Kumho Tire Files for Injunction to Halt Forced Execution on Bank Account Seizure in Court

[Asia Economy Reporter Kiho Sung] Kumho Tire is reported to have filed a request for suspension of compulsory execution of seizure regarding the seizure of the company's operating fund account by the irregular workers' union. If this request is accepted, Kumho Tire is expected to avoid the worst-case scenario.

According to the industry on the 18th, Kumho Tire applied for suspension of seizure execution at the Gwangju District Court on the 14th. This is a procedure to postpone the seizure of the bank account, which was made based on the first trial ruling, until the final trial, allowing the company to normalize its financial situation through a deposit procedure depending on the court's decision.

Earlier, the irregular workers' union filed a claim for seizure and collection against Kumho Tire in court and seized the corporate account on the 30th of last month.

Those who had worked under subcontracting arrangements initiated the seizure of 20.4 billion KRW in wage differences and interest based on their victory in the first trial of the lawsuit to confirm worker status.

After the seizure of the company’s bank account, Kumho Tire and the irregular workers' union have been seeking ways to resolve the situation, but no significant results have been produced so far.

Kumho Tire is unable to pay employee vacation expenses and on-site allowances due to the seizure of the corporate account, and its fund management is also facing difficulties.

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