The chief of Hankook Tire has been indicted on charges of illicit inter-affiliate trading, embezzlement and breach of trust.

The Seoul Central District Prosecutors' Office on Monday charged Chairman Cho Hyun-bum for his involvement in Hankook Tire's purchase of overpriced tire molds from its affiliate, Hankook Precision Works.

The unfair business practice that lasted from 2014 to 2017 allegedly inflicted financial losses of around 13 billion won, or over nine-point-eight million U.S. dollars, on Hankook Tire, which is believed to have been pocketed by Cho.

He is also suspected of using billions of won in corporate funds for personal expenses, such as high-end imported cars and home repairs as well as using company credit cards for family vacations.

Prosecutors suspect the amount of Cho's embezzlement and breach of trust to be over seven-point-five billion won.