LD Carbon, a South Korean environmental materials company, has filed a criminal complaint against its former chief executive and two senior finance officials, accusing them of embezzling corporate funds and misusing government subsidies through falsified payments and internal approvals.

The filing, submitted to the Suseo Police Station in Seoul and accessed by Tyre Trends magazine, names former CEO Hwang yong-kyung (YK), Chief Financial Officer Lee Chung-jin and Finance Manager Han Seung-yeon (Sara) as suspects in an alleged scheme that spanned from 2022 to 2023. 

At the centre of the complaint is what the company describes as a ‘bonus recycling’ scheme designed to create off-the-books cash. Following the complaint, a probe has been initiated. 

After LD Carbon raised about KRW 18.5 billion (approximately USD 12.5 million) in Series A funding in 2022, Hwang allegedly instructed selected employees to accept inflated bonuses or salary payments and return portions of the money in cash. 

The approach, according to the filing, was framed as a way to manage tax exposure while enabling payments that could not be processed through formal corporate channels.

Internal documents cited in the complaint show unusually large bonus allocations in the tune of tens of millions of won per employee, which is far exceeding typical compensation levels. 

The payments were approved through standard company processes with sign-offs from the finance department including the CFO, the filing states.

The complaint includes call recordings and internal communications in which employees were allegedly directed to return funds as well as bank transaction records showing the movement of money through employee accounts.

Broker fee dispute tied to fundraising
The company alleges that part of the diverted funds was used to pay a broker commission linked to the 2022 fundraising round.

According to the filing, a third-party intermediary involved in introducing investors was promised a success fee of roughly 2.5 percent of total funds raised, equivalent to about 137.5 million won. 

While the individuals allegedly agreed to cover the fee personally, the complaint claims the payment was instead funded using company money routed through the bonus scheme.

Messages cited in the complaint suggest internal discussions about dividing the fee among executives, indicating awareness that the expense was not a legitimate corporate liability.

Government subsidies allegedly misused
Beyond corporate funds, the complaint accuses the executives of improperly using government subsidies provided for environmental export and development projects.

LD Carbon participated in programmes administered by state-affiliated agencies to support overseas expansion of eco-friendly businesses. Under South Korean law, such subsidies must be used strictly for designated purposes.

The filing alleges that funds were instead diverted to unrelated expenses, including payments to affiliated or controlled businesses, costs for unrelated products such as golf balls and consumer goods and marketing and vendor payments supported by fabricated invoices.

Supporting materials include internal approval documents, emails and supplier invoices, which the company claims were falsified to justify the expenditures.

Potential legal violations
The allegations, if substantiated, could constitute multiple criminal offences under South Korean law, including occupational embezzlement, criminal breach of trust and violation of the Subsidy Management Act.

Under applicable statutes, misuse of government subsidies can carry penalties of up to five years in prison or significant fines with additional exposure under broader financial crime provisions.

The complaint alleges that the three individuals acted in collusion, emphasising how their roles complemented one another within the organisation’s financial structure. It points to Hwang, in his capacity as CEO, as having overarching authority and control over the organisation’s funds, thereby setting the strategic and operational direction.

It further highlights Lee’s position as CFO, noting his responsibility for financial oversight, governance and ensuring the integrity of financial management processes. Within this framework, Lee is portrayed as a key figure in monitoring and validating the movement and use of funds.

Finally, the complaint identifies Han, the finance manager, as the individual responsible for executing transactions. In this role, Han is described as operationalising financial decisions, thereby completing the chain of actions that, according to the complaint, demonstrates coordinated conduct among all three parties.

Internal disruptions 
Separate company records reviewed indicate that multiple employees resigned during and after the period in question. While there is no confirmed causal link between these departures and the alleged misconduct, the timing has drawn attention. 

Some employees named in the complaint appear to have been involved in processing or receiving the disputed payments, suggesting that certain staff members may have acted as intermediaries, knowingly or otherwise, within the alleged scheme.

At present, the matter remains at the complaint stage and it is unclear whether authorities have formally initiated a criminal investigation or undertaken actions such as issuing summons or conducting searches. 

Also, Korea Environmental Industry and Technology Institute (KEITI) conducted audit on LD Carbon on 24 April 2026, which will soon to be followed with further investigation and preliminary disposition if wrong use of govt fund is confirmed.

The case underscores growing regulatory and public scrutiny over how companies manage government-backed funding alongside private investment in South Korea’s innovation-driven economy. 

In recent years, regulators have intensified oversight, particularly in sectors linked to sustainability and advanced manufacturing. The outcome of the case may ultimately hinge on how authorities interpret the intent behind the transactions and whether internal approval mechanisms are found to have concealed or facilitated the alleged misuse of funds.

Comments (0)

ADD COMMENT

Link Copied!

The Tire Industry Association (TIA) has revealed the outcome of its 2026 Board of Directors election, with four industry figures selected to serve three-year terms. Kelsey Jarman, Director of Sales for off-the-road tyres at ESTI, and Jason Rook, President and CEO of ITDG, are joining the board for the first time. Craig Stevens, General Manager of Big Horn Tire, and Adam Moffatt, Executive Director of the Tire Dealers Association of Canada, who also serves the Ontario Tire Dealers Association, have both been re-elected as returning members.

The association expressed enthusiasm for the leadership, perspectives and experience these individuals will contribute as they help steer TIA and advance the tyre industry. The newly elected and re-elected board members are scheduled to be formally inducted on 2 November 2026 during TIA’s Annual Membership Meeting, which will take place at Planet Hollywood Resort & Casino in Las Vegas. The association extended its congratulations to all four individuals.

Comments (0)

ADD COMMENT

Link Copied!

