Signing of Kumho Tire contract expected this month

According to industry sources, Kumho Tires’ creditors will return the agreement on use of the Kumho brand name to Kumho Industrial this week ahead of a planned signing of a contract before the end of the month.

Progress is being made towards closing the sale of a 42.01 per cent share in Kumho Tire to China’s Qingdao Doublestar Tire despite ongoing grassroots and industry opposition to the deal. Seoul-based publication JoongAng Daily reported last week that around 100 people, including employees and representatives of overseas Kumho distributors, gathered in front of Kumho’s headquarters in Seoul on 8 August to protest against the transaction. Workers from the tyre maker’s factories in Gokseong and Gwangju held similar protests last month.

Nevertheless, with creditors having accepted all requirements placed upon them, Kumho Industrial has no reason to reject the contract. The procedure for selling the 42.01 per cent share must be completed by 23 September, otherwise the sales and purchase agreement signed with Doublestar will become void; with the clock ticking and the demands of company chairman Park Sam-koo met, Kumho Industrial is expected to accept the current terms.