The government says it shares the view of Kumho Tire's creditors, that selling the financially-struggling tire maker to a foreign company would be best to normalize operations.
The head of the Ministry of Trade, Industry and Energy’s office on industrial innovation and growth, Moon Seung-wook, revealed the assessment at the National Assembly on Tuesday.
Moon was speaking at a meeting organized by the Party for Democracy and Peace on ways to tackle the shutdown of a General Motors Korea plant in Gunsan and the cash-strapped tire company.
Moon said it would be desirable for a Korean company to purchase Kumho but realistically there is no business that will go through with the purchase given Kumho’s severe liquidity problem.
The tire maker's labor union declared that it will stage a general strike on Wednesday in protest of the overseas sale plan.