Kumho sheds executives as Park Sam-koo moves to regain control

The Korea Times reported on 6 December that Kumho Asiana chairman Park Sam-koo is planning to relieve a number of company executives from the burden of going to work. The Seoul-based publication quoted an unnamed Kumho source as saying the company is undertaking executive job cuts as part of a restructuring drive that will primarily focus on Kumho Tire and Kumho Industrial.

“Kumho Tire will lay-off more than ten per cent of its executives, lowering the total to 36,” the source informed The Korean Times, adding that Kumho Industrial also recently reduced its number of executives by 20 per cent. “That’s mainly due to the continued dismal performances by the two affiliates (Kumho Tire and Kumho Industrial). Before the lay-offs, the chairman met with 120 executives from the group’s affiliates to check on the business situation that he was facing.’’

According to the newspaper, a Kumho Asiana spokesman admitted the group is being urged to fire some of its executives as Kumho Tire and Kumho Industrial were under a ‘workout programme.’ “Chairman Park is showing his eagerness to control the group completely with the personnel restructuring,’’ another official, who is said to be “familiar with the matter,” informed The Korea Times.

In November, Park Sam-koo and his son Se-chang sold their 10.45 per cent share in Kumho Petrochemical to around 100 million institutional investors. Park Sam-koo plans to use the money from the sale to increase his paid-in capital of Kumho Industrial, the de facto holding company of Kumho Asiana Group, and Kumho Tire in an attempt to return as the major shareholder.