In efforts to convince the labor union and public that China’s Doublestar is a credible buyer of Kumho Tire, Doublestar Chairman Chai Yongsen on Thursday promised autonomous management of the local firm and guaranteed three years of employment.

While urging the labor union to cooperate with the recapitalization deal Doublestar had signed with creditors last week, Chai hinted at a possible withdrawal if the union does not come on board by the end of this month.

“Together with Kumho Tire, Doublestar hopes to grow as a competitive company worldwide. We will respect all previous and future agreements Kumho Tire has made and will make with employees,” Chai said during a meeting with the press at the Korea Development Bank’s headquarters.

“Doublestar will wait patiently for the union, but it may not be able to wait indefinitely.”

Chai’s visit comes amid escalating tensions with the labor union, which have intensified since Doublestar’s deal with the Korea Development Bank, the head of Kumho Tire’s nine creditors, to purchase the ailing local firm in a recapitalization deal last week.

If the union does not approve of the deal by March 30, Kumho Tire will go into a workout process.

The 646.3 million won ($594.6 million) deal would land Doublestar with 45 percent stakes in Kumho Tire, making it the largest shareholder, followed by the creditors’ 23.1 percent.

Addressing the labor union’s doubts over the Chinese firm’s long-term commitments, particularly in terms of job security, Chai said workers will be guaranteed employment for three years, as stated in an agreement and based on international business customs.

Chai had previously denied knowledge of a clause that ensures employment during an interview with Korean media last week in Qingdao, China.

Opposing injection of foreign capital, the union in a statement called for Doublestar to present an objective document that could assure job security for the next 10 years.

The union has not yet accepted Chai’s request for a meeting, and will hold partial strikes through Friday, followed by a general strike Saturday.

To assure the independent management of Kumho Tire, its headquarters would remain in Korea, resembling the acquisition model China’s automaker Geely employed when it bought Swedish carmaker Volvo, Chai said.

During the press conference, Chai emphasized Doublestar’s high level of technology, which it is seeking to further improve together with Kumho Tire to become No. 10 on a global scale.

Kumho Tire’s stock rose 10.38 percent from the previous day to 5,220 won ($4.90) per share. 

By Kim Bo-gyung (lisakim425@heraldcorp.com)