Kumho Tire, Account Seizure Crisis Eases... "Payment and Normalization Underway"

Court Grants Final Approval for Previous Day's Stay of Enforcement Application Following Deposit Procedure

Kumho Tire Gwangju Plant (Photo by Kumho Tire)

[Asia Economy Reporter Kim Ji-hee] Kumho Tire has been able to gradually normalize the payment of employee allowances and various other payments that had been suspended since the end of last month. This follows the court's final approval of Kumho Tire's application for a stay of compulsory execution on the seizure of claims.

According to Kumho Tire on the 25th, the Gwangju High Court approved the stay of compulsory execution application regarding the 'seizure of claims and collection order' filed by the non-regular workers' union of Kumho Tire on the 20th, and after the deposit procedure, finally approved the cancellation of the compulsory execution yesterday.

As a result, Kumho Tire, which was at risk of being unable to pay employee salaries, has been able to breathe a sigh of relief for the time being. A Kumho Tire official stated, "With the cancellation of the seizure of claims, we plan to pay the vacation pay and allowances that were not paid at the end of July on the 25th," adding, "Payments to suppliers and August salaries will be made normally in sequence."

Earlier, the Kumho Tire Non-Regular Workers' Branch applied for seizure of claims against the company at the Gwangju District Court on the 29th of last month, and the court approved it. As a result, Kumho Tire's corporate account was seized, financial transactions were halted, and payments such as vacation pay, allowances, and supplier payments became impossible.

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