Dunlop Tyre Europe GmbH (DUNLOP) has unveiled a comprehensive winter and all-season tyre portfolio for the 2026 season, targeting European drivers who face unpredictable cold-weather conditions. The range covers high-performance passenger car and SUV applications, blending dependable winter traction with year-round versatility. The lineup includes the DUNLOP WINTER, WINTER SPORT 5, SP WINTER SPORT 4D and SP WINTER SPORT 3D winter tyres, alongside the DUNLOP ALL SEASON 2 for those seeking a single year-round solution.

The DUNLOP WINTER addresses drivers prioritising balanced low-temperature performance. Its directional tread and multidirectional sipes evacuate water and slush efficiently, supporting grip and stability, while lightweight materials reduce rolling resistance and aid fuel efficiency. It earned an ‘Exemplary’ rating in last year's Auto Bild tyre test, also praised for strong value. The WINTER SPORT 5, fitted as original equipment on selected Mercedes-Benz models, uses wide, deep grooves for efficient water evacuation and predictable cold-weather handling.

For enthusiasts, the SP WINTER SPORT 4D offers direct steering response through a lightweight construction, interlocking sipes, V-shaped snow grooves and an adaptive winter compound that promotes even contact-patch pressure. It is trusted as original equipment by Audi, BMW, Mercedes-Benz and Porsche. The SP WINTER SPORT 3D, original equipment on selected Audi, BMW, Mercedes-Benz and Volkswagen models, combines three-dimensional interlocking sipes for snow traction and braking with a Shape Lock System that maintains tread stability at higher speeds.

Completing the portfolio, the DUNLOP ALL SEASON 2 delivers a balance of summer and winter tyre benefits across varied conditions. Its 3D interlocking sipes aid winter traction, while a reinforced carcass supports stability and handling on both wet and dry surfaces, providing year-round confidence for European motorists.

Marcus Schulz, Assistant Manager – Product Planning, Dunlop Tyre Europe GmbH, said, "Winter no longer necessarily means facing months of snow and ice, with often milder temperatures adding to the unpredictability of the weather. This makes it even more important to have tyres that can cope with a wide range of weather conditions. With our winter portfolio, DUNLOP offers tyres designed to meet the increasingly diverse conditions and ensuring drivers can rely on consistent performance.

"In DUNLOP's first full year with Sumitomo Rubber Industries, we are entering a new chapter in Europe. By continuously strengthening and expanding our product portfolio, we are enhancing the brand's competitiveness and laying the ideal foundation for a successful and safer 2026 winter season.”

Comments (0)

ADD COMMENT

Link Copied!

Michelin has broadened its agricultural trailer tyre lineup with the launch of the MICHELIN WORKXBIB. Designed primarily for tipping trailers, slurry tankers, manure spreaders and similar farm equipment, the new addition complements the existing MICHELIN TRAILXBIB, which features the company’s patented Ultraflex technology for reduced soil compaction.

Engineered to handle the demands of trailer platforms, the WORKXBIB combines endurance, high load capacity and reliability for intensive road use. It supports loads of up to 6,500 kg at speeds of 65 kmph and is offered in a size range tailored to current vehicles, drawing on Michelin’s innovation to deliver dependable performance.

The tyre’s flat crown and reinforced, serrated shoulders provide a larger footprint, promoting stability even under heavy loads and at high speed. A steel-belted crown, robust carcass and bead area, and a high-performance rubber compound enhance puncture resistance. Serrated shoulders improve stability on sloping ground, while large tread blocks self-clean to reduce maintenance. This design delivers up to 80 percent longer life than the previous generation of Michelin trailer products.

For contractors and farm owners, the result is fewer tyre replacement and maintenance stops, greater equipment availability and better-controlled operating costs. The replacement market rollout begins with size 600/55 R26.5 in October 2026, followed by three additional sizes in the second quarter of 2027: 650/55 R26.5, 600/60 R30.5 and 560/60 R22.5.

Tom Saunders, Agricultural Beyond Road Customer Engineering Support Manager at Michelin, said, “In a sector marked by increasingly intensive road use and demanding field performance, we’ve developed the MICHELIN WORKXBIB for contractors and farmers. Our latest fitment has a wide range of applications from public works and civil engineering through to haulage and livestock farming.”

Comments (0)

ADD COMMENT

Link Copied!

Tegeta Green Planet participated in a Circular Economy Action Platform meeting hosted by the UN Global Compact Network Georgia on 6 October. The session examined packaging waste management and the need for technical regulation from a business standpoint, with participants exploring existing practices and the challenges tied to the issue.

Attendees stressed that an effective waste management system would serve environmental goals while giving businesses a clear and predictable operating environment. Shalva Akhvlediani, Director of Tegeta Green Planet, presented the company’s vision and hands-on experience. Discussion topics included the Extended Producer Responsibility system, the role of businesses in waste management and practical obstacles to advancing a circular economy in Georgia.

As an EPR organisation, Tegeta Green Planet helps producers and importers meet their environmental obligations and supports an effective waste chain spanning collection, proper treatment and conversion into a resource. Akhvlediani detailed the company’s work with used tyres, waste oils and automotive batteries, noting that a sustainable system demands coordinated cooperation among businesses, government and other stakeholders alongside practical experience.

The meeting underscored the value of technical regulation, with clear requirements and strong enforcement seen as ways to develop waste management, reinforce responsible business practices and encourage more efficient resource use. Developing a circular economy remains a key focus for Tegeta Green Planet, which continues working with the business, public and educational sectors so that waste management moves beyond regulatory compliance toward reuse and recycling opportunities.

Comments (0)

ADD COMMENT

Link Copied!