"Stabilizing the Local Community Is Our Top Priority... Preventing Recurrence"
"Coordinating with Automakers to Ensure Stable Supply"
Kumho Tire issued a statement regarding the fire accident that occurred at its Gwangju factory on the morning of May 17, saying, "We deeply apologize for causing great concern and distress, and we bow our heads in sincere apology. We will do our utmost to resolve the situation."
On the 18th, the second day since the Kumho Tire Gwangju factory fire, the urban area around Sochon-dong, Gwangsan-gu, Gwangju is covered in black smoke. Photo by Yonhap News
On May 18, Kumho Tire stated, "At present, the fire authorities are making every effort to extinguish the fire, and our company is also mobilizing all available resources for the firefighting operation in close cooperation with the fire authorities. The exact cause of the fire and the extent of the damage can only be confirmed after the fire is fully extinguished, through internal entry and on-site investigation. We will identify these as soon as possible after the fire is put out."
The company continued, "We have activated an emergency response system for damage recovery and normalization of production, and we are urgently reviewing and promoting the transfer of production of Gwangju factory products to other plants. We are also closely coordinating with automakers to ensure the stable supply of original equipment (OE) tires for new vehicles."
Kumho Tire also emphasized its responsibility to the local community, including compensation for residents affected by the incident. The company stated, "We are making every effort for the swift recovery and return to normalcy of the local community. Beyond simple restoration, we will strive for better coexistence and mutual growth as a member of the local community." The company added, "We will work closely with the relevant authorities in Gwangju City and Gwangsan-gu to ensure that compensation for damages suffered by local residents due to this fire is provided as soon as the extent of the damage is confirmed."
The company stated, "At this moment, extinguishing the fire and stabilizing the local community are our top priorities. To prevent similar accidents from recurring, we will strengthen our safety management systems and conduct safety inspections company-wide." Finally, the company said, "We will do our utmost to prevent recurrence with a greater sense of social responsibility and a cautious attitude. Once again, we sincerely apologize to everyone for causing concern."
The fire broke out at 7:11 a.m. on the previous day in Plant 2 (the western plant) within the Kumho Tire Gwangju factory. The fire authorities announced that the initial extinguishing was completed at 2:50 p.m. that day, approximately 31 hours and 40 minutes after the fire started. The fire authorities also reported that the fire suppression rate had reached 90 to 95 percent, and they expected the fire to be fully extinguished within about 1 hour and 30 minutes from the time the main fire was put out. The response system, which had been elevated to a national fire mobilization order, was downgraded to level 1.
Meanwhile, it has been tentatively determined that 50 to 60 percent of Plant 2 was destroyed, and a significant impact on Kumho Tire's sales is expected. The Gwangju factory produced 12 million tires last year, accounting for about 20 percent of the company's total annual production of 61.39 million tires. Among Kumho Tire's eight domestic and overseas plants, it is the third largest in terms of production volume, after the Vietnam and Gokseong plants. If production disruptions are prolonged, it is expected to be difficult for the company to achieve its management goal of 5 trillion won in sales this year.
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