Amid company restructuring works led by creditors, Kumho Tire has officially parted from Kumho Asiana Group, the company said Friday.
“Based on the Monopoly Regulation and Fair Trade Act, Kumho Tire has become a separate affiliate from Kumho Asiana Group,” the company said.
The tire maker had filed for separation from Kumho Asiana Group to the Fair Trade Commission last month.
Kumho Tire has also postponed wage and allowance payments for December, according to a notice sent by Kumho Tire Chairman Kim Jong-ho to employees earlier this week.
Due to continued operating loss, Kumho Tire needs to inject new money but loans have been limited over uncertainties surrounding the company.
“The company will try to make payments as soon as possible,” Kumho Tire said.
After failing to sell the 42 percent controlling stake of Kumho Tire, creditors have been conducting due diligence to put together a business plan to get Kumho Tire back on track.
The latest separation has also downsized Kumho Asiana Group’s asset to 12.3 trillion won ($11.5 billion) from last year’s 15.6 trillion won.
The conglomerate also slid on ranks to 24th from 19th by asset size.
By Kim Bo-gyung (firstname.lastname@example.org)