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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Pirelli has designated the SC0 rear tyre as the new benchmark for Moto2 as the MotoGP World Championship resumes its season this weekend at Silverstone for the 12th round. The Italian manufacturer is supplying its standard range compounds for both support classes, with the updated SC0 making a notable return to the British circuit following its successful evaluation there last year.

The 2026-spec soft rear tyre, which initially debuted as a development prototype, features an altered structure from its predecessor and was universally embraced by competitors during practice sessions, even contributing to a new lap record. Its promotion to the standard lineup sees it joined at the rear by the new medium SC1 compound, formerly a development specification, while front tyre duties are covered by the soft SC1 and the medium SC2 options.

Silverstone presents a formidable technical challenge as the longest venue on the calendar at 5.9 kilometres, demanding exceptional machine and rider performance through high-speed corners and rapid directional shifts. The circuit’s low-abrasion surface and notably wide racing corridor allow for varied lines, adding another layer of strategic complexity to the already fast-paced weekend.

In the Moto3 class, Pirelli has made available the soft SC1 and medium SC2 compounds for both front and rear positions. The majority of the field last year favoured the medium SC2 at both ends, a choice that propelled José Antonio Rueda to victory from the back of the grid, though a segment of riders alternatively selected the softer SC1 option for their machines.

Giorgio Barbier, Pirelli Motorcycle Racing Director, said, “For this weekend's round at Silverstone, one of the most iconic and technically demanding circuits on the World Championship calendar, Pirelli will once again provide standard range tyres for both classes, featuring the rear soft SC0 compound that made its Moto2™ debut at this very circuit last year as the E0125 development option. The E0125, which complemented the then standard soft tyre, was immediately appreciated by the intermediate class riders, who, on a highly demanding circuit characterised by numerous high-speed corners and changes of direction where stability is essential, focused exclusively on this new solution from Friday onwards.

“Introduced again at subsequent events, the former E0125 quickly became the Moto2™ riders' benchmark, offering greater stability, outright one-lap performance and consistent performance across a wide variety of weather and track conditions. As a result, it was promoted to the new standard soft tyre for this season. More than a year after its debut, and thanks to the significant development work carried out by the teams during this period, the SC0 has already contributed to numerous lap records this season. Weather conditions permitting, it will therefore be interesting to see whether Silverstone can deliver further progress compared with last year's benchmark.”

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Hankook Tire, the exclusive tyre supplier for the FIA World Rally Championship, played a central role in the season's 10th round at Secto Rally Finland. The event concluded on 2 August in Jyväskylä, where the company’s Dynapro R213 extreme all-terrain rally tyre was put to the ultimate test across the demanding Finnish landscape.

Competitive action unfolded over 20 Special Stages, covering a total distance of 316.04 kilometres. Renowned as the fastest rally on the WRC calendar, the event subjected vehicles and tyres to extreme speeds. The challenging route was characterised by blind crests that impaired visibility, frequent jumps and narrow forest roads, placing a premium on tyre durability and overall driving stability.

The supplied Dynapro R213 tyre proved instrumental in managing these severe conditions. On the ultra-high-speed gravel sections, it effectively absorbed the impact of repeated landings while delivering consistent grip and precise steering response. Its robust construction ensured reliable performance across the loose dirt and forest roads, allowing competitors to push their vehicles to the limit.

Sami Pajari of Toyota GAZOO Racing claimed a home victory, securing back-to-back wins after his success in Estonia. This result advanced him to second in the Drivers’ Championship with 171 points. Looking ahead, Round 11 is the ueno Rally del Paraguay from 27 to 30 August, featuring gravel stages that will demand exceptional tyre resilience. Hankook applies data from its WRC involvement and other global motorsport events to its R&D, fostering continuous innovation and reinforcing its status as a leading global brand.

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Legislation aimed at overhauling decades-old federal tyre safety regulations has been introduced in the United States Senate. The Tire Safety Modernization Act of 2026, sponsored by Senators Roger Wicker of Mississippi and Raphael Warnock of Georgia, seeks to replace outdated testing mandates with contemporary performance standards that better reflect current manufacturing innovations and production techniques.

