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Korea Herald
16-07-2025
- Automotive
- Korea Herald
Kumho Tire union slams relocation, delays recovery plan
Korea's second-largest tire manufacturer, Kumho Tire, is facing a labor dispute over its yet-to-be-announced recovery plan following a major fire at its Gwangju plant in May, raising concerns over when the company will restore full production capacity in the city. On Wednesday, the Kumho Tire chapter of the Korea Confederation of Trade Unions announced it would stage a protest in front of the company's Seoul office on Thursday, criticizing management for reportedly seeking to scale down domestic production as part of its post-fire recovery plan. 'The union found that Double Star — Kumho Tire's largest shareholder, based in China — is planning to build a new plant in Korea with an annual capacity of 3.5 million tires, which is smaller than the current Gwangju facility, while fast-tracking a new 6 million-unit plant in Europe,' the union said. 'We began talks over the plan on June 30 and have protested since, but the company has shown no signs of changing it.' Since the 76-hour fire broke out on May 17, severely damaging the Gwangju No. 2 plant, Kumho has yet to present a clear recovery plan. Operations at both the damaged facility and the adjacent, unaffected No. 1 plant have remained suspended. This has fueled speculation about the company's future production plans — whether it will restore the Gwangju plant, relocate to Hampyeong in South Jeolla Province, or shift production overseas. Separately, Kumho Tire has been considering its first European plant to strengthen its presence in the region, which accounts for around 25 percent of its total revenue. Poland, Serbia and Portugal were shortlisted as candidate sites a month before the Gwangju fire. The union is demanding that the company prioritize restoring the Gwangju plant's original annual capacity of 12 million tires before pushing forward with overseas expansion. In regulatory filings, however, Kumho Tire said no decisions had been made regarding a potential relocation to Hampyeong or a new European facility. 'The recovery road map is under discussion with the labor union and is expected to be announced within July once it is finalized,' a company official said. As differences persist between the company and the union over the recovery road map, the announcement, initially planned for early July, is expected to be further delayed, likely slowing the overall recovery process as well. Meanwhile, the suspension of production at the Gwangju plants, which account for 20 percent of Kumho Tire's total global output, is expected to affect the company's performance starting in the second half of 2025, as domestic inventory runs low, according to Daishin Securities.
Straits Times
16-06-2025
- Business
- Straits Times
Change in S. Korean government leaves foreign domestic worker programme in limbo
The programme drew concerns ranging from job scope and oversight to worker protection and cost. PHOTO: EPA-EFE SEOUL - South Korea's pilot programme for overseas domestic workers is now hanging in the balance, with no clear path forward after months of delays, labour disputes, and a new administration that had voiced skepticism about the system in the past. The Ministry of Employment and Labour had pledged to finalise a long-term version for the programme by mid-2025, but nothing has been put forward. Vice-Labour Minister and acting Minister Kim Min-seok said on June 15 that it 'won't be easy' to expand beyond the pilot programme within June . Launched in September 2024, the initiative aimed to ease pressure on working parents by hiring 100 trained domestic workers from the Philippines to assist with child care and housework in Seoul. It was framed as a response to South Korea's record-low birthrate and the growing strain on dual-income families. The project gained support from former president Yoon Suk Yeol, but it now faces uncertainty following his removal in April. His successor, Mr Lee Jae-myung of the Democratic Party, assumed office on June 4, representing a party that has consistently raised concerns about the initiative. Filipino caretaker system face criticism over cost, labour issues From the beginning, the programme drew concerns ranging from job scope and oversight to worker protection and cost. South Korea is a signatory to international labour agreements that require countries to give foreign workers the same minimum wage rights as Korean workers. That pushed the initial the service fee to 13,940 won per hour (S$13), including the minimum wage, insurance and other mandatory costs. As of 2025, that rate has risen to 16,800 won. Critics argue the high service fees means the programme is only accessible to high-income households. According to city data, 43 per cent of applications came from just three of Seoul's wealthiest districts: Gangnam, Seocho and Songpa. The city government has also faced mounting issues from workers themselves. Some reported delayed wages, while others said they were asked to perform duties not covered by their contracts, such as pet care, English tutoring, or visiting employers' extended families. It was alleged last week that the two workers deported for leaving their posts were subject to severe exploitation during their stay here. Allegations included excessive working hours and the authorities' refusal to address the issue. The ministry denied the claims in an official statement. In May, Vice-Labor Minister Kim acknowledged the challenges, saying satisfaction among participating families was high at 84 per cent, but wage issues and unclear employment boundaries remained unresolved. Labour groups, including the Korea Confederation of Trade Unions, have called for a pause and full review of the programme. 'There are still serious issues with delayed wages, unclear job descriptions, and a lack of proper oversight,' the group said after the government announced a one-year extension of the pilot in February. In 2023, Democratic Party spokesperson Lee So-young also criticised the underlying logic of such programmes, arguing that foreign domestic workers haven't improved birthrates in places like Hong Kong and Singapore. Despite the political headwinds, the domestic workers currently in Korea are expected to stay because their employment permits have been extended through early 2026. 'Even if this programme ends, those with renewed contracts can keep working as domestic helpers, and in principle, they may be reassigned to other service jobs like hotels or restaurants within the permitted sectors,' a Labour Ministry official said. THE KOREA HERALD/ASIA NEWS NETWORK Join ST's Telegram channel and get the latest breaking news delivered to you.
