BOOKMARK
  • Korean|
  • Chinese|
  • Japanese
본문내용 바로가기

Aju Business Daily

SEARCH
  • ECONOMY
  • ENTERTAINMENT
  • IT
  • South Korea
  • North Korea
  • WORLD
  • SPORTS
  • LIFESTYLE
  • AUTO MOTIVE
  • OPINION
  • PEOPLE
  • MILITARY
NEWS > AUTOMOTIVE > article

Kumho Tire's union agrees to vote on Chinese ownership

Lim Chang-won Reporter(cwlim34@ajunews.com) | Posted : March 30, 2018, 14:12 | Updated : March 30, 2018, 16:47
  • 트위터
  • 페이스북
  • 웨이보

[Yonhap News Photo]


SEOUL --  Under mounting pressure from creditors and government officials, the union of South Korea's second-largest tiremaker, Kumho Tire, eased its tough stance Friday and agreed to hold a vote on an investment from a Chinese company.

The change was decided at talks by union leaders who had opposed a vote by Kumho Tire workers on the proposed sale of a 45-percent stake to China's Doublestar. No date was given. Union leaders are to meet with government officials and creditors later.

Korea Development Bank (KDB) regards China's Doublestar as the sole candidate to normalize the operation of the debt-stricken tire company. The state policy bank has warned of court receivership unless Kumho Tire presents a self-rehabilitation package by the end of this month.

Earlier in the day, Finance Minister Kim Dong-yeon said in a government statement signed by other ministers that Kumho Tire would not be able to repay its maturing debt unless it receives outside financial support.

"The only option is to improve the financial structure and establish a basis for normalization through large-scale new investments," Kim said.

Kumho Tire is saddled with about a total debt of 2.4 trillion won (2.25 billion US dollars)and some 27 billion won matures on Monday. Kim said that if the union accepts an investment from Doublestar, creditors will inject a fresh fund of 200 billion won, roll over its maturing debt and lower interest rates.

Kumho Tire President Han Yong-sung said the company is ready to file for court receivership that could lead to the loss of jobs by up to 40 percent.

"If Chinese capital is attracted, some wage losses and readjustments will be inevitable. This is a far healthier and more desirable direction than harsh restructuring and job loss to be caused by court receivership," he said.

  • Lim Chang-won Reporter
  • email : cwlim34@ajunews.com
© Aju Business Daily & www.ajunews.com Copyright: All materials on this site may not be reproduced, distributed, transmitted, displayed, published or broadcast without the authorization from the Aju News Corporation.
  • twitter
  • facebook
  • weibo
  • link copy
  • LIST
  • TOP

Related news

  • .Asiana Airlines signs deal to sell 29-story head office in Seoul.
    Asiana Airlines signs deal to sell 29-story head office in S…
  • .Chinese tire maker urges  Kumho Tires union to accept ownership change.
    Chinese tire maker urges Kumho Tire's union to accept owner…
  • .Kumho Tires union and management sign agreement to normalize operation .
    Kumho Tire's union and management sign agreement to normaliz…
  • .[FOCUS] Union militancy puts President Moons labor policy into fix.
    [FOCUS] Union militancy puts President Moon's labor policy i…
  • .Creditors negative over domestic companys sudden bid for Kumho Tire.
    Creditors negative over domestic company's sudden bid for Ku…

Real Time Photo News

  • .Super Junior becomes first K-pop group to enter Billboards Latin Songs Chart.

    Super Junior becomes first K-pop group to enter Billboard's Latin Songs Chart

  • .New ​Avengers sets new box-office record on opening day in S. Korea.

    New ​'Avengers' sets new box-office record on opening day in S. Korea

  • .Suzy makes warm-hearted donation for single mothers.

    Suzy makes warm-hearted donation for single mothers

  • .​BTS to premiere new song at Billboard Music Awards in May.

    ​BTS to premiere new song at Billboard Music Awards in May

  • .Rapper Locco and MAMAMOOs Hwasa dominate charts with Dont give it to me.

    Rapper Locco and MAMAMOO's Hwasa dominate charts with 'Don't give it to me'

Latest News

more+

  • ​BTS promotes LG's latest flagship G7 in YouTube video
  • LG acquires Austria's premium headlamp maker ZKW
  • ​Hyundai Motor's net profit halves due to slow sales in US and China
  • Koreans await historic summit on rapprochement in truce village
  • ​Leaders of two Koreas to plant commemorative tree in truce village
Aju Business Daily
Address : Aju News Corporation LEEMA Building, 11th floor, 42, Jong-ro 1-gil, Jongno-gu, SeoulContact us : swatchsjp@ajunews.com
Copyright ⓒ 2016 By Ajunews Corporation, All Rights Reserved.
Mobile view