Report: Kumho Tire deal stalled amid brand royalty hold-up

Seoul – A deal between China’s Doublestart Tyre Co. and Kumho Tire creditors has drifted off-course following royalty demands by former parent company Kumho Industrial Co., according to local news reports.

The reports followed an announcement on 12 June by chairman of Kumho Asiana Group Park Sam-koo who raised a trademark fee from 0.2% to 0.5% of annual sales.

“Under the renewed terms, Doublestar will have to pay KRW150 billion won (€119 million) every year for the next 20 years to Kumho Industrial when substituting the rate…

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