The Korea Development Bank's (KDP) decision to sell the assets of Kumho Tire to Chinese tyremaker Double Star continues to meet opposition from the labour union of Kumho Tire, which will stage a partial strike this week. A bigger general strike could follow next week, the union says.
The Korea Herald reports that Kumho Tire's Gwangju and Gokseong plants in South Jeolla Province had stopped production at the weekend due to partial strikes.
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Last week's partial strikes came after the Korea Development Bank, the main creditor of Kumho Tire, announced Friday that it would sell the tyremaker to China's Double Star through a recapitalisation deal worth 646.3 billion won ($595m).
Kumho Tire is the country's second-biggest tyre maker and No. 14 in the world by sales, the Korea Herald notes.
"To put management at Kumho Tire and the Chinese unit back on track as quickly as possible, and to minimise losses, negotiating with Double Star was seen as the most rational option," the KDB said in a statement.
If the recapitalisation deal goes through, Double Star would become Kumho's largest shareholder with a 45 percent share.
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By GlobalDataThe creditors and Double Star are aiming to complete negotiations by the first half of this year, the Korea Herald reported.