The proposed bill directs the Department of Transportation to revise federal testing protocols, retiring obsolete requirements in favour of more relevant criteria. A key component of the legislation involves aligning high-speed testing procedures with internationally recognised best practices while also clarifying existing safety criteria to ensure more effective regulatory oversight. The measure preserves a strong emphasis on passenger safety while adapting to the capabilities of modern tyre engineering.

Strong support for the initiative has emerged from the tyre manufacturing sector. Anne Forristall Luke, President and CEO of the U.S. Tire Manufacturers Association, praised the bipartisan effort as a crucial step towards aligning American rules with technological progress, bolstering road safety and enhancing the industry’s global competitiveness. Executives from major manufacturers, including Continental Tire, Goodyear and Yokohama, have similarly endorsed the update, noting that it would allow engineering and compliance resources to focus on innovations that genuinely benefit drivers.

Senator Warnock highlighted the importance of Georgia’s prominent tyre production sector, while Senator Wicker emphasised that federal regulations have failed to keep pace with evolving manufacturing technology. Industry leaders collectively view the act as a thoughtful, science-based modernisation that supports domestic manufacturing competitiveness and ensures that safety standards reflect the demands of modern vehicles, roads and driving conditions across the country.

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Bridgestone's e-CENTRE Excellence Programme has delivered a significant financial boost to two community organisations in South London, with nearly GBP 1,000 raised through a charity initiative run by Merityre Southfields, a flagship Bridgestone e-CENTRE. The campaign generated a total of GBP 938, which was evenly distributed between St Michael's Church Social Projects and the Friends of Wimbledon Park, both of which are vital to the Wandsworth area.

Over a five-month period spanning November and December 2025, as well as February to April 2026, motorists were given a one-pound donation token with every Bridgestone tyre purchased. Customers were then able to choose which of the two local causes would receive their contribution, resulting in GBP 464 for St Michael's and GBP 474 for the Friends of Wimbledon Park.

The funds allocated to St Michael's Church Social Projects will finance the installation of an additional water tap at its Kitchen Garden Project, located on the Church Memorial Field. Since its establishment in 2020, the garden has expanded into a productive allotment with over 30 raised beds, providing fresh organic produce for community lunches and a weekly food bank. The new tap is expected to reduce watering time for volunteers, enabling them to dedicate more attention to the retired, unemployed, isolated and vulnerable individuals who rely on the project for support, skill development and social connection.

Meanwhile, the Friends of Wimbledon Park will direct its share towards a new seating area in the Waterfall Garden, with any leftover funds supporting tree and bulb planting as well as maintenance materials. This retail-led effort exemplifies a core component of Bridgestone's broader e-CENTRE Excellence Programme, which has allocated over GBP 1 million to encourage retailers to adopt sustainable practices and foster positive social and environmental change within their localities.

Dene Arnold, Director, Merityre, said, “As a business rooted in the local community, we wanted to give our customers the opportunity to support causes that really matter to people in Southfields. We're incredibly grateful to everyone who got behind the campaign and helped us raise such a fantastic amount. Being part of Bridgestone's e-CENTRE network is about much more than providing premium products and services. It's about making a meaningful contribution to the communities we serve and creating a positive impact beyond the garage doors. It's especially rewarding to know exactly where the money is going. Whether it's helping volunteers continue to grow fresh produce for people in need or creating new spaces for the community to enjoy in Wimbledon Park, these are projects that will make a lasting difference locally.”

Gresia Cabrera, Bridgestone's Business Development Manager and project lead for the e-CENTRE programme, said, “Community engagement sits at the heart of the eCentre philosophy, so it's fantastic to see Merityre Southfields bringing that vision to life. The team continues to demonstrate that modern tyre retailers can be a force for good, supporting local people and causes while delivering outstanding service for motorists. Initiatives such as this show that the industry can make a genuine difference and create value far beyond tyres alone. One of the strengths of the e-CENTRE programme is that it empowers retailers to make a meaningful impact in the communities they serve. Seeing these donations translated into practical improvements that will benefit local people for years to come is exactly what the programme is all about.”

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