Against Sales to Double Star
Kumho Tire’s trade union, subcontractors and partner companies united to prevent the sale of Kumho Tires to Double Star. They also said that although Kumho Asiana Group chairman Park Sam-koo's poor management is a problem and is to blame, they will prevent Kumho Tie from being sold abroad, which will significantly risk a technology leak whatever it takes.
“We will block Kumho Tire’s sale to Double Star by using all means available including a general strike by allying with local residents,” the Committee to Oppose the Overseas Sell-off of Kumho Tire said in press conference in the National Assembly on July 24.
The “Committee to Oppose the Overseas Sell-off of Kumho Tire” where members of the Kumho Tire Labor Union and employees of Kumho Tire’s subcontractors and partners band together regards Kumho Asiana Group chairman Park Sam-koo’s lack of management ability as the first cause of Kumho Tire’s insolvency. But the committee believes that the sell-off of the company to Double Star which does not guarantee job security and future investment plans will give rise to bigger damage such as Double Star’s withdrawal from Korea.
"Although the company promises employment security, such safeguards have been neutralized during the Ssangyong Motors crisis," said Kang Jung-ho, a manager of the committee. “Park Sam-koo, chairman of Kumho Tire should bear responsibility such as stepping down from management. It is desirable to sell off Kumho Tire to a Korean company not to a foreign company to avoid a technology leak abroad."
In particular, the Committee to Oppose the Overseas Sell-off of Kumho Tire is watching closely a confrontation between the creditors including the Korea Development Bank and chairman Park over the trademark fee rate. Park is in the position that he will receive 0.5% of the fee directly from Double Star for 12.5 years, and the KDB is considering a way to accept the chairman’s demand and make up for the cost for Double Star.
The KDB promised Double Star 0.5% of the fee for 12.5 years. The committee pointed out that the KDB’s accepting Lee's demand is clearly a special favor in accordance with contract change.
"We do not understand that the KDB is pushing forward with the sale to Double Star despite various allegations such as special favors for Double Star during the selection of a preferred bidder and making up for loss for Double Star according to change in the contract.