SEOUL, South Korea (Jan. 6, 2010) — Kumho Asiana plans to sell some of its assets—but not its Kumho Tire Co. operations—and launch a massive cost-cutting plan to strengthen its financial position.
Last week the company announced that its two main businesses—Kumho Industrial and Kumho Tire—would be put under a debt-workout program. The group also owns Korea Kumho Petrochemical which operates rubber chemical and EPDM businesses. The main creditor, Korea Development Bank, was scheduled to meet yesterday with other creditors to work out a new debt-repayment schedule.
Kumho Asiana is expected to sell off shareholdings owned by its subsidiaries, cut jobs and wages by 20 percent and to impose obligatory unpaid holidays on staff.