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.

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JK Tyre & Industries has approved a phased capacity expansion plan involving an investment of INR 49.8 bllion to strengthen its presence in the Truck and Bus Radial (TBR) and Passenger Car Radial (PCR) tyre segments.

The company said its board of directors, at a meeting held on May 26, approved the expansion of TBR production at its Chennai Tyre Plant (CTP) and Vikrant Tyre Plant (VTP), along with PCR capacity expansion at the Chennai facility.

JK Tyre currently has an installed TBR and PCR capacity of 21 million tyres per annum, including capacities under implementation, with utilisation levels running at over 90 percent. The proposed expansion will increase overall capacity by 24 percent and is scheduled to be completed by FY30.

The investment will be undertaken in phases and financed through a combination of internal accruals and debt, the company said in its regulatory filing.

According to JK Tyre, the expansion is driven by robust demand across tyre categories in the Indian market and the need to maintain and strengthen its market presence.

The announcement comes alongside the company’s strong FY26 performance, with JK Tyre reporting record revenues and profitability amid rising domestic demand and higher sales volumes.

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Continental has introduced an addition to its retread product family with the launch of the ContiTread HDR 5, a regional retread designed to support fleet operations through enhanced durability and dependable performance. The new retread focuses on delivering confident handling, reliable traction and an extended service life for vehicles operating on regional routes.

The ContiTread HDR 5 employs a five‑rib tread pattern intended to provide predictable control, stability and even wear, particularly on routes involving frequent stops, sharp turns and mixed road surfaces. Its open shoulder design improves grip across various weather and road conditions, ensuring real‑world reliability while preserving both durability and overall mileage.

Developed to balance toughness with performance, the retread helps fleets maximise value from each retread cycle. Available widths include 210, 220, 230 and 240, all featuring a tread depth of 26/32 inch, offering flexible fitment for a range of regional truck applications.

Shaun Uys, VP of Sales and Marketing, Truck Tire RE USA, said, “Regional fleets need tyres that perform consistently across a wide range of conditions. The ContiTread HDR 5 was engineered to provide predictable handling, dependable traction and the durability fleets rely on to keep vehicles moving and costs under control.”

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Michelin’s Center for Sustainable Materials, located at the Michelin Innovation Park – Cataroux in Clermont-Ferrand, has entered into a strategic partnership with Syntetica, a leading European deeptech startup. The collaboration aims to fast-track the industrial deployment of an innovative nylon recycling process, reinforcing the circular economy.

Under the agreement, Syntetica will integrate its proprietary chemical recycling method into a secure, purpose-built industrial environment at the Center. This marks the first time that nylon-rich mixed textiles can be recycled on an industrial scale. The initiative combines more than 130 years of Michelin’s material science leadership with Syntetica’s advanced low-temperature chemical process.

The global textile industry recycles less than one percent of its waste, largely because most technical garments contain mixed synthetic fibres that defy conventional recycling methods. Syntetica’s technology directly processes such materials without prior sorting, yielding high-purity Nylon 6 and Nylon 6.6 suitable for textile, automotive and industrial uses. The pilot at the Center will initially recycle several tonnes of textile waste, with a planned scale-up towards industrial volumes by 2027.

Both organisations share the belief that industry must drive the transition to sustainability. The project aligns with Europe’s regulatory push, including mandatory textile separation from 2025 and stricter recycled content rules from 2027. Beyond nylon, the pilot represents the first step in Syntetica’s broader green chemistry platform, which aims to expand to other polymers and pioneer a new generation of circular industrial solutions.

Marco Bertone Co-Founder & CEO, Syntetica, said, “Installing our pilot at the Center for Sustainable Materials marks a decisive milestone for Syntetica. The industrial expertise and operational rigour made available by Michelin are a key lever to scale our technology to full industrialisation.”

Patrice Kéfalas Director, Center des Matériaux Durables, said, “The Center for Sustainable Materials was designed to support this kind of breakthrough technology towards industrial scale. The collaboration with Syntetica illustrates our ambition to put Michelin’s industrial experience in service of concrete solutions to accelerate materials circularity.”

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Scandinavian Enviro Systems AB (publ) has taken a significant step forward in its Nordic expansion by submitting an environmental permit application for its first wholly owned, full-scale pyrolysis plant in the region. The company has also secured an exclusive option to purchase the property where the facility is intended to be located.

Designed to process over 70,000 tonnes of end-of-life tyres annually, the proposed plant represents a core pillar of Enviro’s long-term strategy focused on wholly owned facilities. The permit submission and property option mark continued execution of the company’s industrial scale-up, supported by constructive dialogue with relevant authorities and stakeholders. Preliminary feedback from regulators could arrive before the end of the second quarter of 2026.

While the property option allows Enviro to reserve the site ahead of a final investment decision, the planned establishment remains conditional on receiving the necessary environmental approvals, a final investment decision and other standard project requirements.

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