Gwangju City, Gwangsan District, and Civic Groups Welcome Kumho Tire Labor-Management Agreement

Resumption of Operations at Gwangju Plant 1 and Construction of New Hampyeong Facility
Calls for Responsible Action Toward Citizens Affected

Black smoke is rising from Kumho Tire's Gwangju factory due to a fire that occurred on the morning of May 17. Photo by Song Bohyun

After the fire, Kumho Tire's labor and management jointly announced an agreement centered on the resumption of operations at Gwangju Plant 1 and the construction plan for a new plant in Hampyeong. In response, Gwangju City, Gwangsan District, and the Citizens' Countermeasure Committee expressed their 'welcome' for the agreement.

On July 30, Gwangju City issued a statement saying, "We actively welcome the agreement, which includes the resumption of operations at Gwangju Plant 1 and the construction plan for a new plant in Hampyeong." The city plans to meet with Kumho Tire in August to discuss a concrete relocation roadmap and implementation plan.

On the same day, Gwangsan District also released a statement, saying, "We welcome the labor-management agreement toward the rebuilding of Kumho Tire." The district emphasized, "The current maintenance of employment, and the succession of Gwangju Plant's production capacity by the new plant, can resolve the concerns that the local community has had about Kumho Tire over the past two months. We will provide every possible cooperation to help Kumho Tire make a fresh leap forward and expand globally from its new base."

The district added, "There are still challenges that need to be addressed together," and urged, "We hope that Kumho Tire and its major shareholder, Doublestar, will fully assume responsibility for citizens who suffered damages due to the fire."

The Citizens' Countermeasure Committee also expressed its 'welcome' in a statement on the same day, evaluating, "This agreement reflects the wishes of the local community, and it incorporates the core demands of guaranteeing employment for all employees and maintaining domestic production volume."

The committee further pointed out, "There are still issues to be resolved for the normalization of the plant," and stressed, "The proceeds from the sale of the plant site must be used exclusively for investment in domestic plants, and sufficient compensation must be provided to nearby residents."

Meanwhile, the labor-management agreement announced by Kumho Tire on this day is expected to serve as a new turning point for the resumption of operations at the Gwangju plant, which had been suspended for two months due to the fire that occurred on May 17, and for the relocation to Hampyeong.