Claiming a temporary cash shortage, Kumho Tire Co. has reportedly delayed December salaries from its employees.
“The delayed salaries worth about $9 million will be paid to all employees in early January, when the company will receive payments from its clients,” a company spokesman told South Korean media.
The move, though, has caused concern among investment analysts about the liquidity of Kumho Asiana Group, the tire company’s parent. Kumho Asiana faces a large payment connected to its Daewoo Engineering & Construction Co. unit and has reportedly had trouble raising money and has resorted to selling stakes in the construction company and other subsidiaries.
“If the parent group’s process to sell the construction unit suffers a delay next year, it may make Kumho Tire’s liquidity condition worse,” an analyst told financial media.
