The state-run Korea Development Bank chief Lee Dong-gull upped the pressure against resistant labor union in an emergency press conference on Monday, stating that the labor union has made a verbal agreement to the sale of the ailing tiremaker to China’s Doublestar last Friday.

Accusing the labor union of failing to take follow-up measures, Lee said that the company would be forced into a workout unless a formal consensus is reached by the deadline of this Friday set by its creditors.



Lee said that the verbal agreement was made during closed-door meetings amongst the two sides last Friday.

A draft of their joint statement was sent to the labor union on Sunday, requesting their final approval by midnight, according to Lee.

The labor union, instead of responding, further complicated the issue by suggesting a local company was interested in buying the tiremaker, Lee said.

The KDB is the major creditor of Kumho Tire, the nation’s second-largest tiremaker.

By Cho Chung-un (christory@heraldcorp.com)