Kumho Asiana group to sell assets

ERJ staff report (DS)

Seoul, Korea -- The Kumho Asiana group is to sell off some assets and embark on a massive cost-cutting exercise in a bid to strengthen its financial position. The group, which owns Kumho Tire, is not expected to sell the tyre activity.

Last week the company announced that its two main activities -- Kumho Industrial and Kumho Tire - would be put under a debt-workout programme. The group also owns Korea Kumho Petrochemical which operates rubber chemical and EPDM businesses. The main creditor, Korea Development Bank is due to meet today with other creditors to work out a new debt-repayment schedule.

The group is expected to sell off shareholdins owned by irs subsidiaries, to cut jobs and wages by 20 percent and to impose oligatory unpaid holidays on staff.

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