Kumho Tire, All Executives Voluntarily Return Part of Their Salaries to Prepare for COVID-19

Jeon Dae-jin, President of Kumho Tire

[Asia Economy Reporter Kiho Sung] Kumho Tire is taking self-help measures, including all executives returning part of their salaries, due to business deterioration caused by the novel coronavirus infection (COVID-19).

Kumho Tire announced on the 31st that starting next month until July, the CEO will return 30% of their monthly salary, and other executives will return 20%. Led by President Jeon Dae-jin, all executives of Kumho Tire recently held an emergency management meeting and decided to enter an emergency management system that includes reducing unnecessary expenses by cutting the expense budget as much as possible.

Kumho Tire explained, "In the second quarter of last year, we achieved an operating profit turnaround for the first time in 10 quarters and have maintained profits for three consecutive quarters since then, laying the foundation for a leap forward through sales expansion on the occasion of our 60th anniversary this year. However, an unexpected external adverse factor, COVID-19, occurred, and to overcome the worsening business environment caused by this, we established a company-wide response system including an emergency countermeasure committee and a practical task force (TF)." They also stated that while making company-wide cost reduction efforts, they are actively promoting sales activities through innovative ideas such as free replacement services in line with the social distancing campaign.

Meanwhile, major executives of Kumho Tire also purchased treasury stocks in February to defend the stock price in response to the short-term excessive stock price decline caused by external adverse factors and to alleviate shareholders' concerns.

This content was produced with the assistance of AI translation services.