A long-standing feud between the sons of Kumho Tire Co. founder Park In-cheon has intensified, according to independent reports by Business Korea and the Korea Herald, with a $390 million “breach of duty” lawsuit.
The suit, announced by the Seoul Supreme Prosecutor’s Office, was filed by Park Chan-koo, chairman of Kumho Petrochemical, against his older brother Park Sam-koo, chairman of Kumho Asiana Group, which controls Kumho Tire Co.
In the complaint, Park Chan-koo claims his brother was involved “in dumping the commercial paper of Kumho Industrial and Kumho Tire worth about 420 billion won ($410 million) to the group’s other affiliates in December 2009 – right before the two companies filed for debt workout,” the Korea Herald reported.
The elder brother Park Sam-koo denied the allegation, with a Kumho Asiana Group official telling the Korea Herald, “The CP sell-off was decided after discussions with creditors. The group could avoid bankruptcy due to the decision.” Further, the spokesperson said, Park Sam-koo was not involved in the decision because “he resigned in July 2009 before returning to management in November 2010.”
The two are the youngest of four sons of the company founder. Reports suggest that peace reigned under the leadership of the elder pair, but that Park Sam-koo and Park Chan-koo have been going at each other for years in one protracted power-play.
See the Business Korea article here.
