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Kumho’s family feud continues

[THE INVESTOR] The legal battle between Kumho companies continues with Kumho Petrochemical appealing the court decision that sided with Kumho Asiana Group.

According to industry sources, Park Chan-koo’s Kumho Petrochemical filed an appeal against his brother Kumho Asiana Group chairman Park Sam-koo and former Kumho E&C chief Kee Ock.

In the suit, Kumho Petrochemical accused Park Sam-koo and Kee of being behind the sale of Kumho Industrial’s commercial papers in 2009. 

Park Sam-koo(left) and his brother Chan-koo
Park Sam-koo(left) and his brother Chan-koo

The firm claims that the two orchestrated the sale of the commercial papers to Kumho Petrochemical despite being aware that Kumho Industrial was financially unsound. In the suit, Kumho Petrochemical demanded compensation of 10.3 billion won (US$ 9 million), saying that the corporate papers had cost the company 16.5 billion won.

On June 23, the Seoul Central District Court threw out Kumho Petrochemicals’ claims.

In addition, the two entities led by the Park brothers are engaged in legal battle over the name “Kumho” and the logo. The first round of this battle was won by Kumho Petrochemical, but Kumho Asiana has filed an appeal.

Kumho Petrochemical has also accused Kumho Asiana of damaging its interests when it handed over Kumho Terminal to Kumho & Company.

By Choi He-suk (cheesuk@heraldcorp.com)
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