New CEO takes the reins at Kumho Tyre.
At its recent extraordinary shareholders’ meeting, Kumho Tyre named Kim Jong-ho chairman and CEO for the next three years, Korean media have reported. The executive was previously the president of the tyre maker from April 2009 to January 2012.
Kim was involved in Kumho Tyre’s debt-rescheduling programs during his term as chief and was in charge of the company’s overseas operations, according to Yonhap News. In September, creditors’ efforts to sell a 42% stake in the financially troubled tyre maker to China’s Qingdao Doublestar collapsed due to differences over the acquisition price. In March, Qingdao Doublestar signed a contract worth 955 billion won ($832.2 million) with creditors to buy Kumho Tyre, but the deal fell through when the Chinese company demanded a cut in the purchase price to 800 billion won, citing deteriorating earnings. In the January-September period, Kumho Tyre’s net losses deepened to 59.91 billion won from 54.93 billion won a year earlier.