In response to the state-run Korea Development Bank’s decision to sell the struggling Kumho Tire to Chinese tire maker Double Star, the labor union of Kumho Tire will stage a partial strike this week followed by a general strike next week, the union said on March 5.
Kumho Tire’s Gwangju and Gokseong plants in South Jeolla Province had stopped production on March 3 due to partial strikes staged by the union, the company said.
Last week’s partial strikes came after the Korea Development Bank, the main creditor of Kumho Tire, announced on March 2 that it would sell the tire maker to China’s Double Star through recapitalization worth 646.3 billion won (US$594.6 million).
“To put management at Kumho Tire and the Chinese unit back on track as quickly as possible, and to minimize losses, negotiating with Double Star was seen as the most rational option,” the KDB said.
The creditors and Double Star are aiming to complete negotiations in the first half of this year.
Both sides have agreed on the three-year employment succession of Kumho Tire workers, and the prohibition of Double Star from selling the local tire maker for three years and the creditors five years.
By Kim Bo-gyung/The Korea Herald (firstname.lastname@example.org