Kumho Tire Gwangju Plant Eligible for Up to 500 Billion KRW Insurance Payout After Fire
Comprehensive Property Insurance with Six Insurers... Over 1 Trillion KRW Coverage
Gwangju Plant Assets at 3.6 Trillion KRW, Annual Sales 1 Trillion KRW... Full Production Halted
Compensation for Resident Damages to Be Handled Through Separate Insurance Policy
The Kumho Tire Gwangju plant, which recently halted all operations due to a fire, is eligible to receive up to 500 billion KRW in insurance payouts.
On May 19, Kumho Tire announced in a regulatory filing that it had signed a comprehensive property insurance contract with six insurance companies: DB Insurance, Hyundai Marine & Fire Insurance, Samsung Fire & Marine Insurance, Hanwha General Insurance, Meritz Fire & Marine Insurance, and KB Insurance. The total insured amount is 1.2947 trillion KRW, with the compensation limit for this fire set at a maximum of 500 billion KRW.
As of the end of last year, the Gwangju plant affected by the fire had total assets of 3.6285 trillion KRW, an annual tire production volume of 12 million units, and annual sales of approximately 1 trillion KRW. The company stated, "The amount of damage caused by the disaster is currently being assessed," and added, "The final insurance payout will be determined based on the results of the loss assessment."
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The fire broke out on May 17 in the compounding process of Plant 2 at the factory located in Sochon-dong, Gwangsan-gu, Gwangju. Although the fire did not spread to Plant 1, which houses the main production line, major equipment such as rubber mixing facilities and conveyor belts have stopped, making a complete production halt unavoidable. Compensation for damage to nearby residents caused by the fire will be handled through a separate insurance policy.
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