The battle continues between outgoing Kumho Chairman Park Sam-koo and the Korea Development Bank (KDB).
KDB recently decided not to give 2.2 billion won ($2 million) in severance pay to the outgoing Kumho chief, claiming that he failed to turn the company around, which justifies suspending any severance pay.
Now the creditors are reportedly frustrated with Park, head of Kumho Asiana Group, as he refuses to allow the use of the Kumho brand for free. KDB and other creditors claim that Park said he would allow whoever acquires the tiremaker the use of the brand name at no cost; however, Kumho Group officials say Park never promised the free use of the Kumho brand and actually meant that the buyer could use the brand “for a reasonable price.”
According to The Korean Times, “The state-run bank said Friday it has written twice to Kumho Industrial, which owns the Kumho trademark, asking it to provide documents guaranteeing the free use of the brand. But it has not received any reply from the company, which Chairman Park controls.”
A KDB official threatened “”drastic measures” if the issue is not resolved to allow the free use of the trademark.
Beyond the back and forth between Park and the KDB, Kumho Tire is moving forward in a positive direction. In late October, KDB appointed Kim Jong-Ho as the new chairman of Kumho Tire, effective later this week (Dec. 1, 2017). He previously served as CEO for Kumho Tire from 2008 to 2012, and his focus on innovation and technology across all businesses contributed to substantial global expansion.