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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Birla Carbon is reinforcing its dedication to South America’s evolving tyre and rubber sectors by merging worldwide innovation with localised production, technical proficiency and customer service. With a well-established history in Brazil and extensive experience across the continent, the company is strategically positioned to assist manufacturers in navigating present market challenges while simultaneously planning for future industry demands.

This fusion of regional insight and global research capabilities will be prominently featured at Expobor 2026. The event is scheduled from 23 to 25 June at São Paulo’s Expo Center Norte, where the corporation will occupy Booth 19004, offering attendees a direct look at its latest advancements.

As a dominant force in global carbon black production, Birla Carbon serves diverse sectors that depend on this critical material, ranging from tyres and rubber goods to specialty applications. Leveraging its regional production sites, a vast international research network and a comprehensive product lineup – which includes BC grades, Raven and Conductex blacks, Continua SCM and Nanocyl nanotubes – the firm ensures products are customised for local needs without compromising the consistency and excellence expected worldwide.

With rising customer emphasis on performance, dependable supply chains and ecological responsibility, Birla Carbon is advancing solutions like Continua SCM to facilitate the shift towards circular economies. This sustainable material can partially replace traditional carbon black in numerous industrial uses, aiding clients in meeting their environmental targets. By combining local roots with global reach and a strong sustainability ethos, the company remains a pillar for the long-term resilience and competitiveness of South America’s rubber industries, and its team at Expobor will be available to discuss these innovations further.

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AZuR participated as a cooperation partner for the tyre material flow at the conference ‘NRW can do DPP!’ held on 16 June 2026 at the Bottrop campus of Ruhr West University of Applied Sciences. Approximately 150 participants from industry, academia, associations and politics convened to exchange knowledge and discuss implementation strategies for the Digital Product Passport.

The strategic significance of the Digital Product Passport for North Rhine-Westphalia was underscored by Susanne Hagenkort-Rieger from the state's Ministry of Economic Affairs. She articulated that the circular economy has become a pivotal competitive factor for regional value creation and resource sovereignty, with digitalisation serving as the essential catalyst for unlocking efficiency potential.

European Commission Policy Officer Franziska Zibold detailed the DPP's role within the broader EU sustainability strategy and forthcoming regulatory obligations via live video. Thomas L Rödding of the CEN-CENELEC standardisation committee subsequently emphasised that standardised data structures and interoperable systems are fundamental to successful implementation.

Yorick Lowin of the German Federal Association of Tire Dealers presented the DPP's application in the tyre circular economy. Tyres were identified as an ideal use case due to their material complexity and diverse recycling streams. The digital passport can optimise used tyre sorting, streamline retreadable casing selection and support recycling by making manufacturer and production data accessible.

Lowin also raised concerns regarding data sovereignty and integration challenges for small and medium-sized enterprises, calling for neutral platforms accessible to all market players. For AZuR, the conference reaffirmed the DPP's importance for prolonging tyre lifecycles, enhancing recycling transparency and driving resource efficiency and climate protection across Europe.

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Cooper Tires is strategically reinforcing its all-season tyre portfolio across passenger cars, sport utility vehicles and light commercial vehicles to meet the growing demand for versatile, year-round driving solutions. This expansion addresses the practical needs of drivers who encounter fluctuating road and weather conditions throughout the year.

Leveraging over a century of tyre manufacturing expertise, the company has broadened its all-season range to deliver reliable, balanced performance and durability tailored for real-world driving across the EMEA region. The enhanced product line now achieves an 89 percent market coverage rate for key European vehicles, ensuring a wide array of suitable options for customers.

The comprehensive portfolio includes the Cooper All-Season for cars and SUVs and the Cooper All-Season Van for light trucks. Both ranges carry the 3PMSF symbol, signifying certified winter capability. The passenger car and SUV line incorporates 3D blading technology for effective braking, an optimised footprint for even wear and extended tread life and a robust carcass for stable handling. This range comprises 84 SKUs, spanning sizes from 14 to 20 inches, and is engineered to be electric vehicle ready.

Specifically developed for commercial use, the Cooper All-Season Van emphasises strength, high mileage and reliability for daily fleet operations. Its deep treads and high-density siping enhance all-season braking, while a reinforced casing supports heavy payloads and demanding work environments. This van-specific line includes 18 SKUs, covering 15- to 17-inch diameters, and is also EV-ready. This strategic investment underscores Cooper Tires’ commitment to delivering its characteristic toughness and straightforward dependability through a versatile all-season offering in the region.

Ben Glesener, Senior Technology Director Product Development Consumer EMEA, said, “Cooper is focused on doing what really matters for drivers – delivering dependable tyres with strong coverage, proven performance and real‑world durability. Backed by more than 100 years of heritage and a renewed investment in product and brand across Europe, our all‑season portfolio is designed to give customers confidence all year round, whatever the road or the season.”

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Goodyear executed its largest-ever endurance operation at the 24 Hours of Le Mans, a feat defined by 188,747 kilometres driven, 377.5 million wheel revolutions, and 44 cars competing across the LMGT3 and LMP2 classes. The Goodyear Racing Eagle tyres delivered relentless performance, supported by over 120 experts and a stock of 8,000 tyres that sustained racing throughout the entire week.

The tyres' exceptional consistency allowed teams to extend stint lengths significantly, saving precious time during pit stops. Most LMGT3 squads completed four stints, or forty laps, before changing rubber, while LMP2 entries routinely managed five. One LMP2 team notably kept a single set for 56 laps, covering 761 kilometres, a distance comparable to travelling from Le Mans to Monaco.

Pace did not diminish despite the high mileage, with the fastest LMGT3 car posting a 100-lap average 1.2 seconds quicker per lap than the previous year, marking the fastest Le Mans of the LMGT3 era. Goodyear’s off-track presence was equally robust, featuring the Goodyear Blimp, a new grandstand, a popular fan activation, a museum collaboration and the introduction of the Goodyear Passerelle.

Ahead of the race, Goodyear reaffirmed its commitment to LMGT3 through a joint announcement with the FIA and ACO, extending its exclusive supply into a fourth season in 2027 with a new tyre composed of 66 percent sustainable materials. The WEC now moves to the 6 Hours of São Paulo on 12 July, though many Le Mans teams will first compete at the European Le Mans Series’ 4 Hours of Imola on 5 July.

Stephen Bickley, Goodyear Endurance Program Manager, said, “When you look at the distances covered without compromising on pace, it underlines the consistency and reliability of our Goodyear Racing Eagle tyres throughout one of the toughest races in the world. It was a special Le Mans for us, felt through our fan activation, partnership renewal and icons old and new at – and above – the circuit.”

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