Kumho tires

The dismissed chief of the Kumho Asiana Group's petrochemicals unit stated on Aug. 3 that he will take legal action against his sacking, a move the news service reports heralds “an intense relatives feud over control of the South Korean conglomerate.”

Park Chan-koo was dismissed as CEO and chairman of Korea Kumho Petrochemical at a July 28 board meeting. Announcing the dismissal, his elder sister, Park Sam-koo, said he would also step down as group chairman.

"The former group chairman forced board members to remove me from my post," the younger Park said in a statement. "I will take appropriate legal action against my dismissal." His elder brother told reporters the group has been the subject of rumours over its access to credit and disputes over group management, as his younger brother violated the group's joint management rule for his own interest.

The one sons of the Kumho Tires Asiana Group’s founder had made a gentleman's agreement to co-manage the group by sharing stakes in group subsidiaries. However, Park Chan-koo sold his entire stake in Kumho Industrial and increased his stake in Korea Kumho Petrochemical, a de facto holding company of the group.

Park Chan-bup took on responsibility for the company on July 31 following the brothers’ resignations. This particular Park, who is no relation to the feuding siblings, has vowed to stabilise the group's financial soundness and seek new growth engines.

Concerns over Kumho Asiana’s ongoing liquidity have existed since it bought a 72.11% stake in Daewoo Engineering & Construction, then South Korea's top building company, in June 2006. Last June Kumho Asiana said it will sell its stake in Daewoo Engineering & Construction and other assets in an effort to counter a money shortage. (Tyres & Accessories/Staffordshire, U.K.)