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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Goodyear is all set for the showdown at Fuji Speedway this weekend for the sixth round of the FIA World Endurance Championship, equipping all 18 LMGT3 cars with the Goodyear Racing Eagle tyres . The Japanese venue ranks among the calendar’s fastest and most demanding circuits.

Its permanent-track straight measures 1.475 km, the longest of the season. That extended run from Turn 16 to Turn 1 allows front tyres to cool substantially before subsequent corners impose heavy lateral and longitudinal loads on the rear tyres, making temperature management critical over the six-hour race.

Every LMGT3 entrant will use the Goodyear Racing Eagle Medium compound, the same specification employed in the opening five rounds. It was engineered for a broad range of circuits and temperatures, suiting Fuji’s famously changeable conditions. Goodyear Racing Eagle Wet tyres remain available should rain arrive.

The Medium compound could enable single-stint strategies, prioritising performance from each set over multi-stint approaches, with Fuji’s relatively low wear potentially permitting extended runs when safety car or full course yellow periods make that advantageous. Tyre selection and pit timing gain added importance given swiftly shifting weather. Goodyear Racing Eagles also compete this weekend at Kansas Speedway in NASCAR, Rockingham Dragway in NHRA and Silverstone in the British Touring Car Championship.

Stephen Bickley, Goodyear Endurance Program Manager, said, “Fuji’s track surface is relatively smooth, meaning overall wear is comparatively low. This also means that managing heat and bringing the tyres up to temperature can be more difficult, particularly at the start of a stint. Teams need to get the tyres into their operating window quickly, and the quick warm-up characteristics of the Goodyear Racing Eagle Medium will help them do that.

“The weather can be a major factor at Fuji, so teams need to be prepared to react quickly. The wide operating window of the Goodyear Racing Eagle Medium gives drivers confidence across changing temperatures, while the Goodyear Racing Eagle Wet provides a solution should track running become affected by rain.”

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TyreSafe has entered a new partnership with South Yorkshire Fire & Rescue, reinforcing joint efforts to prevent road casualties and enhance safety throughout the county. The fire and rescue service becomes part of a widening group of UK fire services collaborating with TyreSafe to highlight the dangers linked to illegal and poorly maintained tyres.

Under the arrangement, both organisations will pool expertise, resources and engagement opportunities to promote tyre safety among South Yorkshire road users. This work will be integrated into broader road safety initiatives. The partnership also builds on South Yorkshire Fire and Rescue’s existing role within the South Yorkshire Safer Roads Partnership, where education, training and publicity are central to reducing casualties.

The collaboration comes amid a difficult road safety picture. In 2024, a total of 43 people died and 748 were seriously injured in South Yorkshire collisions, amounting to 791 killed or seriously injured casualties. Although this was lower than the 841 recorded in 2023, the South Yorkshire Safer Roads Partnership acknowledges substantial progress is still needed to reach its Vision Zero goal.

Road traffic collisions remain a major operational demand for South Yorkshire Fire and Rescue, whose community risk work involves joint efforts to cut incident numbers and severity. Serious and fatal crashes occur on major routes linking Sheffield, Doncaster, Rotherham and Barnsley, and on higher-speed rural roads. Tyres are vital to the Safe System approach, as defects can impair braking, steering and control, raising the risk of serious incidents.

Stuart Lovatt, Chairman, TyreSafe, said, “Fire and rescue services see the consequences of serious road collisions first-hand. Their experience gives them a unique perspective on the importance of prevention, and that makes South Yorkshire Fire and Rescue an incredibly valuable partner for TyreSafe. South Yorkshire has a strong and established road safety partnership, with organisations already working together towards Vision Zero. We want to complement that work by making tyre safety a more visible part of the conversation around safer vehicles and safer roads. We’re delighted to welcome South Yorkshire Fire and Rescue to the growing number of fire and rescue services partnering with TyreSafe. By combining their frontline experience and local reach with our specialist knowledge of tyre safety, we have an opportunity to reach more drivers with simple, practical advice that could help prevent a serious collision.”

