Gwangju City Council Urges Double Star to Prepare Measures for Kumho Tire Recovery

Statement Issued: "Negative Impact on Job Security and the Regional Economy"
"Major Shareholder, Management, and Government Urged to Take Responsible Action"

A view of Gwangju City Council.

On June 18, the Gwangju City Council stated, "We urge Double Star, the Chinese major shareholder of Kumho Tire, to take responsible measures to address the aftermath of the fire."

On this day, the council issued a statement in the name of all its members, saying, "Due to the fire at the Kumho Tire Gwangju plant on May 17, the local community and workers are facing serious job insecurity and threats to their livelihoods. Double Star promised to normalize management, promote corporate growth, and ensure job stability when it acquired Kumho Tire, but is now displaying an irresponsible attitude, as if watching a fire from across the river, regarding the current situation."

The council continued, "Since Double Star acquired Kumho Tire in 2018, the company posted its highest-ever performance last year, recording an operating profit. However, Double Star is now ignoring the damage caused by the fire and shifting responsibility onto the local community and workers. Double Star must take direct action to prepare all necessary measures for normalization, including damage recovery, plant relocation, and reconstruction."

The council also warned, "Any unilateral decision that ignores workers' job security and right to livelihood, as well as the economic stability of the local community, could lead to further conflict and catastrophe. Management should not only include the company's perspective in the normalization roadmap to be submitted to Double Star, but also actively gather and reflect the opinions of the labor union and the local community."

Furthermore, the council emphasized, "This situation is not simply a corporate issue, but is directly linked to the regional economy and employment. The government must prevent the collapse of the local economy and ensure job security for workers by providing financial support for the normalization of the Kumho Tire Gwangju plant. Now is the time when substantial support is urgently needed. The government must also prepare active support measures."

Meanwhile, the council added, "The Kumho Tire situation is not merely a corporate management crisis, but a critical issue with a huge impact on the job security of countless workers and the regional economy. We strongly urge Double Star, management, and the government to cooperate with a proactive and responsible attitude to ensure that Kumho Tire, the cornerstone of the Gwangju economy, can return to normal operations, and to work together to resolve this issue."