Kumho restructures for motorsport expansion

South Korean company Kumho Industrial has agreed to sell its tyre business unit for KRW1.43trn (US$1.2bn) to a new joint venture company which will actively promote the Kumho brand through motorsport. The new company will be established next month, and the principal shareholder will be the nation's military pension fund, the Military Mutual Aid Association. The MMAA will own 50 percent, Kumho 30 percent and smaller investors the remaining 20 percent of the venture

May 20, 2003, 7:25 PM

Kumho Industrial president Mr Shin commented: "I'm delighted that we've been able to conclude this excellent contract with the Military Mutual Aid Association. The new company will have a very healthy financial structure which will enable us to forge ahead with our strategy of developing the image and awareness of Kumho as a technology-driven, ultra-high-performance brand using motorsport as the prime means of showcasing our products.

"Our existing management structure will remain in place both domestically and within our overseas sales companies. Indeed, the only changes I foresee in the future will be positive ones as we continue to develop our business activities and become a leader in the global tyre market."