Jung Il-taek, CEO of Kumho Tire, noted, "We plan to take advantage of the tariff uncertainty to expand supply in premium finished car brands and areas with high technical requirements," adding, "We will respond by adjusting production locations in China, Korea, the United States, Vietnam, and others based on regional tariff situations."
On the 15th, during the launch event for the premium tire "ECSTA Sports" held at AMG Speedway in Yongin, Jung stated, "Last year, we recorded our highest revenue ever since our establishment at 4.5381 trillion won, and our goal this year is to achieve another record high revenue of 5 trillion won."
Recently, U.S. President Donald Trump has repeatedly changed his stance on tariff policy, increasing confusion among global corporations. According to Kumho Tire, with production facilities operating in the United States, China, and others, they are discussing measures to minimize losses based on various scenarios in cooperation with local clients and distribution networks.
Jung stated that they are focusing on overcoming tariff variables by highlighting premium products with high technical difficulty, and they plan to expedite the establishment of new factories in Europe to alleviate investment burdens in China. The plan is to finalize the location selection in the second quarter of this year and begin preparations for full-scale construction, with a mass production target set for 2028.
Jung remarked, "We need to import equipment worth 2.5 billion won for the factory in China from the United States; however, the tariffs alone exceed 2.5 billion won," adding, "Last year, we faced high material costs due to inflation, but now we must proceed with the European new factory due to tariffs."
He stated, "We are in discussions regarding support amounts for constructing factories in three countries—Poland, Serbia, and Portugal," noting, "To ensure a successful ramp-up, engineers from key factories, including Korea, need to be dispatched for an extended period; however, obtaining local work permits has been sluggish due to the Russia-Ukraine war, but it is now almost complete."
Regarding plans to expand production capacity in the United States, they stated they would respond flexibly. Given that expansions are scheduled at all factories in the mid to long term, they plan to invest according to existing plans but can operate agilely depending on circumstances. In the U.S., they have already secured vacant land next to the factory.
They also left open the possibility of increasing product prices in the U.S. Im Seung-bin, vice president of sales, explained, "The percentage of tires produced by U.S. tire companies domestically is only 30%, so if tariffs remain in place, tire prices cannot help but rise," adding, "Price adjustments for B2C and B2B transactions are essential."
On this day, Kumho Tire launched three new premium tire models—ECSTA Sports S, ECSTA Sports, and ECSTA Sports A/S—characterized by enhanced durability that improves braking power, handling, and high-speed driving performance. They can be equipped in both internal combustion engine vehicles and electric vehicles.