Against the backdrop of a company restructuring led by its creditors, South Korea’s Kumho Tire has officially parted from Kumho Asiana Group, according to the company.
On 28 December, Kumho Tire announced that the company became independent from the Kumho Asiana Group pursuant to Article 14-2 of the Monopoly Regulation and Fair Trade Act.
The Fair Trade Commission approved the company’s separation from the Kumho Asiana Group and officially notified Kumho Tire of the approval.
After failing to sell the 42% controlling stake of Kumho Tire, creditors have been conducting due diligence to put together a business plan to get Kumho Tire back on track. The goal is to minimise future uncertainty and get the global tyre maker back on its feet again.
Due to the separation, Kumho Asiana Group’s assets have been downsized to US$11 billion from US$14 billion at the end of 2016. Its ranking also slid down from 19th to 24th place among South Korean business groups by asset size.
Kumho Asiana Group now has 27 affiliates including Kumho Industrial, Asiana Airlines, Kumho Express and Asiana IDT.