Does Kumho Tire Unilateral Shilling Double Star Accept?

On June 12, 2017, Park Sanyo, chairman of Kumho Asiana Group, issued an announcement in a separate announcement that the “Kumho” brand royalties will increase from 2% of annual sales to 5%.

Kumho Tires

According to the report, based on Kumho's sales of 3 trillion won (approximately RMB 18.14 billion) last year, under the new conditions, the Double Star Group will have to pay 150 billion won (approximately RMB 900 million) each year.

At the same time, Park San-joo stressed: "The compulsory use period of the 'Kumho' trademark will be extended from 5 years to 20 years."

Analysis of the industry said that this change means that the Double Star Group needs to pay far more than the expected trademark fee.

It is understood that the Double Star Group has explicitly told Kumho Tire Creditors headed by Korea Industrial Bank that they cannot accept the comments made by Park San in this announcement.

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