Kumho Tire delays bonus payments amid liquidity shortage

Posted on: Sat, 03 Jan 2009 01:35:00 EST


Symbols: KMHTY
SEOUL, Jan 03, 2009 (Asia Pulse Data Source via COMTEX) --
KMHTY | Quote | Chart | News | PowerRating -- Kumho Tire Co., South Korea's second-largest tiremaker, said Friday it hasn't been able to pay bonuses last year to its approximate 3,000 factory workers amid a liquidity shortage.

"The bonus payment was delayed because of the company's liquidity problem," an official at Kumho Tire said.

The Kumho Tire official said the annual bonus payment was postponed indefinitely, saying the company "will make its utmost efforts" to pay the bonus of 2.5 million won (US$1,883) per worker.

South Korean tiremakers have been reeling as automakers such as Hyundai Motor Co. and Kia Motors Corp., their major clients, are suffering from a sharp slump in vehicle sales.

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