Kumho Tyre has said it has been unable to pay bonuses to its 3,000 factory workers due to a liquidity shortage.
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The payments were due to be made at the end of last year.
“The bonus payment was delayed because of the company’s liquidity problem,” an official at Kumho Tyre told the Yonhap news agency.
The official said the annual bonus payment was postponed indefinitely, adding the company “will make its utmost efforts” to pay the bonus of 2.5m won (US$1,900) per worker.
South Korean tyre makers have been hit as major OE customers such as Hyundai Motor suffer a sales downturn.