Robert Horne, Prevention & Intervention Officer for Barnsley, said, “We are pleased to be partnering with TyreSafe to strengthen the road safety work we already undertake with our partners across South Yorkshire. Our firefighters regularly attend road traffic collisions and see the devastating impact they can have on individuals, families and communities. Prevention is therefore a vital part of our role, and helping people understand the simple steps they can take to reduce risk is an important part of that work. Tyres are a critical safety component on every vehicle, yet they can easily be overlooked. Working with TyreSafe will help us reinforce that message and provide road users with practical information they can use to make sure their vehicles are safe and roadworthy.”

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Yokohama Rubber has become a participant in PROJECT TREE, a sustainability initiative launched by ITOCHU Corporation to advance the responsible sourcing of natural rubber. The programme relies on blockchain technology to create a traceable supply chain, and Yokohama Rubber has begun using rubber procured through this framework. On 25 September 2026, the company started supplying tyres for commercial vehicles operated by FamilyMart Co., Ltd. as project-supported products.

Natural rubber represents roughly 30 percent of tyre raw materials, while tyres account for about 70 percent of global consumption of the resource. Most of the world’s supply comes from smallholder farmers in nations such as Thailand and Indonesia. The tyre industry has responded with efforts spanning forest conservation, human rights safeguards, agricultural training and livelihood stabilisation. PROJECT TREE identifies sourcing regions and assists farmers through incentives from participating companies and training programmes.

Yokohama Rubber has pursued traceability through several channels. Its natural rubber processing subsidiary, Y.T. Rubber Co., Ltd., earned Chain of Custody certification from the Forest Stewardship Council for responsible processing and distribution. The company also employs RubberWay Geo-Mapping as a risk assessment tool and is aligning its operations with the EU Deforestation Regulation (EUDR). For several years it has supported smallholder farmers in Thailand’s Surat Thani Province. Joining PROJECT TREE is expected to further reinforce supply chain transparency and supplier support.

As a founding member of the Global Platform for Sustainable Natural Rubber (GPSNR), Yokohama Rubber revised its Procurement Policy for Sustainable Natural Rubber in September 2021 and continues to strengthen collaboration with the platform. The company is also working towards the United Nations Sustainable Development Goals, with the Yokohama Rubber Group promoting sustainable raw material procurement, including natural rubber, as part of that effort.

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Liberty Tire Recycling took part in a Washington State Tire Amnesty Event alongside the Washington State Department of Ecology and the Lewis County Solid Waste Utility. The three-day event, held in mid-September at the Southwest Washington Fairgrounds in Centralia, marked the area’s first such opportunity in nearly two and a half years. Local turnout surpassed expectations, with more than 240 tonnes of tyres and wheels gathered from area residents.

Handling that volume demanded close coordination between Liberty Tire Recycling's facilities in Puyallup, Washington and Portland, Oregon. Crews from both sites merged staff, equipment and other resources to keep processing on track. Lewis County residents showed up in numbers, forming lines of vehicles before the gates opened each morning. Numerous participants seized the chance to rid their properties of unwanted tyres and satisfy local cleanup and code compliance rules, which boosted neighbourhood appearance, cut environmental dangers and made communities safer.

The scale of the response made clear how much amnesty events matter in giving residents a handy, responsible way to part with old tyres while discouraging illegal dumping. The occasion also marked the debut of Liberty Tire Recycling's new regional outreach booth. Staff gave out educational materials and stickers and explained the journey tires take after collection. Attendees learned how recycled tyres find new life in transportation, construction, landscaping, sports surfaces and other uses, and feedback was overwhelmingly favourable.

None of this would have come together without solid collaboration among community partners. Liberty Tire Recycling thanked Lewis County residents, the Lewis County Solid Waste Utility and the Washington State Department of Ecology for their commitment to responsible tyre management and environmental stewardship. The company also recognised its Portland team and every employee who pitched in on planning, logistics, transportation and processing. The event ended up as Liberty Tire Recycling's largest amnesty collection of the year, showing both the need for accessible tyre recycling and the community's commitment to sustainability. By steering discarded tyres away from illegal dumping sites and landfills, the company keeps supporting healthier communities and a more circular economy, and it looks forward to future collection events across the Pacific Northwest.

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