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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Kuraray America, Inc. marked National STEM Day on 8 November by spotlighting a community educational event that brought together 15 of its volunteers and students from the Houston Japanese Supplementary School at San Jacinto College for a day of hands-on exploration and discovery.

Participants engaged in activities illustrating how science, technology, engineering and mathematics (STEM) converge in chemical manufacturing. Experiments with superabsorbent polymer beads explored chemistry and material properties, while a tour of the college’s facilities introduced industrial equipment. Students also learned about water filtration and distillation processes and how mathematical concepts underpin scientific and engineering applications.

One student showed particular interest in the distillation tower, linking the experience to the Kuraray Group’s contributions to everyday life and its mission of achieving for people and the planet what no one else can. The event also benefited KAI volunteers, who shared technical knowledge, exchanged perspectives and learned alongside potential future scientists and engineers.

Kuraray America thanked Reiko Fuwa and Tomohiro Tani for coordinating the visit, Hans Vandommele for sharing his expertise and all 15 KAI volunteers. The company also expressed appreciation to San Jacinto College for facility access and to the Houston Japanese Supplementary School students for their curiosity, enthusiasm and thoughtful questions.

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Liberty Tire Recycling attended the 2026 SEMA Show in Las Vegas, held from 3–6 November at the Las Vegas Convention Center. The automotive aftermarket event, one of the industry's largest, drew over 160,000 attendees from the automotive, tyre and transportation sectors to review new products, technologies and business opportunities.

The Lakin Tire brand, a consistent SEMA exhibitor, once again used the show to reinforce industry relationships and present Liberty's tyre collection, recycling and sustainable resource management capabilities. Personnel from Grade/Used Tires, Commercial Truck Tires, Metals, Recycling and Collection, together with corporate and regional leadership, met customers, suppliers and industry professionals from around the world.

The booth received existing and prospective customers from numerous tyre and automotive segments during the week. Costco Wholesale Corporate Office, United Tires and UTU Wholesale were among the organisations that stopped by to examine Liberty Tire's products, services and nationwide reach. The company viewed the event as an effective forum for monitoring emerging market trends and demonstrating its position in recycling and sustainability, alongside its focus on innovation, workforce development and circular economy principles.

A memorable moment came when a high school shop teacher and students, attending through a special educator programme, toured the booth to learn about tyre recycling and industry operations. Liberty team members provided industry insights, outlined career pathways and acknowledged educators' contribution to developing future skilled trades professionals, supplying tyre inflation gauges for classroom use.

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Laufenn, Hankook's associate brand, earned a ‘Good’ ratingwith an overall score of 2.2 for its G Fit 4S in the Auto Bild Allrad all-season SUV tyre test published on 8 October 2026 (issue 41). The tyre competed credibly against 11 rivals from established premium marques, finishing competitively in a 12-strong field.

Wet handling proved a particular strength, with the G Fit 4S collecting the second-highest rating shared with other models. Aquaplaning resistance also impressed, as the tyre held its line until stability began to fade at roughly 100 kmph (62 mph). In snow, it recorded the third-shortest braking distance, matching two other contenders.

Testing spanned snow, wet and dry disciplines, each weighted equally in the final ranking, with a third-generation MINI Countryman serving as the test vehicle. Snow assessments were carried out in New Zealand, while European venues hosted the wet and dry evaluations. The jury's conclusion underscored Laufenn's value-focused positioning, finding the G Fit 4S a solid option for cost-conscious buyers.

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Tyres Europe has underscored that tyres qualify as fully recyclable under ISO 22628:2002 and UN Regulation No. 133, describing the established methodology as a robust foundation for assessing tyre recyclability. The organisation recently set out its position on the matter.

The distinction between recyclability and actual recycling rates is central to the group's argument. Recyclability refers to the technical potential of a product and its materials to be recycled, while the real rate hinges on treatment capacity and demand for secondary raw materials. Regulatory frameworks should therefore separate the two concepts clearly and align with an internationally recognised standard.

Tyres consist of rubber compounds, chemical additives and reinforcing textile and steel cords, and at end of life they are separated into rubber, textile and steel fractions, all of which existing mechanical or chemical routes can recycle. Mechanical processing yields rubber granules and powders usable as secondary raw materials across many applications, recovered textiles can be further processed and valorised, and cleaned recovered steel can re-enter metal recycling and steelmaking.

Tyres Europe pledged continued cooperation with policymakers and value-chain partners to strengthen circularity and maximise recovery of valuable tyre materials in Europe, with the full paper available on its website.

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